Tenant background checks are a part of the vetting process for rental applications and conducted as part of the application process. Without conducting a thorough background check property owners may open themselves to loss in revenue, reputation, and livable rental properties.
Tenant background checks can offer a variety of information garnered from public records and other sources, such as previous landlords and employers. Use of this information will allow a property manager or landlord to make an informed decision as to the quality of their prospective tenant as well as the level risk potential.
THERE ARE 3 KEY REPORTS INCLUDED IN MOST TENANT BACKGROUND CHECKS:
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Credit History – Credit history shows outstanding debts, lines of credit, and related fiscal responsibilities as well as an ability to pay a monthly rent or lease.
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Criminal History – Checks the criminal backgrounds to determine if there is a criminal offense convicted of that would jeopardize the safety of the rental community or other reasons such as prevention of property damage and property reputation damage.
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Evictions – Even with perfect credit, solid employment, and a clean criminal background a prospective tenant could still become a bad tenant. This type of candidate may have been previously evicted from another apartment for a number of different reasons and could do it again at your property. There are more reasons than non-payment of rent to force eviction.
OTHER REPORTS THAT HAVE VALUE TO LANDLORDS AND PROPERTY MANAGERS WHEN CONDUCTING TENANT BACKGROUND CHECKS INCLUDE:
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Bankruptcies, Liens & Judgments
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National Criminal Search
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National Sex Offender Registry
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County Criminal Records
THERE ARE SEVERAL REASONS ONE MAY CONDUCT A TENANT BACKGROUND CHECK:
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Protection of property – Damages from a bad tenant could be in the tens of thousands of dollars. Also, repairs could take a property off market for months at a time, thereby losing additional revenue.
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Protection of current tenants – Disruptive tenants could force long-term tenants to move elsewhere. The loss of predictable income could decrease the overall value of a property.
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Loss of reputation – Bad tenants force away long-term tenants and, subsequently, decrease the reputation of a given property. A property with a bad reputation may be forced to lower rental rates in order to maximize occupancy as well as potential income.
It is also important to note that tenant background checks are not just for large, multi-unit properties. They can be equally if not more important for the small or single unit property owners.
OTHER USES OF TENANT BACKGROUND CHECKS INCLUDE:
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On-property/in-home rentals – Owners of a single family dwelling renting out a room or a Mother-In-Law apartment over the garage.
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Seasonal – Apartments or homes that are rented on a seasonal basis, such as mountain or desert properties.
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Opportunistic Rentals – Massive events such as the Olympics or South-by-Southwest, where demand far outstrips supply, offer opportunities to property owners to rent their homes.
It is important for landlords and property managers to conduct tenant background checks through a third party provider. Background screening companies understand the laws and regulations that govern tenant screening. A third-party provider can offer valuable option such as secure on-line portals for data transmission, multiple packages of reports, and flexibility.
TenantScreeningUSA.com can provide property managers and landlords the information they require and demand, regardless of property size. With tools available to both tenants and landlords, as well as state-of-the-art screening packages such as SmartMove® , TenantScreeningUSA.com is the first stop in Tenant Background Checks.
