Conducting Background Checks: A Must for Landlords?
The decision of whether or not to rent out a property should never be taken lightly, and as a landlord, it is important to take every step necessary to ensure that your property is kept in good hands. A key part of this process is conducting background checks on all potential tenants, which requires taking the necessary steps to gather as much information as possible.
Why Are Background Checks Important for Landlords?
Conducting background checks is a necessary precaution for landlords when considering a tenant for their rental property. This helps to ensure the trustworthiness and respectability of all people living on the premises. In these background checks, the landlord can examine a tenant’s credit score, criminal record, and rental history. This can provide assurance that the tenant will be a responsible occupant for the rental property and will not take advantage or default on the lease.
What Can a Background Check Reveal?
When conducting background checks for possible tenants, there are several aspects that can be revealed. An effective background check will typically give the landlord information on the tenant’s:
- Credit score
- Criminal record
- Rental history
- Employment history
- References from previous landlords
- Current address and contact information
How Can a Landlord Gather Background Information?
There are several steps landlords can take in order to effectively gather background information on a tenant. This usually involves contacting current and former landlords as well as any references provided by the tenant. Additionally, a landlord can obtain a credit report and background search on the potential tenant.
What Happens if a Landlord Finds Negative Results?
While most landlords are looking for positives in a potential tenant’s background checks, there are times where negative results may be found. Negative aspects in a background check can suggest that the tenant may not be the ideal occupant of the rental property.
In this case, the landlord will have to assess their decision and decide if the tenant can be trusted to responsibly occupy the property. If the tenant checks out in all other aspects apart from their credit score, the landlord can always require the tenant to pay a larger security deposit to help protect the property in the event of a breach of contract.
The Benefits of Using a Background Check Service
In order to make the background check process more efficient, landlords are increasingly turning to third-party services, such as Experian’s background check service. This helps the landlord to conduct background checks quickly and accurately. The advantages of using a background check service include:
- Instant background checks.
- Easy to use and accurate.
- Detailed data about the tenant.
- Reduction in paperwork.
- Quick decisions.
Conclusion
Conducting background checks is an important part of the landlord-tenant relationship. It ensures the trust and peace of mind of both parties and proves that landlords take the decision of placing a tenant in their property seriously. Utilizing background check services is the best and most efficient way to conduct such background checks, as it provides detailed information and can make the tenant screening process much faster. It is clear to see why background checks are a must for landlords.
What methods should landlords use to conduct background checks?
1. Credit and Income Checks: Reviewing a tenant’s credit and income is one of the most common ways landlords conduct background checks. Income verification can vary by state, but usually requires copies of pay stubs and bank statements.
2. Criminal Background Check: A criminal background check will reveal any criminal history over the past several years in areas in which the tenant has resided. It’s important to note that there may be restrictions in some states when it comes to considering criminal history as part of the tenant screening process.
3. Landlord References: Landlords can use previous landlord references to get an idea of how the tenant has handled their rental responsibilities in the past. Most landlords will ask questions related to rent payment history, upkeep of the property, and lease violations.
4. Employment Verification: Landlords may also require proof of employment in the form of pay stubs or a letter from an employer. Verifying a tenant’s employment helps ensure the tenant has a steady source of income to maintain rental payments.
5. Social Media Check: Some landlords may choose to conduct a social media check on the tenant. This will allow them to review posts and pictures to learn more about the tenant’s values, lifestyle, and behavior. However, it’s important to be aware of discrimination laws when considering a tenant’s social media activity.
What types of information should landlords include in background checks?
1. Current and previous residences
2. Credit history
3. Criminal background
4. Employment verification
5. Rental references
6. Income verification
7. Sex offender registry check
8. Landlord history check
9. Social media check