A majority of property managers and landlords realize that tenant checks greatly assist in the vetting process of new tenants. There are several reasons one conducts a tenant check:
1. Financial protection – Property owners obviously do not want to rent to individuals or families that cannot afford to uphold the financial portion of the rental agreement. After all, what is the point of renting to someone that cannot pay?
2. Property protection – Rental properties represent a significant investment. From single-units to large rental communities, the cost of upkeep alone can substantial. Destructive tenants will only add to the cost of a rental property, not only in repairs but also in lost income via empty units.
3. Reputation protection – The cost in reputation is subjective. Frequent call outs by the police, exterior damage such as tagging and graffiti, and high tenant turnover.
4. People protection – Along with the aforementioned items, the protection of existing long-term tenants is critical. Not only do long-term tenants provide steady income, they can provide leads or make recommendations to others to rent at that property. People like themselves that may be steady individuals or families that ultimately could become long-term residents.
In a recent article from the Addison County Independent (Jan. 24, 2013) points are made that illustrate the reason tenant checks are so important.
Vermont, as with many other states, has a drug problem.
The drug problem in Vermont has long economic fingers that have gripped the state. Drug abuse increases police budgets and raises taxes. It is a public health issue and increases insurance premiums. It adds to the prison population, and therefore, the state corrections budget. It contributes to the high school dropout rate. It feeds poverty. It destroys families. It breaks hearts. http://www.addisonindependent.com/201301landlords-vulnerable-drug-war-wary-tenants-who-deal-drugs
The war of drugs is one that affects communities large and small, as well as the homes they live in. Landlords have been on the front lines of this war and are desperate for help. During times of economic challenge landlords are willing to rent to those that meet the barest financial qualifications.
It’s no secret that many landlords tend to rent to tenants who receive some kind of public assistance. Often people who earn a lower income cannot afford to buy a home and must settle for renting an apartment. Others may be on disability, are unable to work, and cannot afford to own their own home and must rent as well. And, of course, three years into the economic recovery from recession, more and more people have lost their jobs and have had to take jobs that pay less. Many have lost their homes and are now renters. Still others are merely young people who are unable to earn and save enough money to own a home. http://www.addisonindependent.com/201301landlords-vulnerable-drug-war-wary-tenants-who-deal-drugs
Certainly a tenant check is not designed to preclude any individual or family from gaining a rental home or apartment. Tenant checks in tenant screening provide information to landlords and property managers the information required to make a sound decision. Combined with an thorough face-to-face interview, a tenant check will go along ways in mitigating the risk of renting to a “bad tenant.”
Even if a more involved background check ends up costing the landlord some money, … it’s a small price to pay in the face of legal fees for an eviction and costly repairs to a rental property. http://www.addisonindependent.com/201301landlords-vulnerable-drug-war-wary-tenants-who-deal-drugs
The protection of property, people, and reputation is greatly assisted through tenant screening.
In the end Tenant Checks do not have to “break the bank.” TenantScreeningUSA.com is a third-party tenant screening company that offers affordable, thorough, and secure background screening for landlords and property managers. TenantScreeningUSA.com can create a tenant screening package unique to the requirements of rental properties large and small.
