There are currently around 45 million households in rental properties in the U.S.
This is great news for landlords looking to increase revenue and fill vacancies.
It also means there are a lot of new tenants that need screening. This process can seem frustrating and it might be tempting to skip it. But it is important that you don't, as you want to make sure you get the best tenants possible.
This article goes into detail about the importance of a tenant background check. It covers what a background check is, and the different reasons they are important. It also talks about finding a property management company to support you in this process.
What Is a Tenant Background Check?
A tenant background check is where you screen new tenants to check their suitability to rent. The process usually involves an interview, which can be either face-to-face or online.
There are also some other checks to complete. This includes a credit score check, which allows you to find tenants that will be able to pay their rent. You can also run an employment check for the same reason.
Finally, many landlords like to look at a tenant's criminal background check. This means you can know exactly who is living on your property.
Each landlord will have their own way of performing these steps. Forming your own approach based on data and personal compatibility will work best.
You can always change things up if they're not working!
Why Are They Important?
There are lots of reasons why performing screening on prospective tenants is a good idea. Some see it as discriminatory to look into people's backgrounds. But it is vital evidence that you need to protect yourself and others.
Provides Extra Protection
As a landlord, every time you accept a tenant you are accepting some liability for that person. If you skip the screening process, then you could face a lawsuit.
Landlords can turn away tenants based on any criminal activity. But this decision needs backing up with facts, so running a check is vital. You must be able to prove you're making this choice for the benefit of the community.
Reduces Tenant Turnover
When you put tenants through a screening process, they can see you are a serious landlord. They will know that you aren't looking for tenants who will break their lease soon after signing.
Many people also expect that there is a screening process, as it shows you care. They will feel more safe knowing you have taken the time to make sure tenants are a good fit.
You are also more likely to get more long-term leases and lease renewals.
Start Running Checks Today
Completing a tenant background check is important when looking for the best tenants. It provides you with security and peace of mind when it comes to who is living on your property.
The HomeRiver Group is an expert property management company. They can help you with screening, as well as lots of other landlord duties.
Interested in getting support with your tenant background check? Get in touch today for your free consultation!
