Running a Tenant Background Check on Every Rental Applicant
I have used the following tenant screening tips to conduct a tenant background book order to fill vacancies inside my rental properties. But, unlike all of the generic tenant screening tips you see on the internet from authors that don’t even own accommodations property, these ones I’ve got learned and used from experience. I’ll offer them here therefore you be the judge…
Doing a tenant background check could be expensive and time consuming but nowhere near as expensive and time intensive as putting a bad tenant in your rental unit. In the event you read the first article on tenant screening tips it is best to now have met the applicants personally and have a rental application at your fingertips that is completely completed with all the information you need to accomplish a tenant background check and will have a check for the applying fee. When they submit the application make sure you request to view a valid form of identification. My applicants had “forgotten” to put in writing the driver’s license information about their application. I personally use this opportunity to write down the state issue, number, birth date, verify address or course the photo and physical description of your companion which is part of your tenant background check.
Some landlords request a photocopy of any valid I.D. to keep on file. I do believe that is a good idea but there are also privacy and document protection problems that go along with this so that you can comply with landlord tenant laws.
Now that you’ve all the information you need to conduct a tenant background check you must go to work. In order to conduct the tenant background check I need to to do including tenant credit checks I asked for advice on tenant screening services and wound up using Tenant verification Service to receive a credit report, a criminal background check and an eviction report. These three reports are essential and I was amazed at how quickly and easily I was able to get these through Tenant verification Service. An eviction filing immediately emerged for one of the applicants i asked the applicant concerning this.
They were surprised by this eviction notice and claimed they didn’t know anything regarding it (yeah right, I figured). But it turned out how they went back to the management office from the apartment complex that filed the eviction along with the office explained that they filed for eviction considering that the rental payment has not been received but how the payment was received eventually and so they did not proceed with the eviction. I further verified legal court records and found out how the eviction had indeed been dismissed. Furthermore they resided as well apartment complex for 6 months after this eviction notice to ensure that cleared their story simply because obviously would not happen to be able to stay if they had been evicted. So that you can see how helpful it is usually to use a tenant screening service. Also, employing this service I was competent to check their credit report. You should always check an applicants credit score but let me share my experience with this aspect.
Tenant Verification – Make risk out of renting – Reduce income loss
Tenant background Check: The financing Report
When I first started renting I believed you wanted a credit file on the applicant to see what their credit history was and if it turned out low then I wouldn’t rent in their mind. But it turns out how the actual credit score is certainly not important…the credit history is. I had a tenant whose credit score was low, about 600. This is due to some education loans that had not been paid punctually and some other stuff. However her current salary was good and she or he had no major debt obligations during the time. I rented to here and she paid on time every month without exception. So utilize the credit report and the credit standing in combination with the other factors like salary, total debt obligations, employer, rental history, etc., when producing your decision.
Additionally when you get someone with a low credit history you can use this as rationale to enhance the security deposit to maybe 1.5 or 2 times the monthly rent. This could help mitigate your risk in renting to someone with poor credit. At the same time the higher the security deposit supplies the more likely they are to cover on time and maintain your house because they would like to get that high deposit back. (See more at tenant background screening services). The crucial thing you must remember is that you apply your security deposit policies (or any policy for that matter) equally to all applicants. If you don’t which might be construed as discrimination which can get you into a lots of trouble. Know your tenant landlord laws. Make sure you set guidelines that if for example someone has a credit score of lower than 600 then you charge two months security deposit. Whether they have a score between 600-650 then you definitely charge 1.5 time the monthly rent for deposit and thus on…
Tenant background Check: The Rest of the Information
You will additionally verify employment or income if they are self-employed. The easiest way to do this should be to request a copy with their most recent pay stub. If they are self-employed ask to see their latest tax returns. I request the name and placement of employment plus a supervisor I can contact to ensure this. However I strive to find a phone number for that location of employment on my own rather than using the one they offer me just to make certain they don’t give me a close friends phone number.
When I tally up their monthly income and obligations I wish to see that the rent for my property is going to take no greater than 25% of their monthly income, approximately. This is a rule of thumb not a hard guideline. I also take into consideration how much rent these folks were paying before. I would like to see that they were paying much the same amount so that the rent I will be charging will not be an enormous jump for them. If my rent is really a lot higher then I ask them about it and how can they adjust and then I would like them to be close on the 25% rule. Verify their rental history with their current landlord in case possible with the previous landlord. It may be hard to track down previous landlord and/or they might not be very cooperative but try your best. Ask them about payment history, duration of residence and any complaints regarding the applicant they might be aware of. You can also ask the applicant for any letter from the previous landlord stating this. The big apartment complexes are widely-used to this so they can provide this fairly easily, you should definitely verify it though.
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Finally, verify their vehicle information and make sure you have the model and license plate for vehicles. Check any other family/friend references that they provide. Also inquire about any negative information it’s likely you have gathered from the application or any part of the application they may have gone “blank”. You want to know why it truly is blank…ask, you might be surprised. When all is said and done you still have to use your best judgment and instinct. We’ve heard landlord stories of people which can pass all this and turn out to be horrible tenants. So gather together as many facts that you can, make use of the tenant screening services but be aware that you will still be choosing a leap of faith however, you have done your best to minimize your risk.
Be sure to know your tenant landlord laws, so you know what you can/can’t ask and what exactly are your state’s laws regarding, deposits, inspections, evictions, etc. These can vary significantly from state to state. If you apply these tenant screening tips you will show your tenant they are dealing with a business plus a professional landlord but not someone that considers this a hobby. I am a believer that many people are good and they’re looking for a decent destination to call home. Up to now my experience may be that if I give a good property, in great condition for a rent price that reflects i will get what I give.