You just received two applications from potential tenants:
- One has great credit
- One has poor credit
Which tenant do you prefer?
Most landlords would choose the one with great credit. Approximately 34% of Americans have bad or poor credit. Few have perfect credit, but the rest are somewhere in between.
The only way to know about a person's credit is by performing a tenant background check. Luckily, this isn't the only thing a background check reveals.
Running background checks is a strategy every landlord should use. Here are some essential steps and tips to help you know how.
Ask for Permission
Before running tenant background checks, you must ask for permission. To do this, provide each potential tenant with a background consent form.
When they sign this tenant consent form, they agree to let you run a background check. You should hand one out to every tenant that applies. Do this for every rental property you own.
Some landlords also charge a few for this service. After all, running background checks costs money and requires time.
Acquire the Tenant's Information
In addition to the consent form, you must acquire some information. To run a background check, you'll need the tenant's:
- Full name, including previous names
- Birth date
- Social security number
- Current address
If the tenant will have another adult living there, you can also ask for their information. You'll need it to run a tenant screening on them.
Research It
Offering rental properties in Lakewood is a lucrative career. But choosing the best tenants is a crucial part of your success. That's why you need to run tenant screenings.
Once you have a person's information, you can screen them in several ways. One option is to research the information yourself. The other option is to hire property managers in Lakewood, CA.
You can learn many things regardless of how you run the background checks. First, a tenant screening tells you a person's credit history. People with good credit demonstrate a sense of good money management habits.
Additionally, you can learn about the person's criminal history. You can also learn about a person's job, income, and previous rental experience.
Contact the References and Previous Landlords
One final step for your real estate in Lakewood is to contact the references. You may also contact the person's previous landlords.
Checking these things is one of the best screening techniques you can use. You'll learn about the person's habits, personality, and creditworthiness. You'll also learn if they pay their rent on time and care for their property.
Run a Tenant Background Check the Easy Way
Running an effective tenant background screening protects you. It helps you find great tenants. It helps you protect your finances and properties.
But, running tenant background checks is complicated for some. There is a solution: Hire PMI Patron.
We're a property management firm offering the highest quality services in the area. With over 20 years of experience, we can help you improve the quality of your rental property business.
Are you ready to learn how? Call us today.
