Small unit or property landlords should conduct tenant background checks for the same reasons larger properties conduct them: Risk mitigation.
Individuals seeking to take advantage know that small property landlords or property managers are less likely to conduct tenant checks.
From www.NWITimes.com (Oct. 04, 14):
A survey on landlord practices conducted by independent research firm Liminality, Inc., on behalf of Real Property Management, found 21 percent of do-it-yourself landlords sometimes or never conducted background checks on their prospective tenants. Only 44 percent conducted sex-offender checks.
…says DIY landlords don’t have the time or resources to screen tenants, which can lead to property damage, legal fees and more. http://www.nwitimes.com/lifestyles/home-and-garden/why-sell-when-you-can-keep-rental-properties-create-revenue/article_4879d6b3-a01b-54c0-9a81-1994207b6db9.html
A tenant check provides a landlord with the information they require in order to make an informed decision about a potential renter. But there are some common misconceptions.
From www.theWashingtonPost.com (Sep. 29, 14)
Small-scale landlords are less likely to run a background check or check for evictions and other legal issues, and may not even run a credit check… http://www.washingtonpost.com/express/wp/2014/09/19/no-pay-stub-not-so-great-credit-some-issues-can-make-renting-tricky-but-not-impossible/
Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Landlords of any size have access to the same data point’s larger properties access, including consumer credit checks and evictions.”
Risk mitigation for small unit landlords is all about person and property.
Almeida states: “The biggest asset any landlord has is a long-term tenant. This is especially true for small unit landlords.”
Creating an environment conducive to long-term tenants can be a challenge. First, a landlord must create an attractive property. Maintaining a property – one that is both attractive and safe – is important to long-term tenants. Fixing small things and keeping an apartment fresh in appearance will go a long way.
However, a tenant check remains a critical tool.
From www.news.com.au (Sep. 23, 14):
“Speak with previous landlords or property managers and ask specifically whether they had any issues with the tenant in the past…” http://www.news.com.au/finance/real-estate/bad-tenants-dont-only-cause-headaches-they-can-cost-property-owners-thousands/story-fncq3era-1227067587241
Almeida adds: “Checking a potential tenants past is so important. The information gathered can greatly assist landlords make critical decisions.”
Key elements of a tenant check include:
- Consumer credit report – measure a potential tenant’s ability to fulfill financial obligation.
- Unlawful detainers – will show a tenant eviction history.
- Criminal history – will provide criminal history on a county level and is the most current form of public record.
- Sex offender registry – will show any convictions as well as the level of any offense.
There are additional reasons small property landlords should work with third-party tenant screening companies.
Almeida adds: “The laws governing the tenant screening industry are rapidly changing. Laws and regulations governing the use of public records continue to evolve. Third party background tenant screening companies are tasked in staying current with all these rules. Small property landlords that utilize third party tenant screeners will have access to that knowledge.”
Working with a third-party tenant screening company could assist a landlord in avoiding the cost of breaking a law.
In the end it is hugely beneficial for small property landlords to work with a third-party tenant screening company. They will offer the information required to make an informed decision as well as provide the information to stay compliant with laws and regulations governing the tenant screening industry.
TenantScreeningUSA.com is a third-party tenant screening company specializing in the needs and requirements of small unit landlords and property managers. With skilled and high trained operators available for consultation, TenantScreeningUSA.com is ready to assist in mitigating risk and helping landlords make difficult decisions.
