Tenant Rental History Verification

Communicate the Approval Promptly and Clearly

You should inform the approved applicants as soon as possible after approval. A simple written approval letter or email confirming approval of their rental application is sufficient. This should contain the following details:

• The approved applicant’s name
• The unit address
• The proposed lease start date
• Any conditions to the approval of the applicant
• A specific amount of time for the co-applicant to accept the approval terms.

This also is a good time to let approved renters know how quickly you expect them to sign and move in. Many qualified applicants will have several applications considered, so it is wise to respond in a timely manner to ensure they will be your tenant.

Additionally, where co-applicants have been denied based upon information contained within a consumer report, landlords must comply with the requirements of the Fair Credit Reporting Act with respect to the issuance of an adverse action notice.

Finalize the Lease Agreement

Take the time needed to make sure the lease works well for both you and your tenant. Once you have negotiated all of the terms and conditions, review the entire lease with your tenant together, section by section, so you both understand each key term before signing.

• Lease duration and renewal terms
• Monthly rent amount and due date
• Late fee structure
• Pet policy and any associated deposits or fees
• Maintenance responsibilities
• Rules regarding subletting, guests, and alterations

Templates for leases can be found through local landlord associations as well as from legal services. They are usually written to comply with the landlord-tenant laws of a state, and even local cities and towns. A good place to start looking for information regarding requirements for leases in your state is at the Nolo legal resource library.

Be sure to distribute complete and final versions of your lease agreements to tenants once signed. This would include digital lease agreements that are executed using Electronic Signature platforms to verify that the platform in use complies with the requirements of the Electronic Signatures in Global and National Commerce Act (also known as the Federal Electronic Signatures in Global and National Commerce Act or E-Sign Act).

Collect Deposits and First Payments

Be sure to collect all money due to you prior to the tenant moving into your rental property, including:

• Security deposit
• First month’s rent
• Last month’s rent, if applicable
• Pet deposit or pet rent, if applicable

Keep a record of all payments received from tenants for rent and for damages to the property. Security deposit rules vary significantly from state to state, including maximum amounts, allowable deductions, and the timeline for returning deposits after move-out. Be sure to familiarize yourself with the laws of the state in which your rental property is located before accepting any security deposit from a tenant. Many states, including Oregon, also require security deposit funds to be held in a separate account from your operating funds.

Document the Property Condition Before Move-In

An inspection of the property before the tenant moves in is one of the most important steps a landlord can take to avoid potential problems. It is often overlooked or not completed in sufficient detail. A written checklist should be completed by both parties with reference to photographs and/or video and signed by both prior to the tenant taking occupation of the property.

It serves as proof of the condition of the property and will be used during move-out inspection as the basis of returning the deposit. Both parties should sign the report and retain a copy for their records.

Many property management companies conduct move-ins systematically in order to limit disputes upon vacating. Companies like Next Step Property Management approach this by documenting property conditions, setting up utilities, and communicating with tenants in the days following their move-in.

Set Expectations on Maintenance and Rent Payment

Make sure your tenant knows the essentials before or on the date of move-in: how to submit a maintenance request and what counts as an after-hours emergency, the preferred payment method for rent and where payments should be sent, who you are and how to reach you, your office hours and after-hours emergency contact, and any building-specific rules like trash pickup days or where to park.

Consider putting all of this in a welcome letter for your new tenants, or even a full tenant handbook, to cut down on the amount of time you spend fielding basic questions later on.

The Handoff Into Ongoing Tenancy

Following a structured onboarding process shows your tenant that you value the relationship from day one. A smooth move-in kicks off your relationship on the right foot and helps create a strong foundation for the rest of the tenancy. Tenants who are informed and respected from the outset will typically communicate effectively with you throughout the tenancy, pay rent on time, and stay longer.

Investing a few hours up front to organize a smooth move-in will yield returns for the rest of the lease.