There is a real advantage for landlords in terms of Tenant Screening. Tenant screening has become an integral component of smart landlords standard procedures. From reducing your risk to and tenant turnover, to improving everything from cash flow, profits, and your chances of sleeping at night are just a few good example.
Why Prescreen Tenants?
Because when you lease your property to a complete stranger, you are putting yourself at great financial risk. Knowing your prospective tenants previous rental, credit and job history is essential when determining if they will be an acceptable 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. We have all heard stories of bad tenants taking appliances and light fixtures when they move out you do not want that to happen to you!
And theres risk to surrounding neighbors, as well. Being unaware of a persons criminal history before placing them in your rental property is just not a good idea. Not only are neighboring adults and children at risk of being harmed, but you, as the landlord, could be held liable for your tenants actions. In a litigious society, mitigating your chances of being sued is absolutely necessary.
What Landlords Need to Know
Is the prospective tenant working? If so, how long have they been with the company? Being employed favorable sign. How strong is the tenant’s credit history? Are there liens and judgments against them? What about earlier 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
Prescreening tenants will show whether your applicant has a favorable history with previous landlords, allowing you to avoid tenants with a history of late payment or evictions.
Tenant screening will reveal whether the prospective tenant pays his or her bills on time, including credit cards and loans. It will also reveal outstanding judgments or bankruptcy filings, as well as previous addresses to compare with those supplied on the application.
A tenant criminal background check will ensure that your prospective tenants information is correct”such as name, Social Security Number, and current address. It will also tell whether the person has any criminal record at the state, county, 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 authorization to carry out a tenant background check which can be a standard part of your application method. The notification must be a separate document, however. Also, all information you find out 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 refuse 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 integral component of smart landlords’ standard procedures.