The secret to being a successful real estate investor who leases or rents property really depends on how good the tenants are. Good renters can make owning residential or commercial property enjoyable, and bad tenants can make it a nightmare. There are a few steps that every good landlord should take in order to ensure good and desirable tenants. Even commercial real estate owners, as well as city leaders are putting into place a background checks system that includes tenant screening with detailed information about each prospective renter.
In a recent article published in The Daily Northwestern, Evanston, Ill., an advocacy group designed to help residents with landlord interaction, advised tenants on lease agreements, background checks, and other agreements that are binding and routinely expected from every landlord. The group stressed that a landlord who requires background checks on prospective tenants should indicate to them that the property is taken care of and the landlord cares about the well-being of the tenants.
Prospective renters can look great in appearance, but looks can be deceiving. Tenant screening background checks will help determine facts about a tenant. You should require a detailed application from a prospective renter and get personal references and past landlord names. This information will probably be positive, and a landlord’s next step should be a full tenant screening process that includes a criminal background check.
A tenant screening background check may also include a credit report, and the landlord must get permission from the prospective renter that the check will be conducted. Obtaining a background check that includes a criminal record and an eviction record search will tell the landlord if the applicant has an eviction or criminal record and other valuable information to determine if the applicant is a desirable tenant.
Upon initializing the tenant screening process, make sure the rental application includes the prospective tenant’s personal information. Find out about employment and other income, involvement in any pending lawsuits, landlord history including previous address and reason for leaving.
No property owner, whether residential or commercial, wants to rent their property to undesirable tenants. Never make the decision to rent based on first impressions or oral agreements. Conducting a tenant screening background check will help avoid bad renter mistakes from happening, keep your property safer, and make investment property an enjoyable and profitable experience.