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New York is one of the states with the highest number of renters. It’s no wonder why real estate investors love this state! However, not many investors know there’s great potential for rental investments outside of the Big Apple, like Westchester County, which is centrally located within the New York metropolitan area.
Westchester County provides its residents an escape from the big city. This is why it’s become incredibly popular among renters who commute regularly to NYC and those who simply want to take a break from the bustling city. Additionally, homes are more affordable than in the Big Apple, meaning you can get more for your money!
If you’re planning to invest in a rental property in Westchester, you must ensure you find reliable tenants. Without proper screening, you may unknowingly rent to individuals with poor rental histories, leading to late or missed payments, property damage, holdover tenancies, and legal disputes.
In this article, our experts at Librett Real Estate Group will tell you everything you need to know about screening tenants in Westchester County, NY. Let’s dive in!
A Step-by-Step Guide to Screening Tenants
Screening tenants will help you protect your investments by ensuring you select responsible, reliable renters. Additionally, effective screening reduces turnover rates and creates a stable rental environment. But how do you screen tenants effectively? Here’s what you should know before screening potential tenants:
1. Familiarize Yourself With New York’s Tenant Screening Laws
Before you can begin the tenant screening process, you must familiarize yourself with New York's landlord-tenant laws. Understanding your and your tenant’s rights and responsibilities is key to a successful rental experience.
Additionally, the state of New York has specific rules in place regarding the screening process, which include limits on application fees, protections against discrimination, and regulations on background checks. Here’s what you should know before screening potential tenants:
Application Fees: Landlords in New York can charge an application fee of $20, or up to the cost of background and credit reports, whichever is lower. If, for any reason, the fee exceeds $20, then they’ll have to provide applicants with an itemized receipt detailing the cost of any background and credit checks done.
Keep in mind that New York landlords cannot charge any additional fees related to the application process, such as administrative or processing fees.
Fair Housing Act: You must comply with both federal and state fair housing laws throughout the leasing process, including tenant screening. This means you cannot turn down applications based on the renter’s race, color, sex, disability, religion, national origin, age, marital status, military status, sexual orientation, or gender identity.
The best way to comply with fair housing laws is by having a standardized screening process and choosing tenants based on objective criteria.
Source of Income Protections: In addition to federal fair housing regulations, New York rental laws prohibit landlords from rejecting potential tenants based on their source of income. When screening potential tenants, you must assess their income based on stability and sufficiency to cover rent, rather than its source.
Following these regulations will help you prevent potential lawsuits, including claims of discrimination or privacy violations. Moreover, compliance with screening laws also builds trust and credibility, fostering a better landlord-tenant relationship.
2. Set Your Screening Criteria
Before you begin screening tenants, you must first ask yourself what you’re looking for in a renter. Of course, you’ll want someone who has the means to pay rent and has proven to be a good renter. You can start by establishing basic criteria such as a minimum income, a stable job or source of income, a good credit score, and no criminal records.
Additionally, you should consider your property’s unique needs to set the criteria. By setting clear standards from the beginning, you won’t waste your time on applicants who don’t meet your basic requirements.
3. Pre-Screen Applicants
If you advertise your Westchester rental successfully, you’ll be able to attract a wide pool of potential tenants. The only downside is that this will mean you’ll have to go through more applications to find the right fit. Luckily, you can save time and weed out unsuitable renters by pre-screening applicants.
Pre-screening tenants is as simple as contacting applicants as soon as you receive their application. By asking them about the reason for their move, their move-in timeline, and their long-term plans, you can gauge whether they’ll be a good fit.
By communicating your criteria and requirements for tenants, you can ensure that you’re both on the same page. With just one simple call, you could weed out applicants who don’t meet your requirements, leaving you only with the best candidates.
4. Review the Applications and Make a Decision
Having interested candidates fill out an application form will provide you with all the information you need about them. This includes their full name, employment or income information, references, and consent to run any needed checks.
Once you have this, the next step is to review the information you have, which includes the following tasks:
Running background checks: This will help you ensure tenants have a clean rental history, without any criminal or eviction history.
Verifying their income and employment: This will help you confirm the tenants have a stable job and the financial resources to meet their rental obligations.
Contacting references: Speaking with former landlords is one of the best ways to learn whether someone is a good renter. Additionally, contacting work references will help you ensure applicants don’t lie about their employment status.
Carefully reviewing each applicant’s profile and comparing it with your screening criteria will help you find the best fit for your rental. Once you’ve found your ideal tenant, contact them to let them know your decision and clarify the next steps of making the lease agreement.
It’s also a good idea to inform the rest of the applicants that they have been rejected.
Bottom Line
Tenant screening is a crucial step in the leasing process. By reviewing applicants’ credit, income, criminal background, and eviction history, you’ll be able to screen tenants effectively and without added stress.
If you need further help screening tenants for your Westchester rental, contact Librett Real Estate Group. Our team of dedicated property managers is ready to help.
