Running a rental property is challenging in so many ways. First, there are the challenges with finding tenants and advertising your building. But then comes a whole new set of challenges — running a tenant background check.
Most property owners don't want to let just anyone into their building; they want people who are trustworthy. They need guarantees that their tenants will not damage their space and will keep it tidy. And most importantly of all, a tenant screening will help you tell if a person is a good match for your community.
Keep reading below to learn more about how to effectively run a tenant background check!
A Tenant Criminal Background Check is Common
When property owners run a background check on someone, they are usually looking for some key things. They may want to see that person's employment history, and what their credit score is. Most importantly of all, they will want to tell what the person's criminal history is like.
That kind of information can give you valuable insight into their character and their personality. To find it, you will want to hire professional companies experienced in investigating people. These kinds of companies have the relationships and knowledge to pull records about people.
They will then send you documents showing what they found, and will usually write a report about the person. That report can be used to decide on whether a person's application should be accepted.
Credit Checks Give Insight Into Finances
Property owners considering someone for an apartment will want to know one crucial thing — can they pay rent. That's why most property owners require proof of income or W2s. Many also run a hard credit check, revealing crucial information about their finances.
This kind of check can be requested through major credit bureaus. Most of the time, the real any unpaid debts and patterns in the way a person handles money. It can show you information about what their income is like.
Property owners can then decide whether they are a good match for the community. They can also decide if they trust a potential tenant to uphold their end of the deal and pay the monthly rent.
Speak With Previous Property Owners
One of the best ways to decide whether to accept or reject an application is to ask for references. Most of the time, these references will be properties that the person previously stayed at. If the person shares their number, you can just call them and ask some questions.
Ask about whether the person was ever reported for disrupting neighbors, or if they treated the property well. There is no better way to learn about a person than to speak with people who worked with them before!
It's Important To Run A Tenant Background Check
As a property owner, you are trying to build a community that people want to be a part of. You are trying to improve the lives of your tenants, giving them a place they are proud to call home. And to do that, you need to run a tenant background check before letting people live there.
These kinds of checks are routine parts of the application process. They can also reveal valuable information about a person, and help you decide whether to allow them in. However, there are other ways to create a good community.
For help managing your property and establishing relationships with tenants, just reach out to us here!