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How to Screen Tenants for a Rental Property - 2024 Guide

Learn how to screen tenants for a rental property, where to find reliable tenant screening background checks, and what screening questions to ask.

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Securing the right tenant for your rental property is crucial for a hassle-free and lucrative leasing experience. At Good Life Property Management, we recognize the importance of thorough tenant screening. That’s why we’ve put together this definitive guide. Whether you’re looking for a step-by-step Tenant Screening Checklist, insights on understanding background checks, or tips to spot red flags, this article has you covered. Let’s dive into the essentials of finding the best tenants for your property.

Table of Contents

What is tenant screening?

Tenant screening is a systematic process used by landlords and property managers to assess the eligibility of potential renters. The aim is to gauge whether the tenant is a good fit for your property. For example, will the prospect be a responsible tenant? Will the prospect pay rent on time? Will the prospect respect the neighbors and the property? Tenant screening can help you answer all these questions.

While the specifics of the screening process might vary amongst property managers or landlords, the general purpose remains the same. Also, tenant screening processes can vary depending on regional laws, property owner preferences, or HOA rules.

What is a tenant screening report?

A tenant screening report pulls information from a variety of background checks, including credit scores, rental histories, and criminal records.

Because this document combines findings from a variety of sources, the screening report provides a consolidated snapshot of a potential renter’s background. Landlords will use this report to make an informed decision about whether or not to accept prospective tenants.

Here’s what might typically be included in the tenant screening report:

  1. Personal identification, such as full name, date of birth, and pertinent details to establish tenant identity.
  2. Credit report, including credit score, payment history, bankruptcies or other financial judgements.
  3. Criminal history, such as felony and misdemeanor convictions, pending criminal cases, and sex offender registry status.
  4. Rental history, including previous addresses, names and contact details of past landlords, evictions or broken lease agreements, and payment history (e.g., late payments, unpaid rent)
  5. Employment verification report that includes current and past employers
  6. References, typically provided by the tenant and may include previous landlords
  7. Income verification through pay stubs, tax returns, or bank statements.
  8. Legal judgements such as evictions, money owned to previous landlord(s), etc.

Landlords and property managers must ensure that all information gathered and used complies with federal, state, and local laws, including the Fair Credit Reporting Act (FCRA) and the Fair Housing Act. Discrimination based on race, color, national origin, religion, sex, familial status, or disability is prohibited. Depending on the state, there might be additional protective classes.

How to screen tenants for a rental property

Screening tenants effectively is important for safeguarding your rental property. Start by gathering data through a rental application, which captures both personal and employment details. Engaging potential tenants in a brief discussion can help you gauge their suitability and give you a glimpse into their personality and future plans.

Next, you need to dive deep into their background checks. Credit checks can help you ensure financial stability. Criminal checks can help you ensure the broader community’s safety. Offering potential tenants an opportunity to view the property can also serve as a touchpoint to gauge prospective tenants.

Finally, allowing the prospective tenant to review a comprehensive lease agreement, detailing mutual responsibilities, can help address concerns before they arise. Throughout this process, fairness and consistency, in line with housing laws, is critical for your legal protection. In the next section, we provide some important tips to remain objective in the tenant screening process.

How to Screen Tenants Objectively

Remaining objective and consistent during tenant screening is not only a best practice for selecting reliable tenants but also essential for compliance with Fair Housing laws.

As a landlord, you can ensure objective and consistent tenant screening by having a clearly defined, written set of rental criteria. Automated tenant screening platforms can be helpful in reducing biases and ensuring applications meet preset standards.

Regularly reviewing Fair Housing laws will be helpful in fair tenant selection. Open communication about criteria with potential tenants from the beginning also establishes clear expectations and facilitates a straightforward rental process. In summary, a blend of technology, documentation, and education will help you to maintain objectivity in tenant screening.

7 Tips to Ensure Tenant Screening Fairness

  1. Write down your criteria for what qualifies someone to rent your property.
  2. Automate the process so that you can reduce human bias. You can do this by using a tenant screening service that will automatically flag applications that don’t meet your criteria.
  3. Freshen up on the Fair Housing Act and other local laws.
  4. Document everything and keep thorough records, including reasons for any rejections based on your criteria.
  5. Avoid making emotional decisions. Remember that renting out property is a business transaction. While it’s natural to empathize with potential tenants and their personal stories, it’s crucial to stick to the criteria for the good of the business.
  6. Ensure that potential tenants are aware of your criteria from the outset. Transparency about the requirements can set clear expectations and can reduce the number of applicants who don’t meet the criteria.
  7. Seek advice from a property management professional or legal counsel when in doubt!

Tenant Screening Checklist

Having a structured checklist can make the tenant screening process more streamlined and efficient. It ensures that no critical aspect is overlooked, and all potential tenants are evaluated on consistent criteria. Check out our handy tenant screening checklist below:
  1. Check that the rental application is complete:
    • Personal details
    • Employment information
    • Previous addresses and landlords
    • Landlord references
  2. Conduct the initial interview:
    • Discuss reasons for moving
    • Talk about the duration of stay
    • Address any specific needs or concerns
  3. Reference verification:
    • Call previous landlords for feedback
    • Contact current employer for job verification
    • Reach out to personal references
  4. Assess financial stability:
    • Check if monthly income is at least 2.5 times the rent (this can be a preference that changes per landlord)
    • Review recent pay stubs or tax returns
    • Look for consistent employment history
  5. Credit and Background Checks:
    • Evaluate credit score and history
    • Scan for any past evictions
    • Check for any criminal records
    • Check for non-discharged bankruptcies
  6. Review lease agreements with the prospective tenant:
    • Have the prospective tenant(s) review a draft of the lease agreement and the HOA Rules and Regulations of your property (if applicable). 
    • Make sure the prospective tenant(s) agree to move in within 14 days of submitting a rental application. This requirement can weed out unsure candidates and attract serious renters. 
  7. Review Compliance with Fair Housing Laws:
    • Ensure no discrimination based on protected classes
    • Make sure all applicants were judged using the same standards
tenant screening checklist infographic - how to screen tenants for a rental property

* Click the image to enlarge it *

Tenant Screening Background Check

The main goal of a background check is to verify the information provided by potential tenants and to check for any undisclosed details that might be pertinent to their rental application. This process typically involves looking at:
  • Criminal Records: This includes checking for both minor offenses and more severe felonies. It’s crucial to note that the presence of a criminal record does not automatically disqualify a tenant; rather, the nature and recency of the offense are considered.
  • Previous Evictions or Other Court Judgements: A history of evictions can be a red flag. This component focuses on identifying any past evictions and understanding the reasons behind them.
  • Employment Verification: This ensures that the tenant is gainfully employed and can afford the rent. It can also reveal any discrepancies between the application and actual employment details.
  • Non-Discharged Bankruptcies: Renting to a tenant in a current non-discharged bankruptcy case is up to your discretion.

For property managers and landlords, the background check is a protective measure. It mitigates risks associated with potential property damage, delayed rent payments, or disturbances in the community. By being thorough in this step, landlords can foster a safer, more harmonious living environment for all tenants.

It’s essential for both landlords and tenants to understand that tenant screening background checks are governed by various laws, including the Fair Credit Reporting Act (FCRA). Landlords must obtain written consent from applicants before conducting a background check and must provide a copy of the report to the applicant if they are rejected based on its contents.

Tenant Screening Questions

Tenant screening questions are another essential tool for landlords and property managers to get a deeper understanding of potential tenants. While it’s crucial to ask the right questions to ensure a good tenant fit, it’s equally important to be aware of which questions are off-limits due to Fair Housing regulations. Good Life Property Management encourages all landlords to familiarize themselves with the Fair Housings Basics.

Most screenings questions will fall under these categories:

  • Basics
  • Financials
  • Background and references
  • Motivations for moving
Per the Fair Housings Basics, here are two lists with examples of questions that are legally acceptable to ask potential tenants.

Questions landlords CAN legally ask:

  • What is your current employment situation?
  • Can you provide references from your current and previous landlords?
  • Have you ever been evicted from a rental property?
  • How many people will be living in the unit?
  • Do you have pets? If so, what kind and how many?
  • Can you provide proof of income or recent pay stubs?
  • Why are you moving from your current residence?
  • How long do you intend to stay?
  • Have you ever broken a rental agreement or lease?

Depending on your criteria for a compatible tenant, you may want to consider adding some more questions that suit your own screening process.

However, landlords are legally prohibited from asking questions related to race, color, religion, national origin, sex, familial status, and disability. Here are some examples.

Questions landlords CANNOT legally ask:

  • What is your race or ethnicity?
  • Are you married, single, or divorced?
  • Do you have children or plan to have children soon?
  • What is your religion or place of worship?
  • Are you disabled or do you have a specific medical condition?
  • What country are you from? Or, What’s your first language?
  • Are you a member of a protected class?
  • Do you receive public assistance or are you on welfare?
  • Questions regarding sexual orientation or gender identity.
It’s worth noting that while some of these questions might seem harmless or even logical from a landlord’s perspective, they can easily be construed as discriminatory. Fair Housing regulations aim to ensure that everyone has an equal opportunity to rent a home, regardless of their race, color, religion, sex, familial status, national origin, or disability. It’s crucial for landlords and property managers to familiarize themselves with these regulations and always prioritize fairness and equality in their screening process.

How much does tenant screening cost?

The cost of tenant screening can vary widely based on the depth of the investigation, the tools used, and whether landlords opt for standalone checks or comprehensive packages. Here’s a breakdown of potential costs:
  1. Basic credit check: $15 to $40.
  2. Comprehensive credit report: $25 to $50.
  3. Criminal background check: $15 to $40.
  4. Eviction history: $5 to $20.
  5. Complete tenant screening packages: $35 to $75, though prices can occasionally go higher based on the depth and breadth of the investigation.
  6. Additional checks: Some landlords might opt for extra checks like employment verification, previous landlord interviews, or reference checks. These can sometimes come with added fees, typically ranging from $5 to $20.
Some landlords pass these costs onto the potential tenants as application fees. However, make sure your application fees comply with local and state regulations.

When to hire help - the best Tenant Screening Services for landlords

Managing multiple properties can quickly become overwhelming, especially when it comes to tenant screenings. For landlords who may not have the expertise in interpreting tenant screening reports, turning to professional screening services can be a smart move.

Here are some recommended top tenant screening services for landlords:

  • Experian RentBureau: Offers credit checks tailored for rental applications and includes payment history from other landlords.
  • TransUnion SmartMove: Provides instant tenant background checks, credit reports, and a leasing recommendation based on the provided data.
  • MyRental: Offers a suite of screening services, from basic credit checks to premium packages that include criminal background checks and eviction histories.
  • RentPrep: Known for its live screening agents who check background reports and verify information for accuracy.
  • LeaseRunner: Offers a la carte services where landlords can pick and choose which checks they want, from credit checks to eviction histories.
  • National Tenant Network (NTN): With over 35 years in the industry, NTN provides comprehensive reports, including credit histories, criminal checks, and eviction reports.

Free Tenant Screening Options

While many comprehensive tenant screening services come with a fee, there are some free options available for landlords who want to minimize expenses. Please remember that free services may not be as thorough or reliable as their paid counterparts.
  • Zillow Rental Manager: Known primarily as a real estate listing site, Zillow also offers a free tenant screening service. Landlords receive a credit report and a background check, but the cost is typically passed on to the applicant.
  • TurboTenant: This platform offers free tenant screening services for landlords, including credit reports, criminal background checks, and eviction histories. However, similar to Zillow, the tenant usually covers the cost.
  • Apartments.com (previously Cozy): While they offer a suite of landlord tools, their tenant screening service includes credit reports and background checks, with the fee typically being paid by the potential tenant.
  • Self-screening: Some landlords opt to handle the screening process themselves, asking potential tenants to provide recent credit reports (which they can obtain for free annually from major credit bureaus) and then conducting informal background checks, like calling references. While this method is free, it might not be as comprehensive as using a dedicated screening service.
  • Local Housing Agencies: Some local or state housing agencies offer free tenant screening services or resources to landlords, especially those renting out affordable housing or participating in housing programs.
  • Online Search: A simple online search or a check on social media platforms can give landlords an idea about the potential tenant’s lifestyle and character. However, it’s essential to tread carefully here to avoid violating privacy laws or making decisions based on discriminatory factors.
  • Public Records: Landlords can manually check public records for eviction histories or criminal backgrounds. Many local jurisdictions have online databases, though this method can be time-consuming and might not capture data from outside the immediate area.

How to get a tenant screening report?

To secure a tenant screening report, you need to determine the scope of information you’re interested in, i.e. credit scores, eviction histories, or criminal backgrounds. Once decided, you can work with a trustworthy tenant screening service.

Remember to obtain the prospective tenant’s written consent to access their personal data. This is commonly secured through the rental application. By providing the necessary details to the chosen screening service, you can get a comprehensive tenant report.

How to check my tenant screening report?

Checking your own tenant screening report is a proactive measure to ensure the accuracy of the data that landlords see. Begin by approaching one of the established tenant screening services, often the same ones landlords use, and request a personal report. Some credit bureaus also offer reports that include rental history. As with any personal credit or background check, you’ll need to provide identification details to access the report. Once received, it’s essential to review all information, verify its accuracy, and, if discrepancies are found, take steps with the reporting agency or bureau to correct them.

Tenant Screening Laws in California

Tenant screening in California is regulated by a combination of federal and state laws that are designed to ensure fairness, non-discrimination, and the protection of personal data.

At both the federal and state levels, Fair Housing Laws prohibit discrimination based on race, color, religion, sex, familial status, national origin, and disability. In California, these protections are further expanded to include sexual orientation, gender identity, source of income, and other categories.

Under the California Consumer Credit Reporting Agencies Act, landlords can request a tenant’s credit report. They must inform the potential tenant of any adverse action (like a rejection) based on the report’s contents and must provide the name and address of the agency that supplied the report.

If a landlord takes an adverse action (denying an application, requiring a co-signer, or asking for a higher deposit) based on information found in a credit report or any other form of consumer report, they are required by the Fair Credit Reporting Act (FCRA) to provide the applicant with an Adverse Action Letter. This letter informs the applicant about the adverse decision, provides the contact information of the reporting agency, and informs the applicant of their right to obtain a free copy of the report and to dispute its accuracy.

Additionally, in California, landlords can charge a screening fee, but there are limits. The fee can only cover the actual out-of-pocket costs of gathering information about the applicant, like credit report fees. As of December 2022, the maximum landlords can charge for screening fees is $59.67.

With regards to privacy, the California Investigative Consumer Reporting Agencies Act requires landlords to inform prospective tenants if they intend to access an “investigative consumer report.” These reports contain information on character, general reputation, personal characteristics, or mode of living.

There are also limitations on questions landlords may ask potential tenants. Landlords in California cannot ask about arrest records that did not lead to a conviction. They also cannot consider a summary offense (a minor violation) that happened more than two years ago.

Lastly, if a landlord does not conduct a personal reference check or does not obtain a credit report, they must return any unused portion of the screening fee to the applicant.

California’s tenant screening laws aim to strike a balance between a landlord’s need to secure reliable tenants and an individual’s rights to non-discrimination, privacy, and fairness. Always ensure to consult with legal counsel or keep up with current regulations to ensure compliance.

How long does tenant screening take?

Tenant screening duration varies based on the depth of the inquiry and the sources involved. Electronic checks, like credit, criminal, and eviction histories, can return results within a few hours. However, verifying employment, income, and rental history can take longer, depending on the responsiveness of references, possibly ranging from a day to several days. On average, while some screenings can be completed within 24 hours, more comprehensive checks might span 2-5 days.

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Tenant screening duration varies based on the depth of the inquiry and the sources involved. Electronic checks, like credit, criminal, and eviction histories, can return results within a few hours. However, verifying employment, income, and rental history can take longer, depending on the responsiveness of references, possibly ranging from a day to several days. On average, while some screenings can be completed within 24 hours, more comprehensive checks might span 2-5 days.

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Hello everybody and welcome to today’s webinar of how to screen a tenant in Leith Lake a Pro. My name is Mariah and I am Good Life Property Management’s Social Media Manager and also your co-host today and I’m so excited to jump into this webinar with you. A few house rules before we begin. We do ask for your full attention during today’s presentation. Please silence your phone, silence your chats. We do encourage you to take pictures of any slides, take some screenshots if you find something helpful. And if for any reason you have to dismiss yourself early today, that’s okay. We will be sending out a copy of our slide deck after our presentation today. We’ll also be sending out, we actually will have a live Q&A at the end of our presentation. And if you have any questions or comments that come up during this presentation, feel free to slide them into the chat and we want to make sure that we answer everything that you guys have before we dismiss you today. With that being said, I’m going to open the floor to our wonderful host, Adam. Hi everybody, Adam Manley here from Good Life Property Management. Glad you could all make it. Thanks for joining today’s webinar. A little bit about me. I am our sales manager here at Good Life Property Management. I’m also the first employee. I am a lifelong San Diego in third generation. And what I do here is work with most of our clients on the onboarding process, working with new owners as they sign up and get started with Good Life. So thanks so much for that introduction. I’m really looking forward to diving into this with everybody today. Thank you Adam. Before we get the ball rolling, let’s jump into our agenda. What are we going to be covering today? We’re going to be talking about how to find the perfect tenant, how to master the tenant screening process. We’re going to look beyond the application and unveil secrets of effective tenant screening. We are going to learn how to understand and how to verify income for strong tenant selection. And we’re going to cover some fair housing fundamentals and how to be able to rent with confidence while still staying compliant. Before we move forward, we have a little trivia question, icebreaker. If you’re comfortable, feel free to give it your best shot. What is the cap on California rental application fees? Awesome. So as of December 2023, the total maximum screening fee you can charge is $6202. Thank you guys for participating. We’re all here to learn together. And yeah. All right guys, and without further ado, let’s go ahead and get started. As you saw from the invite and from the title of today’s webinar, we’re going to be talking about tenant screening. So let’s go ahead and dive in. All right. So the first thing we’re going to talk about are the actual requirements you should be considering when you’re establishing your setting up your screening criteria for perspective tenants. So we’ve highlighted a couple of things on the board here. And I’ll kind of run through them to give you a little bit of commentary on each one. Starting with the most basic, we need contact information, right? That includes names, phone numbers, email addresses. We allude to a couple other things you’ll need, social security numbers, stuff like that. Current and previous addresses, these are going to be important when you’re verifying previous rental references, which we’ll patch on in a couple of slides. Things like employment history, proof of income, all things that you should be considering. Same thing with the driver’s license or some type of photo ID to establish that you know who you’re working with. A couple of additional tips to consider as well. Make sure you make the application fees refundable. And what we mean by that is if you have multiple applications, like if two or three people have applied for the property simultaneously and you approve the first applicant without considering the second or third applicants, go ahead and make those fees refundable for those particular people. In addition, also make a copy of the credit or screening report available to the prospective renter. A lot of times they may be able to use this on another property, which may save them an application fee down the line. So segueing a little bit into proof of income, what documents can you actually or should you actually require for this section of your application? So the first and generally the easiest are pay stubs. Everybody who has a normal job gets a pay stub, you get paid weekly, buy weekly. This is by far probably the easiest way to actually prove income. Some less common ways you could prove it is let’s say maybe the prospective renter is transferring to a new job or maybe starting a new position out a new company. You can always consider a offer letter alternatively if they have a job sometimes within their own company, within HR department, they can print up some type of verification of employment, which would outline things like their salary details and stuff like that as well. Another really common example is like a tax return, like a W2 for example, this will show the whole years worth of income and one nice document. Some other things you can consider are government assistance documents if the tenant is participating in a program like section 8 for example, they’ll often get a supplemental housing voucher or some type of supplemental assistance in addition to their own income. You could require that as well. Bank statements are also something you could use. Let’s say they’re using something like rental income to prove that they can afford the property or if they own their own business. Bank statements are something that you can also require and use to verify proof of income for a prospective renter. All right guys, so some key screening criteria here. These are all things that you should incorporate into your application as key things to screen for. The first is a just a good hard old fashioned credit pull. You’re going to want to review credit history, set some type of threshold for what you consider to be a good credit score, make that the bar. You also want to do a nationwide search for criminal and evictions. This is important because you obviously don’t want to bring somebody in who has some type of trouble past or is maybe broken the law or been previously evicted from another tenant or excuse me from another landlord. That’s something very important you’ll want to incorporate into your criteria. The third thing to consider is financial stability and what do we mean by that when we say financial stability. What we’re really looking for is how affordable the property is for the prospective renter. Consider establishing some type of threshold. For example, the applicant should make at least two times the rent in gross household income or two and a half or three times the rent. For example, setting this threshold, you’ll be able to see how affordable the property is for a prospective renter. The last thing you should consider are previous landlord references. These are imperative. You want to know how the previous tenant left their landlords property if they honored the terms and conditions of the lease if they paid on time, those types of things. You should very strongly consider all four of these criteria when setting up your own rental application for your property. All right. You have the criteria. You’re getting ready to start. How do you ensure that this whole process is fair for a prospective renter? There are many things to consider and you should really start with a basic compliance and understanding of the fair housing laws in your area. Ensure that the rental criteria that you’ve established meets all of the local state and federal fair housing laws. This is going to be a really important first step to making sure you stay out of a potential fair housing lawsuit. That segues very nicely into non-discriminatory practices. Make sure the criteria that you establish is objective and you’re not taking things like race, national origin, religion into consideration when you’re processing these rental applications. One of the third fundamentals for ensuring fairness in your rental criteria is very transparent communication. Meaning you need to let prospective owners, excuse me, prospective tenants know once they’ve submitted an application. If they’re missing any of your T rental criteria and line updates where you’re at in the whole process, that’s going to make sure it’s really fair for everybody if you’re communicating the same way with each prospective tenant. Make sure that the rental criteria is fair and objective like we’ve touched on. When you’re processing rental applications, it’s very important that you process each one individually. When individual assessment with the application you’ve received against the criteria that you’ve already established. Lastly, make sure that you’re very clear going into this process what your standards are. Using the criteria we’ve established in the previous slides, that thresholds for credit score, previous rental references, rent to income ratio, make sure those things are clear once you’re going into this process so you know exactly what to screen against. All right, so you have a couple of good applications for the property. You’re ready to approve somebody. How do you move forward from there? A couple of great steps and a timeline here that we wanted to highlight. The first, as we mentioned in the previous slide, is just very prompt acceptance communication. The second you know that you’re going to approve that applicant, you need to reach out to that perspective tenant immediately. The reason for that is the perspective tenant could be applying and looking at multiple properties. In fact, they probably are. So, it’s really important you strike while the iron is on. You’re also going to want to finalize the terms and conditions of the rental agreement. There’s a couple of ways you could do that. What I would probably recommend is while you are accepting the perspective renter, send them an email letting them know they’ve been accepted and finalize all of the terms and conditions of the rental agreement in that email. That could look like you know finalizing the term length of the lease, for example, if it’s 12 months or 18 months or six months, finalizing what funds are going to be due. The time of lease signing, you know, first month rent security deposit. When they can get the keys, those types of things. So, it’s really important you finalize the rental terms in writing as you’re accepting the perspective renter. The third thing you’re going to want to do is set very clear timelines. As I mentioned a few moments ago, tenants are most likely looking at other properties simultaneously. So, you want to give them a very clear timeline of acceptance. For example, you could give them 48 hours to sign the lease and, you know, handle the first couple of steps of the terms that you guys established together 24 hours. Whatever the time limit is, make sure you establish it and it’s very clear the perspective renter. How much time they have to move forward before you start processing or moving on to the next application? Lastly, move forward. Get everything signed, send the paperwork out, start collecting those moving funds. Do your move and walk through, arrange the day they can get keys. How you get this whole thing wrapped up? Alright, so inevitably you’re going to have to deny an application and there are a couple of legal and ethical considerations to go over. It’s definitely more of an art than a science. Nobody’s good at it. It’s, you know, awkward and uncomfortable every time, but some kind of great keys that can help you navigate this a little bit more successfully is. As we mentioned, make sure the criteria that you’ve established is very objective and clear. Make sure you’re able to deny an application based on that criteria you’ve established and it will also make it a lot clearer what people are meeting that threshold and what aren’t. You don’t have to take somebody’s character into consideration and you shouldn’t in fact, you should really use that criteria because it’ll just, it’ll make it so much easier. You can very clearly see when someone is or isn’t meeting. The second most important thing you’re going to want to do is make sure you’ve meticulously documented everything throughout this entire process with each individual applicant. And what I would recommend is just keep a time log of everything you do. Once the application that you’ve received is completed and you have all the required forms that you need, document that document when you start pulling the credit report, when you start calling their previous landlord references, when you communicate acceptance, all of this is going to be really important if you do end up in a bad situation. You can go back and very clearly point to the process or the steps that you follow to get to the decision that you made. Lastly, prompting courteous notification of the perspective renter. Be courteous when you let people down, let them down easy. Don’t tell them to kick rocks and go somewhere else. Be a professional about it and be prompt in that notification. Looking for a house is a really emotional process and you don’t want to feed people on the line. Let them down easy. Let them move on and potentially go find the right property for them. So how do you do all of this? Where’s a good place to start with all of this? Well, there are some great resources out there to individual rental property owners and consumers and we’ve highlighted a couple of great ones on the screen for you guys. We invite you to check them all out. Find the one that’s going to work the best for your property in your particular situation. And lastly, before we wrap up, a couple of considerations to ask yourself, as you’re going through this process, you may be wondering, hey, is this when should I hire a manager? When does it make sense to or should I? We wanted to highlight some things to think about as you’re going through that. The first is it makes the most sense to manage a property yourself for some of the reasons we’ve highlighted on the screen. You live very close to the property. Maybe this is like an accessory dwelling unit or a grainy flat you built in your backyard. If it’s down the street from you or something like that, if you’re recently retired and have a ton of time on your hands or maybe looking for a new side hobby or project to get into, alternatively, if you have a great legal background to a lot of being a property manager is understanding how to navigate the complexity of the rental laws and put them into practice in a fair way. And if you’re coming from that background, that could give you a big leg up as a rental property owner. If this is a property with a very high level of emotional attachment, for example, this is the house you grew up in or your grandparents house that they own for a hundred years. If there’s a desire to be really involved in every aspect of owning this property and managing it as a rental, that would be a great opportunity to try it yourself as well. Of course, when you’re deciding, should I take this job on or not? There’s always the time factor. We’ve kind of highlighted some of the time involved in managing your own property as an individual landlord. So definitely something you should take into consideration as well. And lastly, a couple other things here. So make sure that you really understand the laws. One of the benefits of using a property manager is that is our main job is to limit liability for our clients. So hiring a property manager could insulate you a little bit more and just make sure you’re following the letter of the law a little bit more carefully as things continue to get more and more complex here in California. That seems to be a bigger part of our job as property managers every day. If you’re deciding to do this yourself, make sure that you have a very good book of business for contractors. I would probably recommend that you have a couple of recommendations for each trade, you know, a couple of different plumbers, a couple of electricians, couple of handyman, couple of contractors. They all specialize in individual things. Some are better with other things than others. Some aren’t going to be available when you need them. That’s another benefit of working with a property manager. It’s a very robust referral network of contractors that they’ve built over many years. Another thing to consider is how you can actually get time back. When a tenant has direct access to the decision maker, you know, they are, you know, they know you’re a phone call away to make a long story short. And a property manager serving as a buffer can insulate you a little bit more from that. And more importantly, can really avoid you having to make on the spot decisions. So something really to consider when hiring somebody is how important is your time and is it worth hiring somebody or doing it yourself? Better results. So something we see very commonly with owners who are self-managing is generally below market rents. You know, they don’t want to rock the boat or, you know, the tenants spend their forever. So, you know, we see below market rents a lot. We also see higher vacancy rates for a couple of reasons. Just, you know, as I alluded to a little bit earlier, they may not have as robust of a network of contractors. So properties can spend more time in the actual repair stage. It may also be more difficult for an individual landlord to show a property to perspective renters so that can increase the time that the place spends on market as well. Property managers generally have, you know, proven processes and systems in place to handle these types of routine procedures that come up with when owning a rental property. And as they’re systematized, they’re able to be executed a lot more efficiently at scale. Actually taxes, there are lots of things to consider with taxes. And I would very strongly recommend speaking with a licensed professional before going down this endeavor of becoming a landlord. It’s important to understand the differences between being an active and a passive rental property owner and what that looks like versus being able to simply write the expense of a property manager off. And it’s going to really depend on your individual situation. So it makes sense to speak to someone to understand what those differences look like and what may be better for you from a tax perspective. And lastly, guys, this is a kind of a fun slide to close us out. One of the most important things when it comes to being a landlord is just coming in this with the right mindset. And what we mean by that is first and foremost, the tenant is your customer. You should not be actively working against your customer. They are very easy to be displeased and go and voice their opinion online. It’s important that you treat them like a customer just like if you owned an ice cream shop and somebody was coming in to buy something from you. Then you have this mindset and you treat the tenant like a customer. This absolute miracle happens and the property becomes their home. They stay longer. They treat it with respect and they love living there. And that’s really the home run of rental property ownership is creating that dynamic. It starts with mindset and it starts with seeing your tenant as a customer. It’s highlighted a couple of different ways you can do that on the screen there. And this is probably the cornerstone to being a successful landlord. When you are actively working against your customer, it just never results in a great experience for you, for your tenants and for future tenants. So kind of a lighthearted slide to close us out and just something you should really consider. It’s going to please the real estate gods and it’s going to make you a successful rental property owner. I think you’re on mute, Mariah. Sorry about that. Awesome. Thank you so much, Adam. I had seen a couple screenshots happening during the presentation, which is always a good sign. I don’t see any questions coming up yet. We’ll give it a few minutes. If you have any questions for Adam regarding the presentation or just regarding a landlord or something else, please feel free to shoot them in. I see some activity in the chat. So let’s give it a minute, Mariah. Thank you. I’m asking, are you familiar with the new pet rent? Beth, I’m not familiar. Could you can you elaborate a little bit more on your question? I’m not familiar with the new pet rent. Hey, Kevin, absolutely. Our pleasure. Glad it was informative. I wonder if Beth may be talking about AB 2216. Bryce had mentioned this during one of our meetings. If there’s a new law that could be being passed about not being able to ask for security deposits or pet rent. Any more. So from Beth, with the new law going into effect about security deposits, not being more than rent, we are not able to charge a specific pet deposit. So we are now doing pet rent. Didn’t know if property management companies can retain the monies or if it has been released to the owner. Got it. Great question, Beth. I think it’s a little bit more than rent. So just to unpack that a little bit, yes, there’s a new law that’s coming into effect in July. That is going to prohibit rental property owners, property managers from charging more. A security deposit that is more than one month rent. So if you have a property manager that is a certain amount of rent, you can charge that or a certain amount of rent. Or if you have a certain amount of rent, you can charge that separately from the rent or if it’s something owners retain. So here at Good Life, if you had an existing arrangement with your tenant, you know, that’s something we would honor. We have a separate pet program where we charge the tenants a separate fee from the rent and in return offer a $3,500 quote unquote pet deposit that can be used for damages. Every property manager is going to have their own kind of arrangement with regards to pets, but most will honor the arrangement that you currently have with your existing tenant. I hope that answers your question, Beth. I also did, I do know that there was a piece of legislation that was proposed in the legislature that was specifically regarding rent and basically forcing landlords to accept, but I’m not sure if that has actually passed yet, but we’ll certainly keep our eye on that and keep you guys posted there. Thank you, Adam. Kevin is asking how long from start to finish as a typically take to get a tenant into your home. Considering all of the paperwork, cleaning, walkthroughs, etc. Thanks and go chargers. Yes, go chargers and go Padres as as the baseball season officially is underway here in San Diego and throughout the world as well. That’s a great question, Kevin. I generally tell perspective owners to budget for about one month of total vacancy. That kind of breaks down as follows once you move out of the property, it can take between one to two weeks to get the property cleaned up, you know, painted, do any repairs, clean the carpets, that kind of a thing. And obviously if your place needs less work, it’ll take less time if there’s a big remodel that needs to happen could take slightly longer. And then right now we are seeing properly priced properties renting in that two to three week and frame. So it shocks out to about one month of total vacancy from the time you move out of your property to the time we have a signed lease with a new perspective venture. Thank you, Adam. Faying is asking, how is the rental market right now? Can you give us an update, Adam? Yeah, great question, Faying. So the rental market is still really strong here in San Diego. There’s kind of a couple of dynamics at play, but the main one is just supply and demand San Diego. There’s nowhere left to build here and it’s an incredibly desirable city. So strictly through the supply and demand lens, it’s still a great time to be a rental property owner. We have seen rent soften, you know, slightly from last year during kind of the end of COVID craze, but all in all, we’re still seeing very consistent, very consistently short vacancy periods, tenants staying, you know, on average close to three years. So the rental market in my opinion is great and, you know, I would encourage anyone with a rental property to, you know, not stay on the sidelines, jump in. It’s, it’s a great time to put your place in the market. Thank you, Adam. I think that ties it up for new questions, best says thank you, Adam, and the team, great information. You’re so welcome, Beth, we’re so happy to have you here today. Let’s go ahead and wrap up if there’s nothing else here. All right, guys, well, that’s all she wrote from us here at Good Life. We really appreciate everyone’s stopping by and glad to see that the information was, you know, informative. Thank you, guys, for bringing more of these to you guys too. So subscribe to all of our social stay tuned for more just like this. If you have any other questions, whether it’s about the rental market or, you know, an individual situation with your property, I’ve included all my contact info there. Do not hesitate to reach out to me anytime. I am always here to consult and provide advice and make you the most successful rental property owner you can be. Thanks so much, guys. And Adam, thank you for hosting us today. On the next slide, we’ve got some other resources and links that will lead you to more of our free landlord resources. We encourage you guys to stay up to date with us. As Adam had mentioned, we’ve got more webinars coming up in the future, and we would love to see you there. But thank you all so much for taking the time to join us today. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.