subject: 4 Recommendations For What A Thorough Tenant Screening Process Should Include [print this page] To avoid property damage, failure to pay rent, and other negative outcomes, property owners carry out tenant background checks. Tenant screening must follow federal fair housing laws; otherwise landlords can face hefty fines. Below, we provide recommendations on you're a thorough tenant screening process should include.
1. Analysis of eviction history.
Evictions indicate that a renter has posed major problems for previous landlords. County and federal-level databases contain information on evictions, but accessing this information is too time-consuming for the average small property owner. This is one of many reasons why many property managers and owners choose to outsource their background check procedures to third parties. Companies that perform tenant background checks have often dedicated years to gathering eviction history tools, so they can usually perform this service at a lower cost.
2. Meticulous check of criminal history.
The best way to check criminal history is to carry out a check of all counties where the resident has lived for the last seven years. State, federal, and county level databases should be scoured to ensure that a potential resident is not a criminal. Again, most property owners simply don't have the time to carefully review criminal history databases. However, if you're feeling ambitious, and you plan to carry out tenant background checks on your own, you should be aware that a federal search of state prison history, court records, and violent and sexual offender lists is available for 40 states. You'll also want to check county records for everywhere the tenant has lived for the last seven years. Lastly, be sure to check state records and the 49-state registry of sexual offenders.
3. Examination of personal credit history, including liens.
Reviewing an applicant's credit history is a good way to determine whether they're likely to pay rent consistently and on time. A financial lien is usually imposed on someone who has demonstrated poor financial responsibility, as a way to pay back lenders. Searching for liens on each potential tenant isn't easy - especially if you lack the resources that tenant screening background check companies have - but it's important because it helps establish personal character. Be sure to check former names used by the tenant; otherwise you could miss an important financial peccadillo.
4. Rental history, personal references, and employment history.
Most landlords begin the tenant screening process with a rental application. This fairly standard form asks for personal references, along with rental and employment history. Reviewing employment history helps property owners appreciate each tenant's financial capability. To put it simply, this part of the tenant screening procedure shows whether a person can afford to pay rent.
A section for rental history is also included on most forms for tenant background checks. To be sure that the applicant isn't padding his or her rental reputation, it's smart to verify claims by calling each previous landlord. Similarly, following up with the applicant's personal recommendations is a good idea.
Rental and employment history and personal references are useful, but they rarely tell the whole story of a person's reliability as a renter. To conduct a thorough tenant background check, be sure to scan criminal databases and run a credit check as well. And if all of this just sounds like too much work, remember that outsourcing to a professional tenant background check company can make the tenant screening process much easier.
