Nowadays, people who own a house can consider themselves lucky. If we think about the general real estate market tendency, we can understand why most landlords consider their property a good investment for the future.
To best way to ”exploit” your property is to rent it, but when you decide to do this, you have to be 100% sure that you are ready to let someone else use it. Now, a fair question comes to your mind: how can I know that my future tenants are trustworthy people?
We all know that it’s hard to trust somebody on the first sight, especially when that person wants to rent your property. Experts from the real estate field are ready to help you develop a professional landlord-tenant relation, so they are willing to share some helpful tricks.
A background check is the best way to find out if a person will be a good tenant
Background check seems to be an activity performed by the Police, but every landlord can become a private detective when it comes to choosing the right tenant. Actually, it’s better to be safe than sorry, because you’ll be giving him/her unlimited access on your property.
According to experts, there are at least 3 main reasons for running a background check on your potential tenant. In any case, reliability should be this person’s main feature.
- Proper ”screening” is useful for safety reasons
Nobody wants to live next to a person with criminal record, a sexual predator or aggressive neighbours. A background check will tell you if your tenant is in any of these situations;
- Checking your candidates is a good way to avoid theft risks. In case your tenants steal from your neighbours, you could be held responsible for that;
- A background check will automatically make unworthy tenants disappear. If a candidate denies your permission to run the background check, most probably that person has something to hide and should be ruled out from the beginning.
Next to the background check, landlords can run credit checks on tenants. This means that people who are willing to trust strangers with their property can get a credit report from the credit bureau. This is a safe and fast way to see if a candidate has any debts that would him or her from paying the rent.
As you can imagine, the credit search is not free. If you are a landlord will have to pay a fee for getting it, but once you have it, you can see your potential tenant’s negative financial records. This includes areas which interest you, like bankruptcy, eviction or foreclosure on a home.
You can have the background or credit check in four easy steps
- Find out more about federal laws and other types of applicable rules and regulations;
- Figure out which information you need and are paying for;
- Tell your candidates about the intention of running a background check on them;
- Ask your potential tenants about their personal information.