Don't risk your property with a bad tenant! Tenant background checks are a must to ensure that you're renting to the right people.
In 2012, the National Association of Realtors found that the average rental property owner lost $5,525 per bad tenant.
Do you want to rent out your property but are unsure whether tenant background checks are worth it? Keep reading to learn why tenant screening is vital for landlords.
What Information Is In a Background Check?
The information included in a background check offers insights into your application decisions. Consider every aspect of the information that you find.
- Credit Report
- Criminal History
- Eviction History
- Employment History
- Personal References
- Income Information
Not all problem tenants will have a criminal record or bad credit. Get tenant screenings that check several things like employment history and personal references.
In doing so, you may be able to avoid learning important lessons through costly mistakes.
Avoid Tenant Problems
By performing tenant background checks, landlords and property managers can avoid dealing with problematic tenants. Property managers can then weed out potential renters who may be unable to pay rent on time, damage the property, or cause other problems.
Identifying Criminal History
Tenant criminal background checks are an essential part of tenant screening. By identifying criminal history, you can avoid tenants with a history of property damage, drug offenses, or other illegal activity.
In many places, landlords cannot discriminate against people so criminal backgrounds with a blanket "no criminal backgrounds" policy. But some exceptions are prudent for the greater good of the community. For example, if your property is near a school, you want to avoid renting to a sex offender.
Avoid Costly Evictions
Evictions cost money. It is in your best business interests to have a low tenant turnover. One way is to gain access to the applicant's credit score and income sources. This can help you better picture the tenant's financial situation and determine if they'd be a reliable tenant.
Protect Your Investment
Your rental property is a significant investment, and you want to ensure that it is well-maintained and protected. A tenant background check can help you avoid tenants who may be more likely to cause problems and damage your investment.
By screening tenants, landlords and property managers can reduce their liability risks. If a tenant is injured on the property or causes damage, the landlord may be held responsible if it is found that the tenant should have been screened more carefully.
High Repair Costs
Bad tenant behavior can cost landlords thousands of dollars in damages and repairs. Tenant background checks can help you avoid problem tenants who are more likely to damage the property or cause other problems.
Low Rental Income
Bad tenants can also lead to low rental income. Landlords may have to spend money on tenant turnover rather than using it for rent. As the saying goes, a bad tenant costs more than a vacant apartment.
Tenant Background Checks Save Time and Money
If you're worried about tenant background checks, don't be! With the right strategies and tenant screening tools, landlords can easily find quality tenants who will treat their property right and pay rent on time.
By avoiding tenant disputes and other costly problems, tenant background checks can save you money in the long run. So why take a chance on renting to the wrong tenant? Perform tenant background checks and avoid tenant problems today!
Chattanooga Property Management is here to help you through the process of finding quality tenants who will respect your property and pay their rent on time. Contact us today to get started!