A great advantage is usually gain when there is a tenant screening for every landlord. Part of this advantage is reducing your risk to and tenant turnover, to improving everything from cash flow, profits, and your chances of sleeping at night ” tenant screening has become an integral component of smart landlords standard procedures.

Why Prescreen Tenants?

You are putting yourself in a great danger and even a financial risk if you would just lease your property to a complete stranger. There is a need to know your prospective tenants which includes their previous rental, credit and job history, thus this is essential in determining if there are good when you’re taking a 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 prospective tenant employed? If so, how long have they been with their employer? Job stability is a favorable sign. How strong is the tenants credit history? Are there liens and judgments against them? What about previous 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.

Is the potential tenant employed? If yes, how long have they been with their boss? Having a job is a positive sign. How well-built 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 that all about?

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 permission to conduct a tenant background check”which can be a standard part of your application procedure. The notification must be a separate document, however. Also, all information you learn 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 reject 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.