According to Property 118, when tenants damage properties, it's usually the landlord who loses out financially. The best solution? You need to find tenants who won't damage the property in the first place.
The key is doing an effective tenant criminal background check. So, what exactly is a background check, and what does the tenant screening process involve? Read on to learn more about this essential property management practice.
What is a Tenant Criminal Background Check
A background check helps you find quality tenants by uncovering red flags from their past. People with a history of not paying rent or doing criminal damage are likely to do it again. Finding out someone has a criminal past generally isn't sufficient to legitimately evict them so getting a detailed tenant history is a crucial phase in the application process.
These are the key areas of effective rental background checks:
- Criminal history
- Financial status
- Reputation with previous landlords
Armed with accurate information about applications you can find the best renters and mitigate rental risks.
Criminal Background Check
An applicant having a criminal background is a serious red flag. Applicants with a serious criminal past are unlikely to respect your property, and they may even use it for criminal activity. Thankfully, as NOLO states, details about criminal convictions are widely available.
Through a background check, you'll get a list of criminal convictions against the applicant. It's up to you to decide if the crime is severe enough to deny the application.
With serious offenses, this isn't too difficult, but you'll need to use your judgment for more borderline cases. A tenant criminal background check ensures you're able to make these decisions for yourself.
Investigate Financial Status
A key part of property management security is ensuring the rent is on time. For landlords with a modest portfolio, it only takes a couple of tenants not paying rent to cause serious financial problems. a tenant background check helps you avoid this.
A financial check involves investigating:
- Any evidence of excessive debts
- History of bankruptcy
- Employment verification
This stage is all about making sure an applicant is financially responsible.
References from Previous Landlords
Of course, most tenants are not hardened criminals with large outstanding debts. Some of the most problematic tenants seem perfectly fine based on criminal and financial history, but if you talk to their previous landlord, it's a different story.
By contacting previous landlords and asking about their experience with an applicant, you could get valuable information you'd never uncover during a formal check. If a tenant is evasive about getting a landlord's reference, they could have something to hide.
You Need Professional Property Management
The background check is a complex and multifaceted process. Without professional knowledge and experience, you'll struggle to manage the intricacies of a tenant criminal background check. That's why most landlords choose to get help from professional property management services.
Here at PMI South Sound, we're here to help you conduct detailed and reliable background checks on potential tenants. We have decades of experience in the property management industry, so our checks are comprehensive.
Contact us today, and let's get some insight into your rental applicants.
