When renting out our property here in Singapore, some of us landlords might prefer to handle the procedures by ourselves instead of hiring an agent. If you have decided to take ownership of that process, it pays to be extra prudent in selecting a suitable tenant. Rental is, after all, a business transaction involving a significant sum of money (and your precious apartment or room).
Many tenants and landlords would not be facing unnecessary problems should they just have clearly stated each other’s expectations in black and white during the initial rental process. Hence, having some formal measures in place for the rental application is essential, for a better understanding of both parties that can certainly prevent potential issues from surfacing in future.
Here are some possible questions you can raise to your potential tenants!
Questions to ask over the phone or online chat avenues
1. Reason for moving: Most of the time, there will be valid reasons such as changing of a job or studying overseas, but you should still be wary of those who might have left because of bad attitude towards their current landlord, or those moving due to eviction at his current rental.
2. When they would be moving: Responsible tenants would often plan early and search for a flat way ahead of their moving date. Requests to move in too soon (tomorrow! or next week!) may indicate poor planning (potentially procrastinators – who might be late for rent payment!). On the other hand, if you are approached by those have just started their house hunt, they might be less likely to commit to the agreement as they have yet to see sufficient places to make a decision.
3. Monthly Income: You want to be aware of your tenant’s financial situation to ensure that he/she is well able to afford your place! As a guideline, your tenant’s monthly salary should be about 3 times the amount of monthly rent you are charging. A red flag is waving at you if they ask to pay the security deposit in installments!
Questions to include in the Rental Application Form
It would be ideal to have some sort of a Rental Application Form and request your tenant to fill it up during the house viewing, prior to the signing of any papers or making of payment. This form would enable you to obtain information such as the tenants’:
1. Personal particulars & contact details
2. Employment history and proof of income
3. Residence History
4. Miscellaneous
Though the idea of having an application form might seem too intimidating, do not think that it is an overkill! As mentioned, rental is ultimately a business transaction, hence it is always better to have these procedures done in a more official manner. You do not have to worry about deterring potential tenants due to this, as those with clean profiles and thus have nothing to hide from you would definitely not mind declaring such information. Of course, do request for their authorization before you call up their previous landlords or their employer, should you want to make certain verifications.
Though it may seem tedious, it is recommended to follow through with these procedures, since you do want to make the most informed decision when choosing a tenant.
With that, Nestia wishes all home owners a successful rent!
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