A bad tenant doesn't just mean inconveniences like late rent or maintenance issues. Consider a case in the New York Post: a landlord watched in horror as her nightmare tenant turned a once quiet neighborhood into party central.
This sorry situation illustrates the importance of a robust tenant background check. By conducting comprehensive and holistic rental application checks, you can spot red flags and avoid renting to problematic applicants.
Are you interested in learning more about the tenant screening process? Read on to learn more about rental application checks.
What is a Tenant Background Check?
Landlord-tenant checks involve seeking information about:
- Financial situation
- Rental history
- Criminal background check
- Relationships with previous landlords
If a tenant caused problems for previous landlords or if they have a questionable past, these checks will most likely bring that information to light. Effective renters background investigation is interdisciplinary and holistic, so most landlords hire professional management screening services. While playing detective might sound fun, real estate is a serious investment, so mistakes can be expensive.
Learn About Past Finances
According to the FBI, anyone convicted by the US Justice Department has a traceable criminal history. With a robust criminal background check, you can uncover anyone who's spent time in prison or otherwise gotten on the wrong side of the law. While financially irresponsible tenants are more common, nightmare tenants are usually those with an extensive criminal record.
Thankfully, most people don't just spontaneously decide to destroy their rental accommodations. Generally, you'll see red flags going back years. By identifying these problematic individuals before they sign on the dotted line, you could avoid a stressful and exhausting tenant-landlord relationship.
Don't forget Character References
Remember, an absence of evidence during your tenant background check doesn't necessarily mean your applicant is trustworthy. Lack of criminal history and solid finances are great signs, but some actions won't come up during these checks. It's best to ask for character references from previous landlords if someone was disrespectful or negligent in reporting maintenance issues, you're sure to hear about it.
You should be suspicious of someone claiming to have no previous landlord references, but it depends on the applicant. A 20-year-old looking for their first apartment doesn't have a past landlord, so consider requesting a general character reference. These checks provide further context and validate your previous findings.
Don't Play Detective and Leave it to the Pros
It only takes one piece of evidence to prove a tenant is a bad choice, so you can never really 'prove' they're trustworthy. So how do you know when you have sufficient evidence? It's a difficult process that requires in-depth knowledge and experienced intuition.
Don't gamble on a nightmare tenant-landlord relationship. Work with a professional company like PMI Mecklenburg and get a robust and reliable tenant background check. We're part of a successful global franchise, so we have some of the best real estate experts on call. Contact us today and discover why so many landlords in North Carolina trust us to do their background checks.
