One of the most important parts of being a landlord is keeping your tenants as long as possible. Tenant turnover is the killer of profits. It costs so much to have an empty rental and get it ready for the next renter.
The first step to avoiding this problem is finding great tenants in the first place. And that's best achieved through a thorough tenant background check. This process is your way to weed out those tenants who don't meet your standards or who seem like they'll be a problem.
Keep reading for the most important information you need to gather in your rental background checks.
During your tenant screening, it's always a good idea to get rental references. Previous landlords will be the best source for seeing what kind of renter they are. Asking for a couple of years worth of rental history will help you see the pattern of how long they tend to stay.
Great tenants won't have many previous landlords. And those they do have will give glowing reviews without issues.
Credit History and Score
When most people think of tenant screening, they're thinking of a credit history. That's an outline of their financial past, good and bad. A credit score is one of the best indicators of how well a person pays their bills.
As you're checking out an applicant's credit history, look for missing payments. The last thing you want is to approve someone who has a track record of not paying on time or in full.
Filling your rental property with trustworthy people is a great way to make sure there's no drama. A background check can help you flag applicants who may not fit your standards.
Before you begin, it's helpful to set clear boundaries for what is and isn't acceptable to find on a background check. Then you can move quickly through the applications without much debate either way.
Your rental income depends entirely on your tenant's ability to pay their rent. Income verification is key to guaranteeing you're going to be paid every month. Asking for a couple of months of pay stubs is usually enough to tell that the renter will have the funds available.
As a backup, be sure to gather a security deposit to cover any times when those bills can't be paid.
Things to Look for in a Tenant Background Check
When it comes to finding new tenants, it's important to do your research. Running a complete tenant background check is going to be the best way to get all the information you need.
But gathering all that can feel overwhelming. And that's where your property management team comes in.
The team at PMI Spruce Tree are experts in finding the very best candidates to fill your vacancies. Not only do we screen for the right fit, we can also market your rental to more applicants. To see how we can help you fill your rentals, schedule a free consultation today!