Cost and Prices

Tenant Screening has real advantages for landlords.
From reducing your risk to and tenant turnover, to improving everything from
cash flow, profits, and your chances of sleeping at night — tenant screening has become an integral component of
smart landlords’ standard procedures.

Why Prescreen Tenants?

Because when
you lease your property to a complete stranger, you are putting yourself at
great financial risk. Knowing your
prospective tenant’s previous rental, credit and job history is essential when
determining if they will be an acceptable risk.

Landlord Risks

Your new
tenant could pay rent late—or not at all. They might steal or damage your
property. They could abandon your rental unit with no notice, owing you back
rent. We’ve all heard stories of bad tenants taking appliances and light
fixtures when they move out—you don’t want that to happen to you!

And there’s
risk to surrounding neighbors, as well. Being unaware of a person’s criminal
history before placing them in your rental property is just not a good idea.
Not only are neighboring adults and children at risk of being harmed, but you,
as the landlord, could be held liable for your tenant’s actions. In a litigious society, mitigating your
chances of being sued is absolutely necessary.

What Landlords Need to Know

Is the
prospective tenant employed? If so, how long have they been with their
employer? Job stability is a favorable sign. How strong is the tenant’s credit history? Are there
liens and judgments against them? What
about previous evictions and other legal problems? Has the prospective tenant been convicted of
any crimes—and if so, what was the offense?

What a Tenant Screening Report will
Reveal

Prescreening tenants will show whether your applicant
has a favorable history with previous landlords, allowing you to avoid tenants
with a history of late payment or evictions.

Tenant screening will reveal whether
the prospective tenant pays his or her bills on time, including credit cards
and loans. It will also reveal outstanding judgments or bankruptcy filings, as
well as previous addresses to compare with those supplied on the application.

A tenant criminal background check will ensure that your prospective
tenant’s information is correct—such as name, Social Security Number, and
current address. It will also tell whether the person has any criminal record at the state, county,
and national level (subject to state law).

You’ll know
whether the applicant has been convicted
of a crime or not, along with the type of offense, date, and locality. Sex
offenses are also reported, but information varies by state. Finally, tenant
background checks reveal any aliases used, incarcerations, and whether the potential
tenant has been placed on federal terrorist watch lists or is listed as an
international narcotics trafficker.

Things to Remember

You must
obtain the applicant’s permission to conduct a tenant background check—which can be a standard part of your
application procedure. The notification must be a separate document,
however. Also, all information you learn
from a credit report must be held in strictest confidence, and never shared
with third parties. Your applicant may have a right to the report—check your
state’s guidelines and the Fair Credit Reporting Act (FCRA) to be sure you are compliant. If you reject an applicant for credit
reasons, you must advise them in writing. E-Renter can handle your background screening
to ensure you are within the
guidelines of the FCRA.