Conducting a Background Check for Tenant

Having a good tenant gives landlords comfort that the rent will be paid on time and the property will remain relatively undamaged.  On the other hand, having a bad tenant can cause trouble not just to one’s property, but also to the entire community. However, during the initial walk-throughs, most prospective tenants would act like the best tenant in the world. It is important to thoroughly screen every prospective tenant before allowing them to sign a lease agreement. The landlord may do the background checking of applicants himself, or he can hire a good online agency that can help him do such things as running a tenant creditcheck or a thorough background checking.

However, some landlords find hiring someone to do the job for him costly. The following gives landlords idea on how to check their tenant’s background.

Request an Application. Begin by asking the prospective tenant to fill-up an application. You may create your own personalized form or you can get a sample from your local real estate association. The information in the application should cover everything that you need to know about the tenant. Ideally, it cover the prospective tenant’s personal information, employment information as well as financial information. It should also be clearly stated in the application that the prospect authorizes you to run a tenant credit check, criminal history report, background check and the like, will be done.

Invite for an Interview. You may invite the prospect for an interview. This will give you a chance to observe his appearance. An unkempt appearance would most likely be a tell-tale sign that he will have an unkempt living space. If the prospect has a vehicle, take note if it appears clean and well-maintain as this would give an indication how he will maintain his living space. Pay attention to his behavior s his initial behavior will most likely indicate his potential behavior in the future. During the interview, you may ask the tenant salient information such as why he want to move or how many people will move to the rental unit. Perhaps you may also want to know if the prospect have pets or if there are any smokers, as there may be restrictions imposed on your rental property.

Verify the Information. It is essential to verify the information given by the prospective tenant during interview and on the application form. You may contact any personal references that the prospect provided in his application to give you an idea about the prospect’s reliability and character. It is also good to contact the tenant’s previous and current employers listed in the application. Former landlord will also give you important information regarding any issues with the prospective tenant. To help you with the more complex steps like verifying the prospect’s credit history or criminal record, it is best to hire an established background checking company.

When to Decline a Tenancy Application

A rental owner’s dream is to have all his property occupied by tenants. This scenario means regular influx of income from rent, and the camaraderie that tenants develop will make them need to stay longer in that area. However, it is also a landlord’s nightmare to have tenants that give them a difficult time in collecting rent and paying for damages. This is the reason why landlords require a credit check to protect their investment from losses incurred from bad tenants. Here are some signs that a renter might not be able to sustain paying rent in the long run.

Sizeable Unpaid Bills

If a credit score indicates a considerable amount of currently unpaid bills, then it is not wise to hand the lease contract to that applicant. With today’s credit system getting more and more lenient and flexible to the paying capability of a person, then the only reason why a person would accumulate such large amount of unpaid bill is irresponsibility. A person who is financially responsible would never cause a bill to remain unpaid on a long period of time.

Bankruptcy over the Last Ten Years

It is very obvious that as a landowner, it is difficult to hand over the lease contract form to a person that is currently bankrupt. However, a credit rating that reflects bankruptcy during the last ten years can be a sign of a person’s income instability. But there are chances that bankruptcy has been caused by a business failure, the recession, or other valid reasons that nullify the chance that a person cannot handle his money very well. A person who went bankrupt due to debts should be dealt with very meticulously even with claims that he is now financially stable and responsible.

A Poor Debt to Income Ratio

When a person spends for what he cannot pay, that is irresponsibility. A credit rating report can expose a person’s debt to income ration in a quantified presentation. Analyzing the data in the report will show a person’s discipline when it comes to priorities and payment of dues.

Reading through an applicant’s credit rating report can provide detailed information on his capacity to pay. It is imperative to have a good agency to render a credit check among other background checks to make sure that a prospective tenant is qualified for a slot on the rental property.

To know more about  Credit Check click here

E-Renter Tenant Screening Package

Tenant screening is a vital procedure landlords should follow. It is the main source of security for their property’s safety. Cases of violence and crimes happening on a leased unit can be prevented through this. E- Renter is the perfect company that you can trust when it comes to evaluating your potential renters.
E-Renter is a trusted agency authorized Consumer Reporting Agency which helps landlords on the occupant screening process. Their 10 years of experience gives assurance that their clients shared information are safe from hacking or invaders. They 24/7 alarm systems, physical security and CCTV cameras. Their employees are also well-filtered through back ground check.
E- Renter offers great packages on their tenant screening process where you can save more. Here we give their back ground check package that will include the following:

1. Social Security Number Verification- this will show if the applicant’s SSN is valid or not. If it’s not, then you should start thinking about approving him.
2. Office of Foreign Asset Control (OFAC) Search- this will check if he is blacklisted because of his involvement in terrorism and trafficking.

3. Eviction Record Search- you can also use this as a factor whether you will or will not his application
4. Bankruptcy Search- this is mainly one of your major concerns; whether he can pay or not
5. National Criminal Data Reports- this will show you whether he committed on available states and countries. Information are gathered form database of Administrative Office of the Courts, State Department of Corrections and NCI (National Criminal Index) which are fully reliable.
6. Sex Offender Reports- this will display possible records of sexual offense that he did
All of the reports in the above package have complete details of the occupancy applicant. They are also strictly protected and private between us and the landlord client. It includes the following applicant’s details:

1. Name
2. Address
3. Birth date
4. SSN
5. Case number
6. Court description
7. Dates
8. Defendant name
9. Alias
10. Sentence data
11. Imprisonment

For credit report background check and advanced searches, please visit their website.