The key to tenant screening is risk mitigation. Risk may involve person or property. Long-term renters are screened for financial worthiness as well as reliability. A landlord or property manager may require a credit check, eviction records and, where legal, criminal history. Often, personal and professional references are a part of the tenant screening process.
In the shorter term, that is a week to a month plus rental range, a tenant background check should be equally robust. Just as with long-term renters the key is risk. And with a hot vacation rental market a tenant check can assist a property manager or landlord in acquiring a solid tenant.
A number of short term vacation rentals come in the form of second homes. Instead of selling a home in order to buy a new home in a different part of town or a smaller home people may consider keeping a home to rent out, especially if the property is in a highly desirable location.
Adam Almeida, President and CEO of TenantScreeningUSA.com states: “While not everyone can own a second home in Hawaii or Malibu there are numerous locations across the country, especially along the shore that make excellent rental opportunities.”
From the Wall Street Journal (www.wsj.com; Mar. 17, 16):
The robust monthly market has encouraged landlords who used to rent long term to concentrate on short-term rentals. (1)
But the decision to rent out a property as a short term rental should not be taken lightly. There are many steps and challenges involved with renting a home or property.
Key among the steps toward being a landlord is a tenant check but even this task can provide challenges.
Almeida states: “Understanding that risk mitigation is key to a successful rental relationship, landlords should screen a potential tenant for a short-term rent just as they would for a longer, open ended relationship. Understanding past behavior will inform future behavior.”
Many rental market publications indicate the need to screen tenants for short term rentals as one of the critical steps.
From realestate.usnews.com (Feb. 24, 16)
It’s important to screen tenants, collect a damage deposit and have a strong rental agreement in place, as well as the proper insurance, to protect your home from damage. (2)
A tenant check for a short term rental could include the following reports and data points:
1. Credit Check – Financial wherewithal is key, certainly. Many rental arrangements demand half of the rental payment up front, a deposit, and the remainder on departure. For highly popular and up-scale rentals a landlord may want to know the backend payment will be forthcoming.
2. Evictions – Given the rental is a short-term stay evictions may not seem to be an important report. However, an evictions report could inform a landlord to past behavior of the renter thus the potential risk to property.
3. References – Whether it is a long term arrangement or short term references can greatly assist a landlord in making a smart decision about a potential tenant.
Almeida states: “Ultimately a landlord of a short term vacation rental should work with a well qualified third-party background screening company in order to remain fully compliant with law as well as to provide information in a simple, low-cost manner. A third-party tenant screening company has the tools and ability to provide information in a quick, efficient manner.”
TenantScreeningUSA.com is a third-party background screening company that provides tenants checks to landlords and property managers for all sizes and types of rental complexes. From the single-unit to the large community, TenantScreeningUSA.com has the ability to customize a tenant screening package specific to a managers unique requirements.
Notes:
(1) wsj.com/articles/malibus-summer-rental-market-booms-1458223281
(2) realestate.usnews.com/real-estate/articles/what-to-know-before-renting-out-your-vacation-home/
