Adam Almeida, President and CEO of TenantScreeningUSA.com states: “With the housing resale market still struggling to recover and interest rates remaining low, new home buyers are opting to become landlords.” Tenant background screening is a key tool in creating a win-win situation for the accidental landlord.
Becoming a landlord is a challenge. Becoming an accidental landlord redoubles that challenge.
Currently interest rates remain low, allowing individuals to purchase new homes. Unfortunately the resale market values are struggling to keep up. A homeowner’s ability to sell an existing home prior to moving to a new home can be limited. Subsequently, the homeowner may decide to keep both homes: One to move into and one to rent out.
In a recent article posted to money.usnews.com (Nov. 11, 13) the aforementioned scenario is personalized.
“We quickly realized that in the market today, with what we still owed, if we were lucky, we’d end up walking away from the table with a couple grand in our pockets,” Carmen says, adding that the profit wouldn’t even cover the down payment on the new house. So Carmen and his wife, Missi, decided to rent out their first house. http://money.usnews.com/money/personal-finance/articles/2013/11/04/what-you-should-know-before-becoming-a-landlord
Becoming a landlord is no simple task as there are a number of aspects to consider.
Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Key to being a landlord is maintaining long-term fiscally secure tenants. Obviously you don’t want a new house payment and an old house payment.”
First step and, potentially, the most important step: A thorough tenant screening.
Key components of a background check are:
1. Credit History
2. Criminal History
3. Eviction History
Each report serves a unique purpose and ultimately, each will contribute to the success of the rental situation.
Credit history will provide information on a tenant’s ability to fulfill a financial leasing arrangement. Criminal history can show convictions at the county level and may assist in creating a safe and secure situation for neighbors as well as property.
Eviction history is significant as well. Not understanding a tenant’s past in regards to evictions could, potentially, be an expensive oversight.
“In most areas, it takes a couple of months to evict a tenant through the local court process. Bad tenants know this,” … The tenant gives a sob story about why the rent is late, and “after a few months, the landlord realizes that he is being played, so he files for eviction.”
It may take a couple more months before the court date is set. Once the court orders eviction, the tenant finally leaves – many months of having lived rent-free. http://money.usnews.com/money/personal-finance/articles/2013/11/04/what-you-should-know-before-becoming-a-landlord
Accidental landlords should also understand the laws and regulations that govern rental properties. They vary from state to state and town to town. If a landlord does remain up to date on local ordinance the cost could be considerable.
As reported at www.StevensPointJournal.com the city is considering a new nuisance ordinance as it pertains to tenants.
The City Council will vote Monday on a nuisance ordinance that would allow police to issue directives, charge costs of police response, and ultimately fine owners who have properties with too many complaints and aren’t doing anything about it. https://www.stevenspointjournal.com/article/20131114/SPJ0101/311140287/
Almeida concludes: “There is a great deal to consider when it comes to being a landlord, accidental or otherwise. It is a best practice to work with a third-party tenant screening company. Tenant screening can provide landlords information required to make a solid financial decision, as well as keep the landlord current with legislation.”
TenantScreeningUSA.com is a third-party tenant screening company that provides data to landlords and property managers of all sizes, and helps provide current information regarding tenant screening legislation.
