4 Essential Tenant Screening Steps

In today’s world, crime affecting landlords directly is at an all time high, and landlords need to feel they can trust the person they are handing the keys over to. There has been a remarkable increase in tenant fraud, involving property damage, unpaid monthly payments, false credit reports, and criminal activity. Tenant screening is an essential endeavor to ensure the correct identity and record of the renter. Proper screening involves many different steps, which will be outlined below.

1. Obtain adequate identification from the tenant. This step is a first round screening attempt to match the entries on the rental application for verification. Names, addresses, social security numbers (where applicable) should match and be double-checked for accuracy. Adequate identification includes drivers licenses, birth certificates, or a valid US passport.

2. Require the tenant to fill out an extensive rental application. The application should include at a minimum the name, current and previous addresses, primary and secondary phone numbers, work and salary information, and bank accounts. Also included should be a section on credit history, with questions directly related to their ability to make payments with their current salary and expenses. In addition, the prospective renter should be able to list at least two references the landlord can contact for further verification. These items are essential; the rest is up to the jurisdiction of the landlord.

3. Obtaining a tenant background check is one of the most important actions a landlord can perform. These reports provide a detailed list of criminal activity, nationwide arrests, and sex offender status. They also detail the tenant’s personal information which should be compared to the rental application for accuracy.

The background check will also provide information relating to previous addresses, employers, and alias information. As stated before, it is imperative to compare these reports with the rental application for accuracy. If these records do not match, there should be some concern and proper action should be taken.

4. Obtaining a credit history is imperative and should be included with the tenant background check. These reports will list the future tenant’s credit mishaps, late payments, bankruptcies, and previous addresses. This information should be a major part of the decision-making process.

In most cases today, the landlord is not responsible for the fees associated with the background checks. Although the fees are usually minimal, if the money is a problem, it is customary to include these charges in the rental application fees. These fees should be paid upfront and the future tenant should be aware of what they are for and why they are being charged. If there is a problem, the landlord should consider this a first step in the screening process while reflecting on the character of this individual in question.

You do not have to become a victim of tenant fraud if you carry out these essential steps. They are not difficult to perform and they could potentially save you thousands of dollars and hours of heartache. Today, good renters are hard to come by; however, you do not have to rely on your intuition. Tenant screening with proper tenant background checks will detail all of the information you need to make an educated and researched opinion in order to protect your property and your family.

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