If you've managed rental properties for any length of time, you've probably had a bad tenant. Bad tenants can create problems, yet you can face challenges trying to get rid of them.
One of the best methods for handling bad tenants is to avoid them through proper screenings. An effective tenant background check can help you choose better tenants, allowing you to avoid the headaches of bad ones.
An effective screening requires five steps. Continue reading to learn about these five steps if you're a North Alabama landlord.
Step 1: Obtain Written Consent
During the rental application process, ask the applicant to sign a written consent before performing a background check. You can print forms online or create your own, but you must have them sign them before you begin.
This form gives you permission to research the person's background. The form should state the types of background checks you will perform, such as criminal research or credit checks.
If you need help, talk to a property manager. They can perform your screenings and handle obtaining a person's written consent.
Step 2: Gather Comprehensive Information From the Applicant
In addition to requiring a consent form, you must gather the necessary information from the applicant. This information includes:
- Legal Name and previous aliases
- Birth date
- Address
- Social security number
When you research a person's background, you'll need this information to find the right person.
Step 3: Conduct a Criminal Background Check
After gathering the information, begin by conducting a criminal background check. This particular check reveals a person's criminal history and is necessary during the background check process.
For example, do they have felonies or misdemeanors on their record? If so, what were they for, and when did they occur? The primary thing you're looking for is the risks involved with renting to this person.
Step 4: Check Their Credit and Rental History
The next thing to check is the person's credit history. Credit tells you how a person manages their money. People with good credit tend to make good financial decisions.
Additionally, investigate the person's rental history, including any prior evictions. Evicting tenants is time-consuming and costly, so choose tenants that appear to be at a low risk of being evicted.
Step 5: Verify Their Income and Employment
The final step is verifying the person's income and employment. When they rent an apartment, they must be financially capable of paying the rent.
When examining their job and income, look at:
- The type of work
- How long they worked there
- Their income
Look for applicants with stable jobs and enough income to cover the rent.
Follow These Steps for a Tenant Background Check
A tenant background check is essential for every tenant you choose for your rentals. Each step helps you verify a specific attribute about a person, providing a comprehensive screening for every applicant.
Stutts Properties, Inc. serves the North Alabama area. We're local experts and aim to help in every way we can. Our goal is to help landlords succeed by assisting with all aspects of rental property management.
Would you like to learn more? Reach out today for a free consultation.
