Landlords: Intimidated by Tenant Screening? Five Simple Do’s and Don’ts for Peace of Mind

tenantriskverification August 27, 2012 0



As the demand for rental properties skyrockets, landlords can be bombarded with applicants. With so many people vying for an apartment, how can landlords be sure they find the right tenants?



A landlord’s worst nightmare is an irresponsible and negligent tenant. Fortunately, comprehensive tenant screening can greatly reduce the chances of signing a bad renter. Here are a few tips when screening a tenant:

–        Do Conduct a Comprehensive Background Check. Running a comprehensive background check on a potential tenant is one of the most important steps in finding a credible renter. Always use a report that includes credit, criminal and eviction screening at a minimum. The best reports also include a decision recommendation, income to rent analytics and credit payment history in an easy-to-read format.

–        Do Make the Applicant Pay for the Report. Use a service that enables the applicant to pay for the background check directly. If the potential renter is interested in a property, has nothing to hide and has the funds to rent, he or she should be comfortable paying for the report. Having the applicant pay for the report saves the landlord the inconvenience of fronting the screening costs for multiple applicants.

–        Do Take the Time to Read Tenants’ Background Reports Carefully. Be sure to take careful note of any collections flags. Applicants with collections actions are much more prone to skip payments or require eviction. Also, be sure to take the income to rent ratio into account. Tenants that make less than two times the rent amount are more likely to pay late or skip or stop paying altogether.. Tenants that make more than three times the rent amount are less likely to have payment issues. Also, be wary of tenants that only want to deal in cash. This can often be a sign of a much deeper problem.

–        Don’t Waste Time on the Phone Call to Prior Landlords. Calling a tenant’s prior landlord is often ineffective because some landlords provide no information as a policy to avoid any chance of defamation. Even worse, others may lie about the history of the tenant to expedite a troubled tenant’s move out of their property and into yours. Avoid the hassle of calling previous landlords, and stick to the facts from the background check.

–        Don’t  Forget About Fair Housing. The Fair Housing Act protects the buyer or renter of a dwelling from seller or landlord discrimination. The act prohibits refusal to sell or rent a dwelling to any person because of race, color, religion, sex or national origin. To avoid potential issues, make sure to create objective standards for your decision and apply them to the data in the screening report.

Tenant screening doesn’t have to be overwhelming. Following these simple tips and taking the extra time to thoroughly screen applicants will be well worth signing honest, dependable tenants and will greatly reduce stress in the long run.

This article originally appeared on realtybiznews


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