One of the most effective ways to ensure intelligent tenant selection and connecting with high quality tenants is by conducting responsible background checks thorough screening of all applicants. A professional tenant screening service can take much of the guesswork out of this process.

Landlords should adhere to the following four guidelines to ensure they do responsible background checks and enjoy successful results:

1. Be Well-Versed in Federal and State Laws

Methods used for screening tenants must be in accordance with both federal and local laws. While state laws can vary, laws under the Federal Fair Housing Act of 1968 and Fair Housing Act Amendments from 1988 apply to landlords renting out property in all states. Landlords should apprise themselves of these laws to ensure all responsible background checks are conducted in a manner that is in compliance.

2. Screen all Tenants Equally

One of the principal rules landlords should follow is the screening of all candidates in a consistent manner. Doing more stringent screening for some clients and less for others is unfair and could culminate in a discrimination lawsuit. This is especially true when using screening methods such as examining a candidate’s online presence or social media accounts; such methods are fairly subjective, so guidelines and processes should be established ahead of time and used consistently for each applicant.

3. Don’t Leave a Paper (Or Digital) Trail

Landlords should also establish a practice of shredding sensitive documents after the background check is completed and the papers are no longer needed. Digital versions of any of these resources should also be deleted from computer systems.

4. Use a Professional Tenant Screening Service

While it is possible for landlords to do responsible background checks themselves, they can be time consuming and difficult to complete. Navigating court websites, pulling credit reports and interpreting the data can involve a learning curve that’s more stressful and labor-intensive than anticipated.

A professional tenant screener is experienced in how to glean the most relevant information efficiently and will provide a concise assessment so that landlords can make a truly informed decision. A professional service will also conduct the search in a manner that’s in accordance with the law, eliminating the risk of performing these checks incorrectly.

Tenant screening is a key component in being a successful landlord, and these four tips can help with performing responsible background checks.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

Landlords are inundated with advice and information about what to avoid in rental applicants, but what about finding the perfect tenant? This article offers a more positive spin on choosing quality tenants.

The perfect tenant – the following are the four characteristics of an ideal tenant:

1. Solid Income and Employment

Landlords own and rent property primarily for one reason: to make a profit. Successful rental businesses require reliable tenants who pay their rent on time regularly. One of the hallmarks of someone who will be able to accomplish this is an applicant for whom the monthly rent is one-third or less of their monthly income. Landlords should verify employment and income, taking care to ensure that it meets or exceeds this standard.

2. A Clean Record

The perfect tenant has no criminal record and no history of wrongdoing at the civil or federal level. One of the biggest red flags in rental applicants is a dishonest, negligent or violent past, and a criminal record can indicate one or more of these problems. It’s best to stick with tenants who do not have a criminal record, and a professional tenant screening service can help with determining if an applicant has any convictions or scrapes with the law.

3. No Past Evictions

The perfect tenant would also not have any past evictions. Past behavior is the strongest indicator of future behavior, and one of the biggest red flags for a rental applicant is having one or more evictions on their record. Calling previous landlords can assist in gaining insights about reliability as a renter, and a quality tenant screening service can also assist in gleaning this important information.

4. Good Credit

A good credit rating is another key marker when deciding who to take on as a tenant. Checking an applicant’s credit report can yield a wealth of useful information and insights about them. While it is up to the landlord to decide what is acceptable, renting to applicants with a credit score of 575 to 650 or higher is advisable. (Those who are renting out higher-end, more expensive properties may wish to require a higher minimum credit score.)

The perfect tenant has some key qualities that indicate reliability and trustworthiness; among them are verified income, a clean record, no evictions and a good credit rating. A professional tenant screening service can assist with verifying many of these important markers.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

While tenant screening background checks are a prudent and increasingly widespread practice, some recent events are making the need for screening in other aspects of property investment apparent. Court cases in both Illinois and Las Vegas, NV reveal that real estate professionals are not always who they claim to be in terms of reputation and trustworthiness.

Trusting Your Real Estate Professional

Unfortunately, wherever money is involved, fraud is possible. The real estate realm can be particularly risky due to the sharing of sensitive information such as personal details, social security numbers and financial information. While property investors are somewhat protected due to the licensing and standards required of realtors, it is still possible for an unscrupulous real estate professional to receive a license.

As the real estate market recovers, the risk of potential fraud committed by realtors also rises. While realtors are often trusted implicitly by those who sign on with them, sometimes trust that is given too freely can lead to disastrous financial and personal consequences.

A suit for dishonesty related to real estate was prosecuted recently in Las Vegas, where an Arizona agent was found guilty of fraud and conspiracy due to a mortgage lending scheme. The scheme defrauded lenders of over $24 million in the years leading up to 2007, when the bottom fell out of the housing market.

Negligence, Lack of Real Estate Professional Expertise Leads to Losses

Another lawsuit in the real estate realm was filed in Madison County, Illinois this past June 2015. An area couple is suing a brokerage firm there due to realtor negligence, which resulted in an improper property transaction in 2009. The documents drafted by the real estate firm were allegedly too vague and not properly supported or advised by an attorney. The couple was also not fully informed of their responsibilities and rights, their suit claims.

Taking Steps to Protect Assets

About half of all U.S. states do conduct background checks on realtors and other real estate professionals, but this means that half do not. Some states that do check backgrounds may not look very thoroughly into the backgrounds of real estate professional agents.

A criminal background search is simple with the use of a professional background screening service. Doing a criminal background search and a financial background check could mean the difference between connecting with a verified, reputable real estate professional, or potentially being defrauded by one with a criminal past.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

A quick Google search using the words “landlord horror stories” results in nearly 200,000 hits. Website after website is devoted to stories about landlords who find out far too late that the prospective tenants who seemed like the perfect match cause problems so severe they have to eventually be evicted, a process that can be long and arduous.

Some tenants quit paying rent. They may have a history of evictions. Others may have a serious criminal history. Landlords have discovered after the fact they have rented the property to a sex offender. All landlords should conduct a tenant screening background check prior to signing the lease agreement in order to avoid having their own landlord/tenant horror story.

Landlords need to conduct both background checks and credit checks on prospective tenants

Landlords need to have each adult who is a prospective tenant fill out a detailed application including authorizing the landlord to do credit checks and background checks. If more than one person is hoping to move in, it is possible that one person may have stellar credit with no skeletons to be revealed in the credit checks, but the other one may have monumental debts on their credit report along with numerous eviction reports and a criminal history.

1. Credit checks: Landlords often charge prospective tenants a fee to do credit checks. The credit check reveals whether or not the prospective tenant has the income to pay the rent and whether they have a history of late payments.
2. Background checks: A background check reveals whether the prospective tenant has any evictions on their record, whether they have a criminal history as well as relevant information that may be found in other public records.

Fair Housing Act (FHA) Compliance

Some landlords may be wary about running afoul of the FHA, which prevents landlords from refusing to rent property to people based on discrimination. People who have poor credit or a criminal history are not in a protected class under FHA and the FHA does not require landlords to rent property to them.

Doing credit checks and background checks can save landlords money as well as the stress and headaches that can be caused by renting to an unknown criminal or a non-paying tenant.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.