By now, we’ve established many times over that tenant screening is one of the best ways to keep your investment safe, but also focus on the tenant safety. However, you’re not the only beneficiary of thorough screening — so are your current tenants. Tenant retention is one of the best ways to succeed in this business, and one way to make sure your tenants stick around is to give them a safe environment where they feel comfortable. By screening their potential neighbors, you’re doing just that.
How Tenant Screenings Relate to Tenant Safety
Many of today’s available screenings include national background checks and eviction history so that you know what sort of tenant your applicant will be, no matter where they hail from. Some screening services, particularly from “free tenant screening” sites, only accesses information at the local level. If an applicant lived out of state at one point or another, you might be missing out on vital insights.
While spotty credit reports are not in and of themselves an indicator that someone might be a poor tenant, they can reveal a great deal about a person’s habits, particularly when it comes to paying for their housing on time. Recent changes to credit reporting can make this more challenging, so it’s a good idea to read up on FICO and VantageScore so that you understand exactly what you’re reading. Rather than getting hung up on numbers, it’s more important to look at patterns in an applicant’s credit history. It may not seem like another tenant’s financial reports will impact your current tenants, but a non-paying tenant can impact those around them in many ways.
Why Background Checks Work
A criminal background check is probably one of the most revealing ways to make a good decision about prospective tenants. Naturally, you’ll want to avoid any and all sex offenders — with online registries, current tenants will find out very easily if there’s a sex offender in their midst, and you may lose good tenants if they feel unsafe. Likewise, someone with a history of petty theft, drug use, breaking and entering, or vehicular crimes will likely not be a good fit for a multi-unit property. We don’t mean to imply that people cannot be reformed, but you must use your best judgment when it comes to keeping your current tenants secure.
If you’re ever curious about the legality surrounding how you can select tenants, consult your personal legal counsel. We’re happy to offer whatever advice we can, and highly recommend our well-rounded and affordable screening services.
Our RentalConnect Can Assist In This Process
As always, we recommend our RentalConnect program as an added tool for selecting the right tenants for your property. RentalConnect offers property owners and landlords a great alternative to the expense of full tenant screening. This service requires no on-site visit, sign-up, or membership fees, making it extra convenient. The service fee is paid by the applicant. Available 24/7, RentalConnect is fast, easy, secure, and delivers reports needed to make an informed decision, including a credit report, a national criminal search, and a national eviction search. Reach out to us for more details!
Landlords Property Managers Contact TSCI