Landlords with empty properties should maintain stringent credit standards –even if it means foregoing rental income,according to The National Association of Independent Landlords.
With the nation awash in vacant properties,a significant number of landlords now say they are willing to consider applicants with poor credit. But lowering criteria just to sign a lease is as unwise as ever,cautions Tracey Benson,president of The National Association of Independent Landlords.
“Remember,taking unnecessary chances led to this financial meltdown in the first place. People who dodged the bullet should stay the course,”Benson says. “Banks haven’t eased up on their lending standards,so neither should landlords.”
Running a thorough background check is essential. The National Association of Independent Landlords urges property owners to:
- Verify employment and salary. An applicant’s monthly income should be at least triple the amount of the rent.
- Corroborate rental history. Confirm it is the actual landlord giving the reference,not a friend or relative posing as such.
- Avoid applicants with a history of collections,evictions and judgments.
Landlords are better off refusing bad applicants than leasing to someone who will be unable to make the rent.
“As a landlord,you don’t want to put yourself in a position where you can’t pay your own bills,”Benson says.
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