Finding the most qualified tenant for your Las Vegas rental property is a crucial first step in ensuring a positive and profitable rental experience.
Before you can screen for good tenants, you have to produce a rental application.
The rental application is your first line of defense in choosing a tenant who will perform the way you expect. You’ll have the opportunity to gather essential information that can help you make an informed decision about who you’ll have living in your property.
You’ll want to collect an application fee, too, to cover the background checks that you’ll have to conduct while screening a tenant. There’s no specific limit in Nevada, but you shouldn’t charge an exorbitant fee that could lead to complaints. Most landlords in Nevada charge $30 to $60 per applicant.
What exactly should a comprehensive rental application include? As Las Vegas property managers, we’ve screened a lot of rental applications over the years. We’re here to help you rent with confidence by providing a guide to successful and complete applications.
Here’s what you want to include.
Personal Information
The rental application should start with basic personal information. Collect your applicant’s full legal name, phone number, email address, and current residential address. This information will help you perform background checks and communicate effectively with the applicant throughout the screening process. You should be collecting an application from any tenant who is 18 years of age or older.
You also need to collect a social security number on the application. While it’s sensitive information, a SSN is essential for conducting credit and background checks. Ensure that your application form and processes comply with local privacy laws and data protection regulations. You need to get permission from your applicant, on that application, to run these background and credit checks.
Employment and Income Verification
Next, you’ll want to gather information about the applicant’s current employment, including their employer’s name, job title, work address, and contact information for a supervisor or HR department who can confirm all of this information. Such information will help you verify their employment status and stability.
Income is more important than employment. Request the applicant’s monthly or annual income and ask for supporting documents such as recent pay stubs, bank statements, or a letter from their employer. This information will help you assess whether they can afford the rent.
Rental History
Understanding an applicant’s rental history is also critical in the screening process, which means you want to gather as much of it as possible on the application. Request details of the applicant’s rental history for at least the past five years, including previous addresses, landlords’ contact information, and the duration of each tenancy. This will help you gauge their rental stability and history.
Ask for references from previous landlords. Contacting these references can provide valuable insights into the applicant’s behavior as a tenant, including their payment history, property upkeep, and any issues they may have had.
Background and Credit Checks
A credit report provides a detailed view of the applicant’s financial history, including their credit score, outstanding debts, and payment history. A good credit score can indicate financial responsibility, while a poor score may raise red flags. You want to conduct a nationwide eviction search as well, to ensure there’s not a history of evictions following your applicant around.
Conducting a criminal background check is also a good idea. You want to ensure the safety and security of your property and other tenants. This check will reveal any past criminal activity that might be relevant to your decision.
Pet Information and Details
If you allow pets in your rental property, request information about any pets the applicant intends to bring. This should include the type, breed, size, and age of the pet. Some landlords also ask for vaccination records and references from previous landlords regarding the pet’s behavior. This can provide extra protection against pet problems.
Include a section where the applicant agrees to abide by the property’s pet policy, which can help prevent future disputes.
Information on Additional Occupants
If other individuals will be living in the rental unit, gather their names, ages, and relationship to the primary applicant. This information helps you ensure that your property does not exceed the occupancy limits and allows you to know who will be residing in your property. Children, for example, will not fill out their own applications, but you still want to know that they will be in your property.
Consent and Authorization
Include a section where the applicant provides written consent for you to conduct background and credit checks. This is a legal requirement and ensures transparency in the screening process.
Ensure that the applicant signs and dates the application. This verifies that the information provided is accurate to the best of their knowledge and gives you authorization to proceed with the necessary checks.
How to Effectively Review Applications
When reviewing multiple rental applications, it’s essential to stay organized. Create a spreadsheet or use property management software to compare key details such as income, rental history, and credit scores. This will help you easily identify the most qualified applicants.
Look for red flags. We know what those are as Las Vegas property managers because we screen so many tenants. Always be on the lookout for potential red flags, such as inconsistencies in the information provided, a history of late payments, or any eviction records. If you’re going through the credit report and you notice that there is money owed to former landlords or apartment communities, that’s a huge red flag.
An unwillingness to provide you with the requested information is also problematic. Don’t accept applications that are incomplete. These can be indicators of potential issues that might arise during the tenancy.
Legal Considerations for Landlords
It’s important that you follow all federal, state, and local laws when it comes to screening applications, managing personal data, and being transparent with your tenants.
Federal laws, such as the Fair Housing Act, prohibit discrimination based on race, color, religion, sex, national origin, familial status, or disability. Not screening each application consistently and against a standard set of criteria can open you up to fair housing mistakes. Make sure you’re following the same, objective screening process for each tenant.
It’s essential to familiarize yourself with the regulations specific to your state and municipality to ensure compliance and avoid legal repercussions.
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Create a Strong Lease
A well-drafted lease or rental agreement is also an important part of protecting both the landlord and the tenant. The agreement should clearly outline the terms and conditions of the tenancy, including rent amount, payment due dates, late fees, security deposit details, maintenance responsibilities, and the duration of the lease. It’s advisable to have a lawyer review the lease to ensure it meets legal standards and effectively covers all necessary aspects.
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Security Deposits
Once an application has been approved, you’ll need to talk to your new tenant about paying the security deposit and preparing to move in. Make sure you understand and adhere to all security deposit laws and rules to avoid legal disputes. Typically, the guidelines specify how much can be collected, how the deposit should be stored, and the timeframe within which it must be returned after the tenant vacates the property. You cannot ask for a security deposit that’s more than the equivalent of three months’ rent, for example. That’s the law in Nevada.
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Anti-Discrimination Laws
In addition to the Fair Housing Act, landlords must also comply with other anti-discrimination laws that protect tenants from bias based on various factors. Violating these laws can lead to severe penalties, including fines and legal action. Training and educating yourself and any staff members on these regulations can help prevent unintentional discrimination.
A well-structured rental application is a critical tool for landlords in the tenant screening process. By including these essential elements, you can gather comprehensive information about potential tenants, reduce the risk of problematic tenants, and increase the likelihood of a successful and smooth rental experience.
A solid rental application does more than protect your investment—it sets the stage for a positive landlord-tenant relationship built on clear expectations and mutual trust.
By implementing these practices, you can streamline your tenant selection process and ensure that you find the right fit for your property.
We know that sometimes it can look easier than it actually is. Screening tenants effectively requires a lot of time and a lot of knowledge. It’s easy for us, thanks to our experience, our resources, and our technology. If you’d rather have a professional Las Vegas property manager screen your tenants and manage your applications, you’ll find that the rental process is a lot less stressful. It’s also a lot less risky.
We can help. Whether you have questions about leasing or you’d like to talk about some of the management services we can provide, please contact us at New West Property Management. Our team expertly manages residential rental homes in Las Vegas and throughout Clark County, including Henderson and North Las Vegas.
