Monday, October 7, 2013

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.

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