Screening tenants helps landlords find reliable renters who respect their property, pay rent on time, and reduce stress. Conversely, a poor-quality tenant may end up damaging your property, falling behind on rent, and causing you sleepless nights.
The National Multifamily Housing Council reports that around 45.6 million households in the U.S are renters. These tenants need to go through a thorough screening process before renting the housing units.
Let’s find out why tenant screening services for landlords are important.
What Is Tenant Screening?
This is the process used by landlords to evaluate potential tenants and decide whether they’re suitable for renting their property. A tenant screening report verifies the data provided by potential renters on the rental application and determines whether they have a positive history with rental properties.
With this report, you can choose tenants who pay their rent on time, adhere to lease terms, and contribute to a secure and positive community.
What Tenant Background Checks Do Landlords Use?
Among the most crucial landlord-tenant advice 2023 is choosing the right renter for a stress-free and successful rental experience. When screening potential renters, you should consider certain factors to ensure you find reliable and responsible tenants.
Most tenant background check services evaluate the following criteria when selecting a tenant:
Income
By verifying the income of a potential tenant, you can determine whether they can afford to pay rent on time. Reed & Company uses the best tenant screening tools available in the market for income and employment verification. This measure gives you peace of mind that the tenant can pay the rent monthly and still afford other living expenses.
Credit History
The credit history of a tenant reflects their ability to deal with debt and financial responsibility. When choosing the right tenants for your rental property, look for the following:
- A low level of debt compared to available credit
- A history of timely payments
- The lack of serious negative marks, such as charge-offs and bankruptcies
Background Checks
In your tenant verification guide, include a criminal history check to help in identifying potential red flags. Renting out your apartment to tenants with no criminal records ensures the security and safety of your property.
Rental History
It shows you whether you can rely on the renter. When carrying out this background check, look for positive feedback from their past landlords and a record of them taking good care of their previous rental properties.
Personal References
These provide additional insight into the reliability and character of the potential renter. Ask the applicant for references and contact them personally to find out what they have to say about the tenant. These references may be personal acquaintances, employers, or previous landlords.
Speaking with the tenant’s references will also help you understand their suitability for the community.
Which Are the Best Tenant Screening Tools?
If you’re looking for a tenant screening service that will cause you less stress and avoid rent default, there are a variety of options in the market to choose from. Below are some of the tenant screening tools for landlords looking to make informed renting decisions:
Hemlane Tenant Screening
This tool takes a hybrid approach to rental property management. Hemlane tenant screening service provides landlords with the option to be as hands-off or involved as they want to be, as they leave property managers to handle the rest.
Hemlane offers management and tenant placement services alongside free tools for accounting, tenant screening, and rental listing advertising. Tenant screening by Hemlane involves a comprehensive credit report that doesn’t interfere with the credit scores of potential renters.
This tenant screening tool also offers income verification and ensures a thorough renter vetting process.
Avail By Realtor.com
Avail provides property management services, including rent price analysis, maintenance tracking, online rent collection, and digital lease agreements. Property managers and landlords can use this tool to create customizable leases, rental applications, and marketing websites.
First Advantage
This tenant background check service serves large companies and property managers rather than solo managers and landlords. First Advantage boasts regularly updated and high-quality public sources, proprietary databases, and professional customer service.
Additionally, with First Advantage, you can pull tenant credit reports without the applicant.
Frequently Asked Questions
Which Is the Biggest Risk for Landlords of Rental Properties?
Among the most significant risks of renting out your real estate investment is the likelihood of incurring financial losses. It can result from various factors, including renting to bad tenants who are unwilling to pay rent or any other unexpected expenses. Furthermore, renters who fail to take good care of your property may cause you high repair and maintenance costs.
This explains why it’s essential to vet potential tenants before allowing them to live in your rental property.
What Is the Most Essential Section of a Rental Application?
When filling out a rental application, tenants should ensure that their credit score is good. A tenant with a good credit score has high chances of securing their tenancy. Renters should take their time to ensure creditworthiness before choosing to rent their dream home.
How Can You Choose the Best Tenant for Your Real Estate Investment?
Selecting the right renter can affect your peace of mind and the profitability of your rental property. Some of the tips you can follow to ensure you choose the best tenant include the following:
- Assess their creditworthiness and profile carefully
- Ask them to provide supporting documents and check them thoroughly
- Get insurance or a guarantee to protect yourself against non-payment
What Are the Responsibilities of a Landlord?
Landlords are obliged to deal with their tenants honestly and openly. Moreover, they should adhere to fair housing anti-discrimination laws. In case of any repairs, it’s the responsibility of landlords or property managers to ensure that the plumbing and air conditioning comply with the housing codes.
Enjoy Tenant Screening Services for Landlords With Reed & Company
Finding a good tenant for your rental property can make a significant difference between a financial disaster and a profitable year. With the right tenant screening services for landlords and property management insights, you can land the perfect renter in no time.
At Reed & Company, we handle rental property management while balancing the interests of landlords with the needs of tenants. We provide best-in-class advice and assist institutions, businesses, and individuals in making better property decisions.
Contact us today for unrivaled property management services.
