Are you tired of dealing with tenant issues that could have been avoided with clear communication from the start? In the latest episode of the Rent Perfect podcast, hosts David Pickron and Scot Aubrey dive into a topic that might not be new but is certainly crucial—establishing and enforcing detailed rental criteria. If you’re a landlord or property manager, this episode is a must-watch as it reveals how having a written, detailed criteria can save you from headaches and help you manage your rental properties more effectively.

The Power of Detailed Rental Criteria

The Foundation of Successful Tenancy: Detailed Criteria

In the world of property management, clear communication is key. David Pickron and Scot Aubrey open the episode by sharing their personal experiences with tenant issues that could have been easily avoided if they had communicated their expectations clearly from the beginning. They stress the importance of having a rental criteria that isn’t just in your head but is thoroughly documented and shared with potential tenants.

One of the main points discussed is the difference between having vague criteria that’s not properly communicated and having a detailed, written set of guidelines that both you and your tenants can refer to. Without clear criteria, you’re left “flying by the seat of your pants,” as David puts it, which often leads to misunderstandings, unnecessary conflicts, and even legal challenges.

Why You Should Share Your Criteria—Three Times

David and Scot emphasize that it’s not enough to simply have a rental criteria; you need to actively share it with your tenants multiple times. They outline a three-step process for doing this:

At the Property Listing:

When you list your property, whether online or elsewhere, include key aspects of your criteria, such as minimum credit scores, pet policies, and no-smoking rules. This way, prospective tenants can self-screen before even contacting you, saving both parties time and effort.

During the Physical Showing:

When showing the property, hand potential tenants a copy of your criteria. This is an opportunity to ensure they understand what you’re looking for in a tenant and to address any questions or concerns they might have on the spot.

With the Application:

Before they apply, send them the criteria one more time, usually attached to the link for your online application. This final step ensures that they’re fully aware of what you expect and that they meet the requirements before investing time and money into the application process.

The Legal Side of Rental Criteria

An essential part of crafting your rental criteria is ensuring it aligns with fair housing laws. David and Scot remind landlords that while you can establish rules like a minimum FICO score or a no-pets policy, you must avoid anything that could be seen as discriminatory against the seven protected classes under fair housing laws. They recommend having an attorney review your criteria to make sure you’re not inadvertently violating any legal standards.

Please note if you have rental property in the city of Kansas City Missouri – DO NOT DO THIS WITH THOSE PROSPECTIVE TENANTS AS IT IS AGAINST THE LAW! If you don’t know why its against the law, then be sure to join us at the October 15Th, 2024 MAREI Meeting with Attorney Julie Anderson!

Why Consistency Matters

One of the key takeaways from the episode is the importance of applying your criteria consistently across all applicants for a specific property. This consistency not only helps avoid accusations of discrimination but also strengthens your position if a tenant disputes your decision later. The hosts point out that having a detailed and consistently applied rental criteria acts as a foundation for a good landlord-tenant relationship and makes the management process smoother and more transparent.

Screening Criteria Guidelines: A Starting Point for Landlords

To help you get started, we’re including a Rent Perfects Rental Criteria Guidelines to get you started. This template covers essential elements like credit score requirements, income verification, rental history, and other key factors. By embedding this sample criteria into your tenant screening process, you’ll set clear expectations from the outset, leading to fewer misunderstandings and more successful tenancies.

Conclusion

Establishing and enforcing a detailed rental criteria is not just about protecting yourself as a landlord; it’s about creating a clear, fair, and consistent process that benefits both you and your tenants. By following the steps outlined by David and Scot, you can avoid common pitfalls and foster positive, long-lasting relationships with your tenants. Be sure to watch the full episode to hear all their insights, and feel free to download our sample screening criteria to help streamline your tenant selection process.