Tenant referrals and credit checks are two tools used when renting properties to potential clients. This is to maximize rental profitability and to manage your assets well. Running this simple online check will save you money in the long run as your rent is paid on time and your property is managed securely. There are companies dedicated to tenant screening and tenant screening, which are specifically designed to meet the needs of landlords and rental agents.
Tenant screening is primarily based on the experience of current employers and former landlords to assess suitability. Assessing a tenant's suitability is a top priority for any landlord, leaving it to an agent because it protects the real estate investment, reduces risk, and increases the return on investment simply by verifying the trustworthiness of the new tenant.
The best tenant screening companies provide quick results so you can make quick and calculated decisions. Landlords in a highly competitive market will want a quick turnaround in key view. A quick system for background checks can provide peace of mind and quick turnaround.
Referrals to former landlords and employers are only part of the tenant screening process. You should also review your new tenant's credit score to assess your financial stability. The most important areas to look at and a good online tenant screening company will offer it right away over the internet. Whether you have a county court decision (CCJ) that the tenant is satisfied with or is not satisfied with.
This will appear in your credit check if the tenant has previously owed your creditor and will remain in your credit history for 6 years. Unsatisfied CCJs require tenants to raise big question marks about the suitability of your property. If they owe money to someone else, why pay them on time?
Having a tenant credit check and seriously reviewing your tenants can provide a sound process for accepting and rejecting tenants. The most important thing for landlords and agents is to have a trusted tenant who pays on time and takes care of the property. The cost loss, stress, and cost of repairs experienced when a bad tenant is chosen can be monumental, but introducing a tenant screening process into the application process can help protect your wallet and investments from troubled tenants and avoid future disputes.
Reasons to Check the Information
As stated, possible tenants can enter false information and failure to verify such information will render tenant screening useless. The landlord must contact the referral provided by the applicant. Just like applying for a job, HR will contact your former employer to see how they did it in the previous job. The same is true for tenant screening verification. The landlord can contact the applicant's former landlord to request tenant behavior, rent payment issues, and more. This includes contacting the applicant's employer to check financial and work status.
Landlords must require tenants to enter correct information including contact information and addresses of at least two former landlords. This is necessary for the landlord to verify the information and to shape the tenant's behavior pattern.
Here are some common questions a landlord may ask to confirm possible tenant-provided information.
- Did the tenant pay the rent in full on time?
- Did you pay the fines obtained by the tenant?
- Did the tenant follow the policies and rules set out in the rental agreement?
- Did the tenant have behavioral problems or weren't getting along with their neighbors, and why?
- When and why did the tenant move?
- Has the tenant notified you 30 days before eviction?
- Was the apartment returned to its original condition except for normal wear and tear when the tenant moved in?
It is advisable to write a script with these questions so that you can thoroughly ask the former landlord and make sure that the applicant is a good tenant and will not bring any problems.
The landlord has the right to do this and can include tasks such as asking the employer to check the financial condition and so on.
There are companies that provide tenant screening services. These companies search through all the records and information they can get about their tenants and provide summary reports so they are easy to read and understand.