When you’re the owner of a property, it can be difficult to find the right tenant to live in your home.
You want to find someone you trust who will pay their rent and take care of the home. Yet, as a landlord, you have to screen tenants.
Screening tenants is an essential part of being a landlord, and you want to make sure you’re doing it right. If you’re not careful, you can open up the opportunity for identity theft.
Keep reading to learn about common errors with screening tenants and how to avoid them.
1. Not Running Background Checks
Background checks for tenants can give a wealth of information on potential tenants. This includes things such as their credit history, criminal history, and references. Running background checks can help ensure that a tenant is responsible, has the necessary finances to make rent payments, and is not a security risk.
Landlords can avoid other potential problems, such as accepting a renter with an unfavorable rental history. To screen potential tenants, one should complete a thorough background check and gather other documents.
This includes information such as proof of income, references, and identification. Performing these checks can help landlords make informed decisions and avoid costly mistakes down the line.
2. Not Verifying Tenancy Applications
Not verifying tenancy applications can lead to serious issues. Tenant applicants may present falsified documents, including false rental histories and false employment histories. Landlords must take care to verify the authenticity of the information given by the tenant in their applications.
By confirming the tenancy applications, conducting background checks, and checking the rent history of the tenant, landlords can protect themselves and their investments. It is important not to take the tenant’s word of mouth as gospel.
Landlords should take proactive steps to protect themselves by verifying information. If any information is false, the tenant shouldn’t be allowed to move in.
3. Not Getting References
As a landlord or property manager, it’s essential to ask for references from prospective tenants to learn more about that individual. Without references, it’s impossible to know if the tenant was reliable and responsible in the past. Landlords should make sure that tenants give references from earlier landlords, roommates, and employers.
Additionally, landlords should contact these references. It’s important to remember that this information should only be used to make an informed decision, and not be based on personal opinions or biases.
4. Not Checking Credit
Having good credit is a key indicator of a tenant’s financial health and responsibility. A background check should be done to check the financial history of potential renters. A credit report should be requested to check for any red flags.
Landlords should pay attention to any payment history, debt versus income ratio, and public bankruptcy records. Taking the time to check all these areas will help identify potential risks and make the decision to accept or reject a tenant easier. Avoiding screenings that don’t include a credit check for tenants could mean saving the landlord from financial losses in the long run.
5. Relying on Rental History
While past rental history can give useful insight into a tenant’s past reliability and finances, it is far from paramount. Tenant verification services have access to thousands of data points that can give a much richer and more comprehensive view of a tenant’s trustworthiness.
The right tenant verification services should go beyond collecting data, to providing a comprehensive picture of a potential tenant’s financial stability. Also, it includes rent-paying habits, criminal history, and other factors that could contribute to a successful, long-term tenancy.
6. Not Understanding What Forms a Criminal Offense
The problem is that some people tend to think of a “criminal” person as very deviant and they do not understand that the law might allow certain people with a criminal background to look for housing. It is important to understand that this type of criminal offense matters.
For example, minor offenses or crimes from a long time ago are likely not to be taken into consideration when selecting a tenant. It is also important to educate yourself as a landlord about criminal law and to prevent any discrimination due to a criminal background. This can often be done by consulting with a real estate lawyer or a tenant screening service.
7. Not Verifying Their Income
If a renter’s income is not verified, amendments and contingencies that may be needed to calculate the monthly rent can be missed. To avoid this mistake, landlords need to ask for proof of income–paystubs, tax returns, and/or proof of employment.
Being sensitive to privacy matters and landlords should ensure any requested information is safe. Moreover, it is beneficial to most landlords to request verification of applicants’ deposits and assets as this will help in making a final decision.
8. Not Evaluating Pets
Pet owners should provide proof of pet vaccinations, proof of spaying and neutering, and a reference letter from previous landlords. It is important to see how the pet interacts with the prospective tenant. Make sure that the tenant is compliant with all existing regulations and restrictions on the property.
A pet policy should be upon between the tenant and the landlord before move-in. Landlords should ensure they get pet deposits and fees upfront.
Top 8 Errors With Screening Tenants You Can’t Afford to Make
Never underestimate the importance of thorough screening and background checks when choosing your next tenant. This process can help you avoid these common errors and find the right fit for your property. Always take extra steps for the accuracy of reported information to make the right decision.
Avoiding these errors with screening tenants can save you the immense hassle and help assure a happy and successful tenancy. Start screening tenants today to ensure your rental business runs smoothly and profitably! So what are you waiting for? Check out the rest of our blog to learn more about everything you want to discover aside from this article on the tenant screening process. We can help you to succeed in management and more!