Tenant selection properly avoids long-term problems

A tenant screening is a vital piece of finding a tenant to take care of a property and avoiding tenant issues such as late payments, high turnover rates, and property destruction. As a landlord, it’s important to protect a real estate investment and be able to distinguish between good and bad tenants.

When it comes to selecting tenants, all landlords must comply with federal fair housing rules. These rules make it illegal for a landlord to discriminate against a prospective tenant based on race, gender, national origin, religion, marital status, or disability. While these are the statutes at the federal level, there may also be local statutes that homeowners must follow.

credit checks

In order to put the right tenant in a property, it is vital to know that the person has a low credit risk. Landlords must be sure that the tenant will pay rent on time and be responsible when it comes to an apartment or other property.

In order for a landlord to accurately check credit, it is crucial to verify the tenant’s income by having the tenant provide pay stubs. A landlord should look for tenants who have an income three times the rent, as a general rule. Another thing a landlord can do is check the tenant’s credit. This will provide information about the tenant’s income to debt ratio, as well as verify a history of on-time payments.

criminal checks

All criminal information is considered public record and is accessible to landlords looking to gain a better understanding of a potential tenant. A thorough criminal background check will provide information related to major and minor crimes.

When it comes to running the criminal background check, there are several different places to look. This can take a long time, as there is no national database that provides all the information in one place. Another thing to keep in mind is that state and city housing laws may prohibit landlords from turning away a tenant based on certain crimes. For this reason, it is incredibly important that homeowners are familiar with the laws of the state and the local area.

When it comes to finding the ideal tenant, information is key. Obtaining a complete history on a tenant and running a full criminal and credit background check will identify tenants who are likely to take care of a property and pay rent on time.