5 Reasons Landlords Need a Tenant Screening Service
Using a tenant screening service is one of the most important first steps landlords must take when looking for applicants. It’s a cost-effective way to protect their property and their wallet.
Rental applicants aren’t always honest. According to the NHMS Pulse Survey, at least 93.3% of landlords experienced fraud on rental applications. Around 70% saw this increase in the last year. It has a real monetary impact of over $42 million in debt.
What Background Check Do Most Landlords Use?
The most common tenant background checks include:
- Credit
- Criminal
- Eviction history
These stand out because they’re directly related to a tenant’s suitability as a renter. They help landlords see their risk and responsibility before renting to them.
What Does a Tenant Screening Report Consist Of?
When you use a tenant screening service, they’ll provide a tenant screening report.
It provides a broad view of each applicant’s suitability. The report may include their:
- Credit score
- Eviction history
- Criminal record
- Employment verification
This is one of the most important landlord screening tools out there. It provides all the necessary information to vet applicants.
You can weigh all of the information against each other instead of looking only at one. According to the Impact Fund, over 77 million Americans have a criminal record. That doesn’t automatically make them dangerous or irresponsible. Applicants with low credit scores may be just starting to build credit or paying off debt. It’s important to consider everything when making a decision.
Five Reasons Landlords Need a Tenant Screening Service
There are several tenant verification benefits that make finding the right service to do it an important step. It ensures your properties remain filled and rental income keeps flowing. It’s also a protective measure against property damage and legal issues.
1. They Reduce the Risk of Non-Payments
Tenant screening helps identify renters more likely to pay on time. This helps you maintain a steady flow of rental income.
You can also use that money to cover costs such as:
- Insurance
- Taxes
- Maintenance
- Upgrades
2. They Protect Properties and Other Tenants
Paying rent on time is only part of what makes a tenant responsible. They also have to have a history of taking care of properties they’ve rented before.
Responsible tenants are more likely to keep up with day-to-day maintenance. They’ll also report and address minor issues before they become major catastrophes.
This has major benefits for you as a landlord. You won’t have to pay as much for property upkeep and repairs. One of the major reasons for this is that everything in it will last longer with proper care.
A well-maintained property is more desirable. It’ll show up more often in rental searches. This high demand could allow you to charge higher rent.
Screening not only protects the property itself but also everyone and everything around it. It protects existing tenants and the surrounding neighborhood from potentially dangerous tenants.
3. They Lower Legal Liability
A well-documented, consistent screening process is a landlord protection service.
You’ll be less likely to deal with renters with serious criminal backgrounds or lease violations. You’ll be better able to defend yourself if issues arise. It also helps keep you compliant with Fair Housing regulations that prevent discrimination during the application process.
4. They Lower Turnover and Vacancies
Well-screened tenants tend to stay in the same apartment longer. This means you don’t have to spend as much money on processes such as:
- Marketing
- Turnover
- Cleaning
- Prepare apartments
Screening also reduces evictions. It’s best to avoid these expensive, time-consuming legal headaches whenever possible.
You’ll also have a better relationship with responsible, well-screened tenants. You’ll be able to trust each other to communicate about issues well. That leads to a better experience on both ends. It also improves your reputation as a landlord when tenants spread positive word of mouth about you.
5. They Give You More Time
The rental application process can be one of the most time-consuming parts of property management. Beginner landlords may even be tempted to skip screening entirely. That’s a dangerous decision that could lead to a lack of income or ruined properties.
Fortunately, tenant screening is one of many tasks you can delegate to SLO property management companies. They can handle it from start to finish, automating checks and generating standardized reports.
This helps you decide whom to rent to and gets rent money flowing in faster. You’ll have more time to put into other areas of your business.
Frequently Asked Questions
Do Landlords Actually Contact Previous Landlords?
Yes, many landlords do. It’s an important part of the screening process.
Landlords can use reports from previous landlords to gauge your behavior. They’ll use them to determine how you’ll act on their property. It can be a major factor, whether they receive a glowing report or a negative one.
This step typically follows submitting a rental application.
What Are Red Flags When Renting a House?
There are several red flags to consider when screening. Common ones include:
- Past evictions
- Unstable income
- Incomplete information or refusal to provide information
- Criminal records
There are also red flags you may not expect.
Extremely positive references could be fake or provided by a family member or friend. Landlords who receive them with an application should look for other references elsewhere.
Being eager to move into a property may seem like a positive sign, but there is such a thing as being too eager. Pay attention to see if the applicant seems desperate. It could be due to financial instability or a habit of quickly moving from place to place.
Get Tenant Screening Help With Property Management Today
A tenant screening service protects you from irresponsible or dangerous tenants. You’ll find them more likely to pay rent on time and keep their property clean. It also reduces your legal liability and gives you back time you can use elsewhere.
Sloright County Property Management offers local experience you can trust. Our team has the experience to help you through the entire property management process.
You can also use our 24/7 online portal. It lets you see your property’s performance at a glance. Use it to easily view inspection notes, earnings reports, and more.
Contact us today to make property management easier than ever.
