| Tenant credit and background checks can make | | | | application information then odds are extremely |
| or break a rental business. Nearly everyone has | | | | high that one after another of these deadbeats |
| heard the horror stories - a renter moves in and | | | | will show up at your business office with a rental |
| takes your apartment and after a couple of | | | | application in hand. Your investment property |
| months simply stops paying. Anyone who has | | | | dreams quickly become dismal deadbeat |
| ever rented out a room or a piece of property | | | | nightmares. What can you do? How do you |
| has at one time or another had to worry about | | | | conduct a proper tenant credit and background |
| deadbeat tenants. | | | | check? |
| Seems like everyone over the last half decade or | | | | Arm yourself with the power of knowledge: |
| so has been trying to cash in on the "easy | | | | Verify, Verify, Verify |
| money" to be had by either buying and flipping | | | | So you received an application from a prospective |
| properties, or buying rental properties to manage. | | | | tenant. Great! Now what? Well did they fill it out |
| In both cases at some time or another anyone | | | | completely? Did they provide you with a social |
| who has had to hold onto a rental property for | | | | security number? How about an employer contact |
| any length of time knows the nightly worry about | | | | and work history? If so you have a lot of |
| whether the tenant's money is going to come in | | | | information you can work with. Step two in your |
| this month. Questions such as "Did I just hear that | | | | application review needs to be verification? Did |
| he lost his job?" or "Did her druggie boyfriend | | | | they lie about where they work? Did they just |
| move in again? He always steals her money! Will | | | | lose their job? What about prior landlords? Did |
| she be able to pay us this month?" constantly run | | | | they leave under good terms? What about the |
| through the mind of a landlord or investment | | | | IRS? Does the IRS require backup withholding |
| property owner who has not done a proper | | | | from these individuals? Does the applicant have |
| tenant credit and background check. | | | | any liens or judgments against them? What about |
| Ever notice how some landlords just quietly go | | | | a criminal record? All these questions are fair |
| about their business without so much as a care in | | | | game in a tenant credit and background check. |
| the world other than the routine upkeep of their | | | | What about Personal References? |
| properties? What do they know about their | | | | Personal references are nice however almost |
| tenants that you don't? How come they seem to | | | | anyone can come up with at least three people |
| be able to sleep easy at night knowing the bills | | | | willing to vouch for them. I personally save the |
| are going to be paid? Why is it that those | | | | personal references on file in case I need to go to |
| property owners always seem to have the most | | | | the police or an attorney to track the tenant |
| stable tenants? What do they do for their tenant | | | | down. Sometimes emergencies arise where |
| credit and background check that you don't? | | | | personal contacts collected in the tenant credit |
| More often then not, the difference between | | | | and background check are of value. Otherwise |
| your worrisome rental business and their relaxed | | | | personal references are of almost no |
| one is preparedness and thoroughness. | | | | informational value in determining the suitability of |
| The Application is the Beginning of Your Tenant | | | | a prospective tenant. |
| Credit and Background Check Investigation, Not | | | | Be a Little Invasive... They'll Respect You for It in |
| the End | | | | the Long Run |
| Almost all landlords these days collect at least | | | | These are the sorts of things you need to know |
| some minimal information about prospective | | | | before you call in your prospective tenant in for |
| tenants. What many inexperienced landlords do | | | | an interview. Armed with the results of your |
| with that information is use it to call in prospective | | | | investigation in hand you now can conduct a |
| tenants for an interview... where they simply | | | | proper interview with your new tenant. Maybe |
| regurgitate the same information on the | | | | there is an explanation for the lien against them. |
| application again. What has that landlord really | | | | Maybe they lost their job between the time they |
| learned about their prospective tenant? Absolutely | | | | applied and when you verified. If so, get the new |
| nothing. | | | | employer contact information and then what... |
| The inexperienced landlord will claim to have done | | | | verify, right? |
| a proper tenant credit and background check of | | | | Ask the hard questions. Get answers. Your |
| the prospective tenant however in reality they | | | | prospective tenant (if they're worth having) will |
| have verified none of the information provided by | | | | respect you for doing a thorough investigation - |
| the applicant. What, you say? People lie on rental | | | | and they too can sleep easier knowing that the |
| applications? Uhh yeah... tenants lie on rental | | | | person in the next apartment has gone through |
| applications. | | | | the same vetting process. It's an invasion of |
| Information gathered from an applicant which has | | | | privacy, true, but all of us are willing to give up a |
| not been verified by a proper tenant credit and | | | | little privacy if it in turn benefits ourselves by living |
| background check is worthless. Further... if you are | | | | in a safer apartment complex. A tenant credit and |
| known amongst a group of deadbeat tenants as | | | | background check done respectfully and |
| being lackadaisical in conducting proper tenant | | | | professional benefits everyone. |
| credit and background checks and verifying | | | | |