Landlord’s Guide – Tennant Background Check
A tenant background check helps you to see anything in in-depth mode. The goal is to ensure that nothing is hiding beneath the surface.
Dealing with a problematic tenant is such a nightmare. Tenant screening helps identify any red flags earlier.
Tenant background check in a nutshell
Checking the background of your prospective tenants is essential. It allows you to get the image of the tenant’s behavior in the past for various aspects.
The data can come from various places, but these credit bureaus are notable sources. They are such as Experian, Equifax, and TransUnion.
Those things help describe a picture of how accountable a tenant might be. Some landlords may decide to pay attention to specific details, while others accept the overall credit score.
#1 Ask for an application
The first step of a tenant background check is an application request. The form is available at the local real estate association. You can also make one on your own.
Make sure that the form covers anything you want to know about a tenant. Those things include:
- Current and previous employers;
- Income level;
- Relevant financial information
- Previous landlords contact information;
- Lifestyle information, including pets and numbers of occupants;
- Personal references.
#2 Credit check
Several states allow a landlord to charge the tenant for a credit background check. Meanwhile, some others allow tenants to put the cost on the landlord.
Equifax Identity Report lets you check the previous credit history up to 10 years ago. What should you check on the credit report?
Credit history is an essential part when running a credit check. You should check out for any late payment, charged off a credit card, collection accounts, and other major issues.
Other than that, don’t forget to check the current debt. Dealing with a tenant who carries hefty loans isn’t what you look for.
#3 Background check
A background check is another crucial thing to consider. Even though it sounds too personal, some companies even offer an investigation service for a fee.
The report consists of eviction history, credit history, criminal history, and various public records. These reports are available for order through the social security number of your prospective tenant.
You may want to reconsider if a prospective tenant has an eviction history. Feel free to ask for details about the event.
Criminal records seem like a big deal for many landlords. However, criminal records can be significant or otherwise. If the document seems serious, it may expose you and other tenants to danger.
Public records allow you to see your tenant’s legal battle in the past. Some of them might get sued, which appears on the public record. What if the prospective tenant was sued for unpaid child support, unpaid rent, or other financial issues? You better pass.
Those three things above are the basics of whether or not you accept a prospective tenant as someone who rents your property. It helps to know what you are dealing with.
And this is the end section of the Tenant background check.