Real Estate

The Reason why Every Landlord needs Tenant Screening?

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. Weve all heard stories of bad tenants taking appliances and light fixtures when they move out”you dont want that to happen to you!

For the surrounding neighbors there are also risks to be taken. It is not a good idea when you are unaware of the person’s criminal history before placing them in your rental property. You are not only putting your neighbors in a great risk both adult and children, but you will be held liable for your tenant’s action. In a litigious society, mitigating your chances of being sued is absolutely necessary.

What Landlords Need to Know

Is the potential tenant employed? If yes, how long have they been with their boss? Having a job is a positive sign. How strong 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 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.

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.

You must ensure that you have your tenant’s criminal background so that you’ll going to know the correct information such as name, Social Security Number and current address. It will also give you an idea about the person’s criminal record at 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 consent to perform a tenant background check which can be a standard part of your application process. The notification must be a separate document, however. Also, all information you discover 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 decline 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. Click here to get your own unique version of this article with free reprint rights.

categories: real estate,tenants,rent,screening,houses,business,mortgage,Home,Security,Legal Issues,Home,Business,tenants,Legal Issues

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