Tenant screening is crucial for protecting your rental property. It also enables you to have good tenants, giving you a stable cash flow and a higher ROI. However, filtering authentic tenants from several applicants can be a daunting task. It requires a rigorous screening process.
Tenant verification minimizes the occurrences of evictions, late payment or nonpayment of rent, property damage, and instances of complaints from the Homeowner’s Association (HOA) and neighbors alike.
If you are planning to rent out your property and are unsure how to set the criteria, the following information may help you.
The credit score is one of the primary criteria in evaluating the applicant’s financial capability. It indicates three crucial factors: delinquent accounts, actual debts, and pending debt. A high credit score secures a regular cash flow because these applicants are regular in payments.
However, if you are open to hiring someone with a poor credit score, you can focus on other things, such as resident score, and regularity in payments.
Nothing is more annoying than evicting a tenant, specifically when you are looking for a long-term tenancy. Tenants evicted previously are more likely to go through another eviction. To avoid this, you should check the tenant’s eviction history.
Eviction data services help you to check the applicant’s eviction background. It can help you to select your potential tenants out of several applications.
Skipping the criminal background check can put your property and neighborhood at risk. It will endow you with a more comprehensive understanding of your potential tenants.
Each state has a database that provides national criminal background records.
It mentions details such as crime, location, time, and imprisonment of the criminal. You can use this data for tenant screening and select applicants with no criminal background.
Once you have shortlisted your tenant, you should undertake a thorough verification of the documents submitted by the applicant. Making decisions based on accurate information may reduce the chances of eviction and legal conflicts.
You may ask your potential tenants to submit identity proof such as a driver’s license issued by the state, a valid passport, a travel visa, employment card, or social security number.
Verifying income shows the financial stability of the applicant. Those with valid employment are more likely to pay rent on time. You should contact the employer for employment verification and ask for current payslips to ensure the applicant receives a regular salary. It is advisable to have an extra photocopy and a backup of soft copies of the applicant’s documents for future reference.
In addition to the information mentioned above, landlords should also pay attention to fair housing laws regarding applications, pre-screening processes, and ways to handle denied applications.
Tenant verification is an indispensable part of the process of identifying the right tenants for your property. Gathering the required information can be overwhelming for nonprofessionals. For example, you may find it challenging to verify the authenticity of minute details on identity proof, such as the logo and government markers.
If not done correctly, you may end up qualifying a forger as your tenant. Therefore, approaching a Merced property management company for conducting a tenant background check can be a wise decision.
River Drive Properties is a property management company in Merced that provides high-quality property management services. Our team of knowledgeable managers offers detailed tenant screening services, pre-screening services and assists you in finding the right renters. Contact us for any Merced property management needs.