Resident Screening

Thorough resident screening is the single most important thing you can do to improve your investment. Resident screening is not without its problems. Screenings must be fair and consistently administered so as not to run afoul of Fair Housing laws. Also, screening criteria that are too strict for the property can result in long vacancy times or never renting the property at all. Here are the criteria we use.

• Everyone over 18 must apply and sign the lease.
• Felonies must be older than 10 years.
• Certain violent felonies are never approved.
• Drug charges (regardless of conviction) must be older than 5 years.
• No registered sex offenders.
• Must qualify on credit.
• Income of the household must equal 3 times the rent.
• Previous landlord references must be clean (rent paid on time, no damage to the property, no trouble with the law).
• Applicants must be over 21 or they need an older cosigner.
• In addition, we also follow the Sioux Falls city zoning ordinance that requires no more than three unrelated people can live in a single-family housing unit.

These qualifications have served us well. We use the same qualifications for each applicant, which steers us clear of any discrimination claims and lawsuits. The requirements are also more strict than what is required by properties that are part of the Sioux Falls Crime Free Program. That being said, it doesn’t guarantee tenant behavior. To that end, we require the maximum security deposit allowed under South Dakota law. Add to that our optional Eviction Protection Plan, and you are about as bulletproof as you can get while still staying within the law and renting out your property in a timely manner.