Friday, February 6, 2009

4 Tips for Proper Tenant Screening

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. The tenant must provide adequate identification. Identification is a first round screening step which involves verifying the names, addresses, and social security numbers with the rental application. These details should match and be double-checked for accuracy. Proper 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. Obtaining a tenant background check is one of the most important actions a landlord can perform. These reports provide a detailed list of criminal activity, nationwide arrests, and sex offender status. They also detail the tenant's personal information which should be compared to the rental application for accuracy.

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. The last essential factor involves obtaining a credit history. This information should be included in the tenant background check. The report should include late payments, bankruptcies, and specific addresses of residence. These reports should play a major part in the landlord's 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.

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