by Linda Rolandis
In today’s world, crime and corruption is at an all time high and landlords need to feel safe and secure when the key to their property is being handed over to a stranger. There has been a steady increase in tenant fraud, involving property damage, unpaid monthly payments, criminal activity, and false credit reports. Tenant screening is an essential process to ensure the prospective renter qualifies to live in the property. Proper screening involves many different aspects, some of the most important being discussed here.
1. Obtain adequate identification from the tenant. This step is a first round screening attempt to match the entries on the rental application for verification. Names, addresses, social security numbers (where applicable) should match and be double-checked for accuracy. Adequate identification includes drivers licenses, birth certificates, or a valid US passport.
2. Require the tenant to fill out an extensive rental application. The application should include at a minimum the name, current and previous addresses, primary and secondary phone numbers, work and salary information, and bank accounts. Also included should be a section on credit history, with questions directly related to their ability to make payments with their current salary and expenses. In addition, the prospective renter should be able to list at least two references the landlord can contact for further verification. These items are essential; the rest is up to the jurisdiction of the landlord.
3. The most important aspect of tenant screening involves obtaining accurate tenant background checks. These reports will detail extensive information involving issues such as criminal activity and sex offender status. It will also outline the same information provided on the rental application which can be compared and evaluated. In addition, the check should include nationwide arrests and activity, not just in the state of application.
The background check will also provide information relating to previous addresses, employers, and alias information. As stated before, it is imperative to compare these reports with the rental application for accuracy. If these records do not match, there should be some concern and proper action should be taken.
4. Obtaining a credit history is imperative and should be included with the tenant background check. These reports will list the future tenant’s credit mishaps, late payments, bankruptcies, and previous addresses. This information should be a major part of the decision-making process.
Sometimes landlords neglect to run a background check due to the fees involved. In the real estate market, it is a common, if not a mandatory practice to charge the renters the fee for the check in the rental application fee. All fees should be paid upfront and should cover all aspects of the process. The landlord is not responsible for these fees. If the renter complains, then a landlord should consider this a part of the screening process, and should seriously consider the character of this individual as a possible tenant.
Whether you are the landlord of a single unit or an extensive complex, tenant screening is not only a good practice, but it will save you money and time in the long run. Good renters are hard to come by and unfortunately there are more horror stories than good. You do not have to be one of those victims. Simple tenant screening with tenant background checks will give you all of the information you need to make the right decision.
About the Author:
Guard your family from tenant fraud. Get a tenant background check today! Avoid the loss of time, money, and property value. Find out how to prevent the common pitfalls with proper tenant screening.
