A landlord in the Triad area is likely to make 2% more than the national average. If you're a new landlord, there are a lot of things that are important to know. Some things you'll naturally pick up as you go along, but there are others you really don't want to have to learn the hard way.
The importance of doing a tenant background check for all new tenants is one of them. The tenant screening process is one step in finding renters for your property that you don't want to skip.
There are many good reasons for this. Read on to find out what they are now.
Why the Tenant Screening Process Is Important
When you're a landlord, your property is your greatest asset. It's the thing that enables you to make money, and as such, it's an integral part of your business. So if it becomes damaged or unusable in some way, you're going to be in big trouble.
Would you let a complete stranger come and stay in your home, use the amenities, and have their friends over without ever finding out anything about them? Most people wouldn't. But if you fail to conduct tenant background checks, this is essentially what you're doing.
Although in many cases, you'll never really know your tenants all that well, screening tenants allows you to weed out candidates that you wouldn't have comfortable occupying your home.
How to Screen Tenants
Tenant screening is something you can do yourself, or alternatively, you can have a property management company handle this step for you. No matter who's conducting the checks and screenings, they should follow roughly the same format.
First, you should always try and meet tenants face to face so you can show them your property and also get a sense of the kind of person they are. Have them fill out a short form while they're there detailing simple personal information. From here, you can narrow down your candidates to those you want to do a thorough background check on.
The Tenant Background Check
When conducting a tenant background check, there are a few different things you'll be looking for.
- Will they be a reliable and stable tenant?
- Can they afford the rent?
- Are there any signs they'll pose a problem in the future?
You can do this through a number of different means. Ask for a copy of their bank statements to ensure they've got enough money coming in each month. You can also perform a credit check.
Next, ask them for references. It's best to get one from both their employer and a former landlord. Note that none of this is a requirement to get from new tenants, but it is recommended for your own protection.
Find the Best Tenants for Your Property
At the end of the day, you're looking for tenants who will pay their rent on time and take good care of your property. A tenant background check is one of the best indicators of whether this will be the case or not.
If this sounds like a lot of work to you, you could benefit from working with a Triad property management company. Give us a call today to see what services we offer.
