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. The tenant must provide adequate identification. Identification is a first round screening step which involves verifying the names, addresses, and social security numbers with the rental application. These details should match and be double-checked for accuracy. Proper identification includes drivers licenses, birth certificates, or a valid US passport.
2. A rental application is essential. It should include fields such as name, address, primary and secondary phone numbers, salary and work information, and bank accounts. The application should also ask questions relating to credit history, and their ability to make monthly rental payments based on their current salary and outstanding debts. The prospective tenant should also list two references who can be contacted for further screening and verification.
3.The next essential step is to obtain an accurate tenant background check. These checks will alert the landlord to a number of major issues that should raise red flags. A proper background check will include previous criminal activity and sex offender status. It should also include arrests nationwide, not solely in the state of application.
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. The last important factor involved with tenant verification is a credit history report which should be included in the tenant background check. Credit history records will report late payments, bankruptcies, and will also give specific addresses of residence. Credit history information should play a major role in the decision-making process.
Landlords today are generally not responsible for the fees associated with the background checks. It is very common in the real estate market today to include these charges in the rental application fees. The tenant should be aware of the charges and what they are being used for. It is their right to know. If there are any complaints, then the landlord can make a responsible decision as to the character of the individual as this may also be used as further tenant screening.
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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