The use of tenant screening background checks can help you avoid scams.
The idea of owning an income property and renting it out sounds very appealing. What a great way to earn extra income, and in some cases potentially have the mortgage of your property paid by the tenant’s rent money! It’s the American Dream with the added feature of a passive income stream. This is definitely possible, and many property owners have successfully accomplished this. Through a combination of excellent intuition, tenant screening by “feel” and just plain luck, there are landlords who have longtime trustworthy tenants or a series of good tenants in their properties for years without any major incident. However, this is definitely not the case for all landlords who do not use tenant screening background checks.
There are a number of pitfalls that go along with being a landlord, and there is always some risk involved. Most landlords and tenants begin as strangers to one another, and it is virtually impossible to know for sure if a person is trustworthy just based on sight, a short conversation and a handshake. Without a criminal background check it is impossible to be sure if someone has a criminal past. Possibly the biggest pitfall a landlord faces is the potential of renting to someone who rents a property with no means and often no intention of ever paying rent. The fraud often begins with a series of lies on the rental application. The lies can be about employment, income level and past residences.
For example, the scam could involve writing a big check for both the security deposit and first and last month’s rent. Then a day or two later the tenant will call you claiming to have a medical emergency in the family out of state, and needing to move away immediately to help with long term care of a relative. They will ask for a refund of their money and cash your check. Meanwhile, their original check will bounce, you could be out thousands of dollars, and the tenant will be long gone.
Another scam involves a tenant who, after the first month or two, simply stops paying rent altogether. In effect, he becomes a “squatter.” He fully expects an eviction notice and when he receives it, will sue the landlord for a fabricated reason, often “unsafe housing.” This scam artist knows “tenant rights” and the law like the back of his hand. He is an expert at working the system to his advantage. He will milk the situation by acting as his own legal counsel and filing numerous complaints, contempt charges, asking for recusals and stretching out the legal process in any way he can. Meanwhile, he could be living rent-free in your property for months or even years, often trashing the place. Meanwhile, you are accumulating stacks of legal bills, damage to your property and you have lost your peace of mind.
These types of scams can usually been avoided through the use of tenant screening background checks which include criminal court records and tenant eviction background checks. Don’t be a victim, and don’t play a guessing game with your property. Screen your rental applicants, and keep your peace of mind.
I couldn’t agree more. I always pre-screen my prospective tenants, and it has saved me a lot of money in the long run.
ideal alternative when the pproerty market gets scary. This is primarily due to the fact that an investment in pproerty options is much safer than investing in the traditional real estate