Property owners can avoid numerous issues that can occur with negligent leasing. Demanding landlords or property management companies conduct tenant screening for all tenants will potentially protect against property damage, theft and violence against others thereby potentially reducing the owner’s risk of financial loss.
As the number of renters in the United States continues to increase the need for reliable tenant screening increases as well. While a credit check will certainly indicate an individual or individual’s ability to be fiscally responsible, a simple background check will go the extra step to provide additional assurances for the rental agency as well as the property owner.
Tenant Screening can consist of several components:
• Credit History – As mentioned, a credit history will show the wherewithal of a renter in their ability to be fiscally viable for the property of inquiry.
• Evictions – Reporting on an individual’s eviction history not only informs on a person’s responsibility to forming a legal contract, but their availability in becoming a long-term asset to a property. The goal of any landlord or property manager is reduced churn in occupancy. The more time a property sits empty the greater the cost.
• Bankruptcies, Liens & Judgments – These reports will reveal any potential “hidden” risk to renting a property.
• County Criminal Records Search – will report any activity in a specific county. A county criminal records check is the most reliable and up-to-date report available.
• National Criminal Search – Crime does not always occur close to home and this report will show activity not only in the state of residence but other states as well.
Essentially, running a background check is a tool to reduce risk and manage potential risk. And risk can come in many forms: Property, Personal, and Environmental. Without managing risk a property owner may open themselves to significant liability.
The advantages of tenant background screening that eliminates negligent leasing are numerous:
• Property is protected. Theft and property destruction can be greatly reduced if not eliminated entirely.
• People are protected. A rental property that has a high turnover can destroy the value of the property.
• Investment is protected. Rental properties should command a level of return that meets the needs and goals of an owner. The opportunity to meet that return on investment is greatly increased through the proper vetting of tenants. Reliable, long-term tenants will allow greater profitability than riskier, more transient renters.
In the end it may come down to the cost of conducting tenant background screening for a property owner. While running a credit check has always been a part of the tenant vetting process and often charged to the potential tenant, running a complete background check may be a new experience and a new cost. But consider the cost of one bad tenant. A bad tenant can drive away long-term tenants, those that pay on time and renew leases year-after-year, as well as destroy property. Additionally, the potential for negligent activity on the part of a bad tenant may ultimately result in a significant cost to the property owner, in the form of law suits or other legal activity.
Take the risk out of leasing a property. Tenant screening checks are fast, affordable and reliable. Contact TenantScreeningUSA.com for more information.
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