If you’re a landlord, chances are you’ve been scammed at least once.
Suppose a prospective tenant gets away with lowballing you on rent or damages your property. You can lose several hundred dollars or even face eviction yourself!
Running a tenant background check before signing a lease is one of the best ways to keep your property intact.
Are you wondering how to do tenant background checks? Keep reading, and we’ll walk you through everything you need to know!
Gathering the Right Documents
Verifying a tenant’s background should start with the rental application. You’ll want to ensure that all their information is accurate and current.
Ask for the tenant’s social security number and driver’s license or state ID. This is to ensure the name matches up to what’s on the application.
You should also ask for proof of income, credit reports, and employer references. Potential renters should have no problem providing this information if they have nothing to hide. Checking national databases and sex offender registers is also essential.
Knowing the Relevant Laws
Ensure to comply with the tenant privacy laws covering the collection, storage, and use of tenant information. Screening laws put limits on the types of information a landlord has. They can legally obtain when conducting tenant background checks.
Knowing the relevant laws is essential. Landlords must obtain written consent from tenants before conducting a tenant background check. This ensures that landlords are running legitimate tenant background checks that are compliant and in line with all legal requirements.
Evaluating a Prospective Tenant
Make sure to have all of the necessary documents ready. Considering the obtained information carefully before making a final decision is essential. It may also be required to contact references from current or former landlords to evaluate the tenant properly.
The tenant background check will provide a valuable resource for evaluating a prospective tenant. This will help ensure the tenant has no previous evictions or criminal activity history.
Running Credit and Background Checks
Verify the applicant’s identity by requesting a driver’s license, passport, or social security card. This helps landlords to determine the renter’s financial history, including:
- past delinquencies
- bankruptcy
- judgments
Verify the tenant’s rental history and current income through references and pay stubs. Obtain a criminal background check to ensure the tenant has not committed any serious offenses that would disqualify them from being a tenant.
For a background check on tenants, see more here to look for the best property management company.
Creating an Equal Opportunity Rental
Landlords should research a tenant’s credit and national sex offender registry. Landlords should use the same criteria for all prospective tenants. Landlords should consider their state’s regulations regarding tenant background checks.
A landlord decides which applicant to accept when a background check is complete. The tenant application and lease agreement should be signed. A copy of the tenant background check should be provided to both parties.
This process ensures that all applicants have an equal opportunity to demonstrate they meet a landlord’s specific criteria.
Understanding Tenant Background Checks
Tenant background checks are a necessary part of the home rental process. By following the procedure outlined, landlords and tenants can feel confident that the right person is renting their property.
Act now and start your tenant background check today! Thoroughly vet each candidate. Use the positive results and additional insights to make the best rental decision.
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