Tenant screening is important.
Every landlord, apartment manager or property management company needs to understand the critical nature of tenant screening. If you are new to landlording, property management or income property ownership, take the time to learn how to practice proper tenant screening. Ultimately, tenant screening may well determine the overall success or failure of your investment.
Performing a tenant background check should include the following:
- Credit history
- Address history
- Eviction Background
- Previous Criminal Activity.
- Employment Status (Past & Present)
- Property Walk-Thru & Interview
There are many Tenant Screening services available to property managers, landlords, and others in the real estate and rental industry. By utilizing these tenant screening services it will make your job easier and your selection process more accurate.
Not to mention that performing these checks will improve your bottom line and costs can easily be transferred over to tenants – costing you no out of pockets expenses. Here are a few reputable service companies that you can use:
As a Landlord or property manager, using a tenant screening service is an effective way to minimize the risk of renting to bad tenants. As investors you should have a plan that incorporates a due diligence process of screening each tenant and adult resident. Doing so will help you prevent fraud and reduce income loss.
The last part of your tenant screening plan should include a property walk through and onsite interview. There are many things that just can’t be conveyed via a tenant screening report, application or over the phone conversations. For example:
- Does this person have a quiet or clean demeanor?
- Their reaction to the “House Rules” or “Restrictions”
- Punctuality will tell alot about a person’s habits and dealing with others
- Would they or their family be a good fit for the neighbors?
We cannot redline or discriminate any qualified tenant, but a reasonable businessperson with common sense can easily use an effective tenant screening policy to select the best rental and leasing applicants. Minimizing the risks will always maximize your profits in this case.