Verify mugshots and basic biographical details to confirm the individual’s identity. Beware of False Positivesįor tenants with common names, it’s possible for an innocent person to be flagged. Safeguard applicants’ sensitive information and restrict access only to those who need it. Store applications securely, depending on your state’s statute of limitations. Avoid comments about personal details, as they could be used against you in a housing discrimination lawsuit. Only note information relevant to rental criteria, such as credit score or income. Fully completed applications are crucial for eviction proceedings, providing proof of tenant dishonesty and reducing risk to other tenants. Incomplete applications may indicate hidden issues. Require Completed and Signed Rental Applications Identification fraud is one of the most common forms of fraud in the rental industry. Perform separate background checks for spouses or roommates, and watch for attempts to use a relative’s information instead of the actual applicant’s. Conduct Background Checks for All Adult Applicants Ask how consistent their rent payments were, if there were any issues during the tenancy, and the condition of the property once they moved out. This step is extremely important, as it gives you an idea of how the tenant has treated previous rental properties. To obtain a more objective evaluation, reach out to previous landlords. Contact Two Former LandlordsĬurrent landlords might provide glowing references to encourage problematic tenants to leave. Look for mentions of criminal activity, incarceration, or affiliations with hate groups or gangs. Review Social Media ProfilesĮxamine applicants’ Facebook, Instagram, or LinkedIn accounts to verify employment and residence histories. This also gives you an opportunity to ask some questions about the tenant and their boss’ experiences with them in the workplace. If you request a phone number from their employer, it’s never a bad idea to give them a call. To mitigate fraud risk, request three months of bank statements. Websites like and enable individuals, such as small business owners or contractors, to create pay stubs, but they can also be misused for deception. Nowadays, with widespread access to computers, scanners, and photo editing software, forgery is easier. In the past, producing a fake pay stub was challenging. This also helps to you prevent any personal bias from influencing your decisions when choosing a tenant. Be prepared to demonstrate how the complainant failed to meet these lawful tenant screening standards should this situation arise. To defend against discrimination accusations, create and document impartial criteria related to race, gender, disability, and familial status. Sometimes, these applicants belong to a protected class under federal or state housing regulations. Occasionally, landlords must reject applicants. Establish and Document Written Eligibility Requirements To ensure that you’re only renting to the best potential tenants, follow these screening tips: 1. Background checks cannot foresee future criminal behavior or uncover undiscovered crimes. You may end up with property damage, consistent late rent payments, or have to take legal action.Įffective tenant screening software is helpful, but even the most advanced systems may not detect every potential issue. Many property owners have faced negative consequences for overlooking warning signs or giving questionable applicants the benefit of the doubt. Conducting a thorough tenant screening process and being selective with who you let rent your properties is essential if you want a successful investment. And once tenants have moved in, you can’t simply have them move out. The quality of your tenants can have an immense impact on the profitability of your rental properties.
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