BY: HOUSERIE 08/02/2017
Opening up your property for rent to other people can be a lucrative business. While that may be the case, it is also the type of business that can be very risky, especially because you are entrusting your property to people you don’t necessarily know.
This is precisely the reason why it’s ideal for property owners and property managers to implement strict tenant screening procedures. As you would in your family home, you have the right to be selective as to who will be welcome to stay in your property. Here are some more reasons why a comprehensive tenant screening should be performed on all prospective tenants.
Safety of your tenants and the security of your rental property are of utmost importance. As a property manager it is your job to ensure that the prospective tenants will not pose any problems in the future by damaging your property and/or displaying disruptive behavior that can disturb, offend, or put other people at risk. This is especially important if the property you are renting out also accommodates other tenants.
A full tenant screening will provide you with a tenant’s criminal history, including sex offenses and terrorist activities. The criminal check will show you the dates of the crimes, where the crime was committed and often other details of the case as well.
Before you accept a tenant you will want to make sure that they are able to afford the rent and are in the habit of paying their bills on time. You can do this by verifying their employment and their income and by running a credit check on them. You will want to find out where they work and what their monthly income is. Requesting a copy of their most recent paystubs is common practice and tenants expect that you will ask for that.
Doing a credit check on all prospective tenants is important for your business because you wouldn’t want to have a tenant that is late with their payments or doesn’t pay the rent at all. After all, part of the rent they pay you is needed to maintain the property, pay real estate taxes and other expenses to make sure the property is a safe and livable place. Any tenant not paying their rent on time can have a negative impact on your rental business.
When tenants can show that they have sufficient income to pay the rent and have a history of paying their bills on time, your risk of having to evict them in the future has become very small which will result in a more profitable and smoother running property management business.
Federal laws offer protection to individuals against any form of discrimination when applying to rent or lease a property. It is against the law to decline a person based on their gender, nationality, religion, age, marital status, or even potential disability. While this is their right, there are certain instances that rejected tenants mistakenly accuse the property owner or manager of discrimination.
By having an official tenant screening process in place and screening all prospective tenants the same way, the basis for the rejection can be clearly shown and established, thus proving that the rejection was actually well-founded. This is a great way for property owners and managers to protect themselves from any undue liability.
To facilitate your tenant screening procedure, get help from professional property management services like Houserie.
The Importance of Thorough Tenant Screening. RealityTimes.com.
The Importance of Tenant Screening. PVTEYes.com.