Tenant Screening has real advantages for landlords. From reducing your risk to and tenant turnover, to improving everything from cash flow, profits, and your chances of sleeping at night ” tenant screening has become an integral component of smart landlords standard procedures.
Why Prescreen Tenants?
You are putting yourself in a great danger and even a financial risk if you would just lease your property to a complete stranger. There is a need to know your prospective tenants which includes their previous rental, credit and job history, thus this is essential in determining if there are good when you’re taking a risk.
Landlord Risks
Your new tenant could pay rent late”or not at all. They might steal or damage your property. They could abandon your rental unit with no notice, owing you back rent. Weve all heard stories of bad tenants taking appliances and light fixtures when they move out”you dont want that to happen to you!
And there is risk to surrounding neighbours, as well. Being unaware of a person’s criminal history before placing them in your rental property is just not a good idea. Not only are neighbouring adults and children at risk of being harmed, but you, as the landlord, could be held liable for your tenant’s actions. In a litigious society, mitigating your chances of being sued is absolutely necessary.
What Landlords Need to Know
Is the prospective tenant employed? If so, how long have they been with their employer? Job stability is a favorable sign. How strong is the tenants credit history? Are there liens and judgments against them? What about previous evictions and other legal problems? Has the prospective tenant been convicted of any crimes”and if so, what was the offense?
What a Tenant Screening Report will Reveal
You need to pre-screen your tenants to show that they have an approving history, thus you know their previous landlords, so that you may also assess if they have a history of late payments or evictions.
Is the potential tenant employed? If yes, how long have they been with their boss? Having a job is a positive sign. How well-built is the tenant’s credit history? Are there liens and judgments against them? What about prior evictions and other legal problems? Has the prospective tenant been convicted of any crimes and if so, what was that all about?
To ensure that you have the prospective tenant’s information you must have a criminal background check, thus, you will be able to know the precise name, Social Security Number and current address. It will also ponder you about his criminal record in state, country and national level (subject to state law)
You’ll know whether the applicant has been convicted of a crime or not, along with the type of offense, date, and locality. Sex offenses are also reported, but information varies by state. Finally, tenant background checks reveal any aliases used incarcerations, and whether the potential tenant has been placed on federal terrorist watch lists or is listed as an international narcotics trafficker.
Things to Remember
You must obtain the applicants permission to conduct a tenant background check”which can be a standard part of your application procedure. The notification must be a separate document, however. Also, all information you learn from a credit report must be held in strictest confidence, and never shared with third parties. Your applicant may have a right to the report”check your states guidelines and the Fair Credit Reporting Act (FCRA) to be sure you are compliant. If you reject an applicant for credit reasons, you must advise them in writing. E-Renter can handle your background screening to ensure you are within the guidelines of the FCRA.
Tenant Screening has become an essential component of smart landlords’ standard procedures.
