When times are tough and you have open rental units, you may need cash fast. Unfortunately, caused by a tight budget, many landlords choose to skip the tenant background check in an effort to save money. Bad Idea! Instead, you should think about charging an application fee. This is an excellent way to recover expenses for that tenant background check. If you happen to have multiple applicants for the same unit, you may want to execute a tenant background check on the one’s who have the greatest potential according to their rental application. If you approve one of the first ones you screen, you can always refund the application fee towards remaining applicants you did not do a tenant background check on. Or, it is possible to screen all applicants immediately.
Tenant Background Screening Pays for Itself and choose the strongest applicant. In that case, there would be no refunds for being issues since a tenant background check was conducted on everyone. Be sure to advise all potential tenants if they’re applying that you require a non-refundable application fee. This should actually be communicated verbally as well as in writing on the rental application. Also, be sure you avoid accepting any sort of deposit until you have performed a tenant background evaluate all applicants and you’ve got made your selection. The fee that you are able to charge will depend on your local and state laws, because they vary. Before setting the job fee be sure to consult with the appropriate agencies in your state to find what amounts you might be legally able to charge. If your application fee policy is questioned, be ready to prove expenses with accounting records. Keep the application fee using a different line item from security deposits and rents within your books.
Bear in mind that this fee is supposed to keep your costs of tenant background check down and are not meant for personal profit. Be smart and honest by accepting only fees that you will truly use for tenant background checks. It’s also possible to do some pre-screening prior to running the tenant background check. When someone does not meet your minimum requirements written, they may not have to be screened any further or pay the application fee. Every landlord, property manager, and owner would want to lease their property to responsible tenants. Responsible tenants would pay the rent on time and take better care of the property during the lease period. Getting this sort of tenant is not always easy. How will you differentiate between a responsible tenant then one who is not? The best way to do this is to screen every one of the potential tenants, but not all landlords, property managers, and owners can do this.