Background check for renters are becoming increasingly important to real estate owners and property letting businesses throughout the world, as there are tenancy protection laws in place which could grant rights to someone you find you desperately need to get rid of.
There may be no 100% foolproof answer to finding the right tenants for your buildings, but there are certainly sensible principles which you can follow. If someone has a recent history of evictions or of being unable to pay on time, it is almost certain that they will not make a good tenant. So the background check for renters has become an absolute necessity.
There are differing levels of tenant verification which you can follow, usually through an online portal. At the very least, you will need the Social Security Number and the identity of the potential tenant verifying. If someone is faking these to hide something, it is certain that it is something which would definitely need hiding.
The fact that they have not come to you and been up front about the situation should raise a red flag. If they are also featured in the list of recent evictions, you can forget about them even being candidates for tenancy.
Why Background Check For Renters Need To Be Carried Out?
Added to this basic search will often be a cursory examination of the available financial records. These will usually be limited to a list of bankruptcies and liens which have been issued. If your potential tenant is on that list, they are obviously not likely to be a good candidate for tenancy.
In the case of a bankrupt, it is not certain that will be a poor tenant as bankruptcy at least wipes out much of their debt problem. It is really one to asses on a case by case basis, unless the tenant has other problem issues which would rule them out in any case.
There are also more comprehensive tenant background checks which can be used to gain an even more thorough insight into the character of your prospective tenant. There are packages which include a type of criminal search, similar to the ones which are used by people looking to employ staff.
These will be more expensive, but it may be important to you to make sure that there are no criminals living in your properties. The sex offender database can also be searched from the same online portal, which may be exceptionally important for you if you are looking to offer homes to families.
Most Comprehensive Tenant Background Checks
The most comprehensive checks of all are those which involve verifying the employment and residence of the tenant. Often, this will include the previous residence, which can be extremely important.
There are many property owners who will give a tenant as false reference just to see them get accommodation somewhere else so they can be rid of them. This cannot happen if you go back to a place which the tenant has already left, and that owner has no incentive to give you anything other than an honest and accurate report.
Both the basic and the comprehensive background check for renters can be carried out online, as there are portals which have access to the databases which are used for this type of search. There will often be the option to add credit reports onto the basic search, and this is something many property owners choose to do.
There are several headaches which can grow to be quite extreme when you are trying to deal with non paying tenant. Getting rid of them can be far more difficult than you would expect, and the law is often no help. There are very sound reasons for carrying out thorough background check for renters.