If you own rental property, you know that your first impression of a tenant may not be an accurate one. Someone may seem polite and professional when you first meet them and end up paying their rent late, ruining your carpeting, and having parties late into the night.
According to ezLandlordForms, background checks are very important when you are considering to whom you should lease an apartment. You can run a credit check, contact former landlords, and run a criminal background check in most states. You can find a company that provides background checks on the internet.
Background checks are very time-consuming, and it is important to know how to read various reports. Hence, it is best to enlist the help of a professional. They will take several steps when they review the paperwork of a potential resident.
The first thing that must be done is to call all of the applicant's previous landlords. In some cases, a person may have rented quite a few places in their lives, and several landlords will be called. Although it may be time-consuming, it is helpful to learn what people who do not know each other will say about the same person.
A background investigator will ask if rent was paid on time, how often it was late and if the tenant kept their apartment or rental home in good condition. They may ask if repairs or extra cleaning were necessary after the person moved out.
There are certain questions that a landlord may not ask by federal law. They may not ask if the person has ever been arrested or charged with a crime, their familial status, or their age. They cannot ask about religion, nor can they attempt to find a subtle way of finding out what a person's religious preferences are by asking if they need to know where there is a nearby temple or mosque.
Although the opinions and experiences of former old landlords are important, they are not enough to tell if a person will be a good tenant. You must also find out if they can pay their bills and if they will be a threat to the safety of other residents.
Criminal Background Check
It is always wise to do a criminal background check. You can find out if the person has any felonies or if they have been convicted of a violent crime. You can charge the applicant a fee for the background check, so you don't have to absorb the extra cost.
You should also check the Megan's Law website in your state. in some states, the names of all registered sex offenders will appear on that website. Professional background researchers will be familiar with the laws in each state.
Check the Credit History
The reason you invested in real estate was to make a profit. People need to have a place to live, and you are providing them with a home. If they can't pay the rent, you may not be able to pay the bills that you have. It is a good idea to run a credit check on them to make sure they are solvent enough to pay you each month.
Owning rental properties can be profitable and fun. Screening tenants properly is a good way to make sure the experience is a positive one.