The Ultimate Beginners Guide to Tenant Screening with Lucas Hall | Rookie Podcast 06

TL;DR

Lucas Hall shares expert tenant screening tips for landlords.

Transcript

this is real-estate rookie show number six my name is Ashley Kerr and I am here with my co-host the gap model mr. Felipe Mejia now the reason you're saying that is I was in Daytona Florida I was quarantine myself I was listening to our leaders and making sure that I was you know say you know in a safe distance from others but I was on vacation so I... Read More

Key Insights

• Lucas Hall emphasizes the importance of tenant screening, sharing that he has never faced eviction issues due to his thorough process.
• He highlights the difference between a tenant's ability and willingness to pay rent, stressing the importance of both factors.
• Lucas manages properties remotely, using technology for virtual tours and online applications, a practice he finds increasingly relevant during the COVID-19 pandemic.
• He advises landlords to conduct pre-screening calls to save time and ensure prospective tenants meet basic requirements before showing the property.
• Lucas uses Cozy for tenant screening, which includes credit checks, background checks, and verification of income.
• He discusses the importance of checking references, particularly from previous landlords, to assess a tenant's payment history and property care.
• Lucas advises landlords to be flexible with payment schedules during financial hardships, such as offering weekly payments.
• He suggests cash-for-keys as an alternative to eviction, providing tenants with funds to move out without legal proceedings.

Questions & Answers

Q: What is the most important factor in tenant screening according to Lucas Hall?

Lucas Hall emphasizes that the most important factor in tenant screening is ensuring that tenants are both able and willing to pay rent. He distinguishes between the ability to pay, which involves having a stable income or savings, and the willingness to pay, which involves the tenant's intention and reliability in making payments consistently.

Q: How does Lucas Hall manage his properties remotely?

Lucas Hall manages his properties remotely by leveraging technology, such as virtual tours and online applications. He conducts pre-screening calls to ensure prospective tenants meet basic requirements and uses Cozy to facilitate the application process, allowing him to manage properties across different states efficiently.

Q: What advice does Lucas Hall give for handling tenants who can't pay rent during COVID-19?

Lucas Hall advises landlords to be flexible with payment schedules for tenants facing financial hardships during COVID-19. He suggests offering weekly payment options instead of monthly ones to make rent more manageable. Additionally, he encourages open communication and exploring alternative solutions like cash-for-keys to avoid eviction.

Q: What is Lucas Hall's stance on accepting cash payments for rent?

Lucas Hall advises against accepting cash payments for rent due to the risks involved, such as theft and lack of documentation. He prefers using online payment systems that provide a clear record of transactions and reduce the need for physical cash handling, thus ensuring a safer and more transparent process.

Q: How does Lucas Hall handle tenant references during the screening process?

Lucas Hall places significant importance on tenant references, particularly from previous landlords. He contacts both the current and prior landlords to verify the tenant's payment history, property care, and overall reliability. This helps him assess the tenant's past behavior and likelihood of fulfilling lease obligations.

Q: What is Lucas Hall's approach to tenant screening for students or individuals with limited credit history?

For students or individuals with limited credit history, Lucas Hall requires a cosigner who meets the financial qualifications. He looks for a cosigner with a stable income and good credit report, ensuring that the tenant has financial backing. He also accepts offer letters for upcoming employment as proof of future income.

Q: What does Lucas Hall suggest for landlords facing potential evictions?

Lucas Hall suggests considering cash-for-keys as an alternative to eviction. This involves offering tenants a financial incentive to vacate the property voluntarily, which can be more cost-effective and quicker than going through a formal eviction process. This approach helps avoid legal fees and potential damage to the property.

Q: How does Lucas Hall ensure he complies with fair housing laws during tenant screening?

Lucas Hall emphasizes the importance of adhering to fair housing laws by maintaining consistent screening criteria for all applicants. He advises landlords to familiarize themselves with local regulations and protected classes, ensuring that all applicants are evaluated based on the same standards to prevent discrimination and legal issues.

Summary & Key Takeaways

• Lucas Hall, founder of Landlordology.com, shares his tenant screening process, emphasizing the importance of selecting tenants who are both willing and able to pay rent. He has been a landlord for over 15 years without encountering eviction issues, attributing this to his thorough screening process.

• Lucas manages properties across multiple states and uses technology to conduct virtual tours and online applications, which have become even more crucial during the COVID-19 pandemic. He advises landlords to conduct pre-screening calls to ensure prospective tenants meet basic requirements before showing the property.

• He uses Cozy for tenant screening, which includes credit and background checks. Lucas also discusses the importance of checking references from previous landlords and being flexible with payment schedules during financial hardships. He suggests cash-for-keys as an alternative to eviction.