Did you know that around 70 million Americans have a criminal record?
In most cases, this amounts to something minor, like a traffic violation or a mild altercation. But you never know if a person you meet is a convicted felon or sex offender. And that's highly problematic if that person happens to be your tenant.
Tenant screening is the best way to avoid the unpleasant surprise of finding out that new tenants aren't who they said they were. Having rental tenants who are felons, for example, could get you in a lot of trouble.
Keep reading as we discuss the 5 benefits of having tenant screening options.
1. Tenant Screening Tells You Their Criminal Record
You need to be able to make an informed decision about your prospective tenants. However, a criminal record isn't always a bad thing.
For example, middle-aged rental tenants may have a misdemeanor from their teenage years. Someone who committed a crime so many years ago likely poses no threat. But if you were to go off of word of mouth, you might make a less judicious decision.
2. It May Help to Avoid Discrimination Charges
If tenants feel that you discriminated against them by denying them housing, it could lead to legal penalties or worse. Even if this turns out to be a frivolous lawsuit, it's a waste of your time and money.
Tenant screening software gives you evidence to justify your decision. It could potentially protect you from legal action.
3. It Gives You a Credit Check
You want to be sure that your tenant can keep up with rent month after month. Aside from pay stubs, the only way to get a good view of their financial history is through their credit score.
This way, you can avoid tenants with a history of bad credit--and therefore, a history of not making payments on time.
4. It Tells You if They've Been Evicted
Tenant screening options can often tell you a tenant's history with other landlords. Eviction is a serious matter and can be incredibly messy.
Knowing the details of the eviction will help you to avoid renting to someone who fails to abide by the lease.
5. It Limits Tenant Turnover
You lose money every time you have to replace a tenant. Any amount of time that your real estate property is sitting vacant is lost ROI.
Finding long-term, high-quality tenants is not an established science. However, you can improve your chances by using all the tools at your disposal. Tenant screening is one of the best ways to do this.
Find Property Management in Your Area
Tenant screening should be an essential step in the process of vetting prospective new tenants. It not only tells you someone's criminal history, but their credit score and eviction history as well. You can make more informed decisions if you have the whole picture of a tenant's past.
Investor's Realty is the leader in Denver property management. Check out our property management services before you begin the process of renting.