Even the average landlord can earn close to six figures annually in San Diego, CA. According to ZipRecruiter.com, they make an average of $92,953 yearly, with the highest earners earning as much as $160+ thousand!
All those figures should give you something to look forward to if you're about to or have recently become a landlord/property investor in San Diego County. However, to maximize your property's profitability, you must do your due diligence, including conducting comprehensive tenant screening. Remember: If renters don't pay on time or if they mess up your property, you won't get paid, either, and you'll lose money, too.
The experts at McLain Properties have shared tenant selection and screening tips in this landlord guidebook, so read on.
1. Confirm Income and Employment
One of the most crucial tenant verification methods is confirming an applicant's income and employment. It allows you to establish the identity of the people you might rent out and welcome to your property. It also lets you verify an applicant's:
- Claim of working for the employer they've listed
- Income stability
- Ability to pay rent
To perform income and employment verification, you can request applicants to submit recently dated:
- Pay stubs
- W2s
- HR-issued certificate of employment
- Tax and bank statements
2. Check Credit Scores and Reports
Credit checks allow you to learn more about prospective renters' financial behaviors, particularly as borrowers. Even if they earn a lot, they may still not have enough to pay rent if they also owe a lot. Credit-related issues can make tenants more likely to fail to pay rent, the most common cause of evictions in San Diego County.
For that reason, be sure to consider the following credit check essentials:
- Credit score
- Debt-to-income ratio
- Payment history, especially the number and frequency of late and past-due payments
- Negative items like defaults and accounts in collections
3. Conduct Criminal Background Checks
In a 2024 press release, The Whitehouse reported that around 70 million Americans have criminal records. To determine if your rental applicants are among these individuals, run criminal background checks on them all.
You shouldn't automatically reject the applicant if the background check process reveals convictions. Instead, you must:
- Consider the severity and nature of the crime committed
- Gauge if the crime committed impacts qualifications as renters
- Assess if the applicant poses potential safety and security risk to your property and others
4. Verify Previous Landlord References
Part of your rental application process should be to require previous landlords' names and contact details. You want this information so you can call and ask them pertinent questions about your prospective tenants':
- Payment behavior (e.g., always paid rent on time vs. always paying late)
- Respect towards the rental property and neighbors
- Adherence to their previous lease agreement's terms and conditions
Let McLain Properties Handle Tenant Screening for You
Remember: Comprehensive tenant screening involves checking income sources, employment status, creditworthiness, criminal background, and rental history.
McLain Properties can conduct all those screening procedures (and more!) on your behalf. As a full-service property management firm in business since 1978, we have the skills, knowledge, and expertise to help you find high-quality tenants and manage your rentals in San Diego County, CA.
Reach out to our team of real estate and property management professionals today! We look forward to answering all your questions and providing you with a complimentary property analysis.
