Think of all society's modern security tools, from metal detectors to fingerprint recognition.
They are designed to keep the world safe, but landlords are responsible for keeping their investments safe. That means finding responsible tenants.
Read on to learn about tools landlords in El Paso can use during a tenant background check.
Credit Checks
A credit check lets you know about a tenant's financial history. This tells you whether or not they'll be able to make consistent rent payments.
Most landlords require a score of at least 670, which is in the good range. Get a full credit report with other information such as:
- Tenant's name and address
- Fraud alerts
- Summary of active accounts and credit lines
- Debts
- Recent credit inquiries
Income and Employment History
Set a rent-to-income ratio for your property. The rule of thumb is to look for tenants who make at least three times the price of rent per month.
Employment history is another tool. Look for recent records of employment such as paystubs.
Criminal Background Checks
One of the most important tenant verification tips is to never skip a criminal background check. It puts you and your property in jeopardy.
It's also important to do it the right way. It's considered discrimination to deny all applicants who have a criminal record.
Judge each tenant on a case-by-case basis. How long ago was their crime, and could their history make them dangerous?
Rental and Eviction History
They say history repeats itself, and that's why a rental background check is so important. Tenants who misbehaved at past properties are more likely to do so at yours.
Look for records of:
- Property damage
- Breaking leases
- Failure to pay rent
- Evictions
References
A tenant background check should also involve speaking to references on the rental application. These should be non-biased third parties who can vouch for the tenant's character.
You can also reach out to others listed on the application. Call their past employers and landlords.
Interviews
Sit down with the prospective tenant for an interview before accepting or denying them. It's a more personal landlord-tenant check and an important tool.
Verify all the information on their application. Discuss any inaccuracies that you noticed to give them a chance to clear them up.
Come ready with questions, but check that they're all legal and not discriminatory. Give them a chance to ask any questions about the property as well.
Professional Background Check Services
Using all of these tools is a time-consuming process. Doing checks and calling references for every potential applicant takes longer than you'd think if you do it alone.
Outsourcing the tenant screening process frees up your time for other priorities. It also reduces errors and gives you access to more tools.
Who Can Do My Tenant Background Check For Me?
Tools to complete a thorough tenant background check include criminal, credit, employment, income, and rental histories along with references and interviews. One of the best is professional services you can hire to do it for you.
Rental Network Property Management Inc. has been El Paso's Premiere Property Management Company for 30 years.
We've earned that title through excellent, individualized service from an experienced team. We take on the daily grind of property management, so you don't have to. Contact us to start enjoying hands-off investments today.