With a staggering rise in the number of tenant complaints, it has become inevitable to enforce a tenant screening process and learn the risks associated with high-risk tenants. A tenant who is careless about the lease agreement and your property may lead to a myriad of problems and financial stress.
Thus, implementing some ground rules for choosing tenants for your investment within your rights can help you avoid high-risk tenants and secure your investment.
Here are 5 non-negotiable rules for avoiding pitfalls and renting intelligently:
1) Past Evictions
Tenants who have been previously evicted by former landlords due to default in payments, damage to the property, or failing to follow the rules and regulations of the lease can be termed as high-risk tenants. A tenant screening service can help you determine if a tenant has been evicted or was involved in a legal proceeding with a former landlord.
It is important to delve into any risk factors and learn about the cause of past evictions to avoid high-risk tenants from behaving irresponsibly in the future as well. By performing a background check for renters, you can get a clear idea about the past behavior and be a better judge of their future behavior0.
Always, remember that evicting a tenant is a not only a long affair, but also an expensive one. Picking the right tenant can save a long, costly eviction process further down the line.
2) Monthly Income of Tenants
A rule of thumb suggests that the monthly income of a prospective tenant should be three times the cost of the rent. A tenant screening report will help you know about the creditworthiness of your prospective tenant and alert you to any potential threats such as bankruptcy or foreclosure.
By ordering a background check for renters, a landlord can get the information about the credit history of tenants over the past years, which can help you predict whether or not they’ll be able to pay their rent on time every month. A tenant screening service will also include a credit score that will help you learn how the prospective tenants have handled credit in the past, thus letting you judge their financial standing.
3) Good Referrals
Good, solid referrals and recommendations can aid in the process of background checks for renters. Positive reviews about your prospective tenant can reassure you of their authenticity and genuineness.
Ask for at least three names of references from past landlords or employers with their phone numbers and length of acquaintance. If the applicant is unable to provide them, this may be a red flag that they might be trying to misguide you. Be sure to follow up with each and every person listed by the tenant.
4) Criminal Records
A prospective tenant with a long history of criminal activities is the tenant you will want to avoid. A background check for renters and tenant screening reports will help you judge whether the future tenant was alleged for minor charges or if they have faced multiple convictions for serious offenses.
A criminal past is a non-negotiable aspect for landlords looking to avoid high-risk tenants and minimizing their stress.
Tenant screening can help you to screen the right tenants and give all the necessary information to make an informed decision.
5) Dishonest Tenants
A dishonest tenant can prove to be very difficult to deal with. They may lie to avoid adhering to the rules and regulations of the lease agreement. A background check for renters and tenant screening can help you to be extra vigilant to ensure the truth about the details provided by the prospective tenants
If you find any false information provided to mislead you, it is best to avoid such tenants as they will behave irresponsibly and deceitfully in the future as well.
The only way to avoid tenants who are unqualified for your property is to screen them vigilantly with the help of a quality tenant screening process. A background check for renters might sound like a long and tedious precious, but it is the only way to secure your investment and find any piece of crucial information that may be missing.
