Investing in real estate may give good amount of regular monthly income. Owners must be careful in the selection of tenants, however, since some may have an interest for the payment of rent on the property. Here we note the importance of carrying out tenant screening for protection of investment.
What is Tenant Screening Exactly?
Tenant screening is one of the best process that used by property managers and residential landlords to assess potential tenants. The goal is to find out whether they can fulfill the terms of your lease or rental agreement. In other words, it will help you find the types of tenant, paying rent on time and do not cause damage to your property. The process makes the decision to refuse the applicant conditionally (may require an increased deposit or a co-signer), or deny tenancy completely.
Process of Tenant Screening
Tenant screening starts with future tenants after completion of rental application, pays all application fees, and a holding deposit if needed (this may be returned if they are unsuccessful). Rental application gathers personally Identifiable information, such as your name, date of birth, social security number, address, employment history, credit history, and all of the eviction.
Potential tenants must sign a document confirming that the information provided is an agreement on the terms correctly and authorize the establishment of tenant screening report. Photo ID such as driver’s license or other Government or State identity is necessary, which confirm applicant ID and follow “the Federal Trade Commission (FTC)” identity theft “red flags rule”. It requires businesses, tenant screening companies and financial institutions have a program for the prevention of identity theft to indicate the person applying for credit other personal information are who they say they are.
Many owners opt for tenant screening companies instead of running the verification itself. These experienced professionals perform the service faster and cheaper, collect all information relating to the history of that image’s future tenant credit checks, public records, and so on. Prices vary from company to company. A basic tenant screening online starts from approximately $19.99 and can go up to $99, depending on the level of controls as you need.
Have competent and qualified Atlanta property Management Company such as management without borders, working behind the scenes for you will greatly improve your chances of success as the owner to ensure that a high return on your investment is achieved.
What background history does it check?
Tenant screening check is very thorough, relevant information concerning the candidate wins from different sources. These may include criminal records, consumer credit reports, past rental history, social security verification, employment verification, civil litigation records, motor vehicle driving records, personal and professional references, sex offender/predator registries etc.
The Requirements Of Owner
Fair Credit Reporting Act (FCRA) consists of the owners as user of credit reports and imposes different requirements for conducting tenant screenings. These include the following:
- Must inform the potential tenant, if they have been unsuccessful
- Must tell them, if there are additional terms and conditions
- The potential tenant is allowed a copy of the report
- The potential tenant is allowed to dispute the report
- Must provide the proper address of the company that carries out the control of the tenant
Federal and state fair housing laws state that you cannot discriminate when screening potential tenants.
Is It Worth It?
Tenant screening can help identify appropriate tenants. They are a small price to protect your investment, and all owners should be used to assess potential tenants.