While you're at the grocery store next week, take a look around the room. Approximately one in four of the people you see have a criminal record, which translates to 80 million Americans.
Looks can be deceiving, especially when it comes to telling apart good tenants from bad ones. Some of the most prolific criminals of all time were charismatic, charming individuals. There's only one way to know who people really are: a tenant background check.
Tenant screening can tell you everything from credit checks to eviction history. Before you conduct one, though, we have some landlord advice. Here are five important things to consider about background checks.
1. A Tenant Background Check Requires Consent
You can make tenant screening a requirement for anyone who wants consideration. However, you cannot conduct it on a person without their knowledge. Federal law dictates that you need written consent before sending off their information.
Give written and verbal notice that you will be doing background checks on tenants. Do not push forward until you have a signed consent form. This builds the necessary trust for great repeat tenants, too.
2. Tenant Screening Isn't Bulletproof
Rest assured, there is a high level of accuracy when it comes to background checks. That said, people can still use sneaky means to hide their true past. Take the time to verify some or all of the information they provide.
For example, call past employers or landlords. One call could reveal that part of their record isn't quite factual, which presents a risk to you.
3. Pay Close Attention to Evictions
Most background checks can look into a person's previous rental history. This is perhaps the most important section, more than credit scores and employment history.
Look to see if their previous landlord has evicted them or taken them to court. You don't want a security deposit to be your only protection with these kinds of tenants!
4. Consider Co-Signers
Some people might check all the boxes minus a stable employment history. They're good people, they just don't have a secure source of income to afford the apartment. Depending on the situation, you might decide to rent to them with a co-signer.
Someone who cosigns assumes responsibility for paying rent when the tenants cannot. This adds a bit of surety in addition to the deposit and other protections.
5. Know the Fair Housing Act
The Fair Housing Act protects renters from discrimination as it concerns minority status. Denying a prospective tenant based on sexual orientation or religion can land you in hot water. In fact, an applicant can accuse you of doing as much regardless of your honest intentions!
Read up on the Act to avoid the potential for any unintentional discrimination.
Turn to PMI Cobb for Property Management
A tenant background check is a vital tool for putting good tenants in your rental property. That said, there are a few key things to know before making use of them. Use the above tips to keep yourself in the clear when screening tenants.
PMI Cobb provides professional property management and landlord advice all in one place. Begin your journey towards a prosperous rental experience with our free rental analysis tool.
