The success of owning a rental and making an income from it hinges on one key factor: filling it with tenants. And not just any tenants - you want reliable, trustworthy, and decent people living in your property.
This is why a tenant background check is absolutely vital to ensuring you fill your rental property with tenants who will not only pay their rent on time but keep the home in decent condition.
Here are some of the key steps you ought to follow as a landlord in today's day and age.
Conduct a Credit Check
Your first step when conducting a thorough background check on a potential tenant is to scope out their financial history via a credit check. You need to make sure that they are reliable in terms of paying their rent - not just on time, but without default.
Look for past payment defaults or missed payments and make sure to set a minimum credit score requirement.
Ask for References
References are one of the best ways to ensure you're renting to someone decent. Make sure you ask tenants for a previous rental history and contactable landlords. Do some research on what they were like as tenants and how they maintained the property while they lived there.
It's also vital that you ask about employment history. Make sure potential tenants offer a detailed recount of where they've worked (and currently work) and confirm whether their income is enough to meet the rental payments.
Perform an Identity Check
Another important step is to conduct an identity check. Always ask for a copy of their government ID, a copy of their passport, and driver's license, if applicable. All of these documents should prove and confirm a tenant's identity.
Ask for Additional Information If Needed
The above steps are pretty standard in terms of a general landlord screening guide. But if you want to take things a step further (in case you have doubts), there is no harm in asking your potential tenant for further information.
A simple example is requesting a short written profile about themselves and their hobbies/interests so you can get to know them a little better. This is also an opportunity to ask about any pets they own. Ask them to provide details on the pet breed, age, and personality.
It's also a good idea to meet your tenants in person so you can assess them in even more detail. Take note of how they interact with you and what their demeanor is like. Try to gauge whether they seem dependable, trustworthy, and genuinely interested in taking care of your property.
It might not be easy to gauge these things from one short meeting, but you can always trust your gut instinct.
Need Help With Your Tenant Background Check?
As a landlord, screening and vetting your tenants must be one of your top priorities before you fill your rental. If you're unsure of where to start in terms of finding the right tenants, you probably need the help of a property management expert.
PMI Property Management, based in Dothan, will take the stress out of your tenant background check and do all the nitty gritty work for you. Want to learn more about our expertise? Here's what to expect from our tenant screening process.
