Tenant Screenings are the key to finding the right tenants for your long-term rental. Today, it is a crucial component for success of property management. Not only do property managers and owners want to find great tenants, but they also want them to stay for as long as possible. Ultimately, the property manager is looking for a tenant who will not only pay rent but also take care of the home. Effective tenant screening helps minimize risks and ensures a smooth rental experience. In this blog we are going to cover the basics of a thought tenant screening. We are also going to talk about some of the red flags to look for in tenant rental histories and more.
Attention is in the Details for Tenant Screening:
Collecting a detailed rental application is the first step in the application process. It is important to review employment history as well as the frequency of the tenant’s moves in the past. The length of time a tenant has spent at their current position indicates their stability. However, if a tenant is new to town or is a student, this measurement may be less significant. It is crucial to collect accurate identification and verify all personal and professional information.
Tenant Screening Credit Checks:
Reviewing a tenant’s credit report is another crucial aspect of screening. A tenant with a history of not paying bills is perceived as a higher risk compared to one with a clean record. The credit score offers insight into the applicant’s financial stability. Credit and background checks are typically completed online and are often paid for by the tenant.
The Importance of Tenant Background Checks:
Background checks provide a clear view of a tenant’s past activities. Most traffic citations and other non-criminal issues are not visible in a background check. A history of domestic violence is particularly concerning, as these incidents often occur in the home.Tenant Screening Credit Checks: Reviewing a tenant’s credit report is another crucial aspect of screening. A tenant with a history of not paying bills is perceived as a higher risk compared to one with a clean record. The credit score offers insight into the applicant’s financial stability. Credit and background checks are typically completed online and are often paid for by the tenant.
Tenant Rental History Matters:
Most property managers thoroughly check a tenant’s rental history. While calling the current landlord is useful, it can sometimes lead to misinformation. Landlords who are dissatisfied with a tenant may give a positive report to encourage the tenant’s departure. It is essential to contact several landlords from the applicant’s past to get a comprehensive picture of how the tenant is likely to behave in the future.
Fair Housing Laws and Tenant Screenings:
All property owners need to follow federal and state antidiscrimination laws when screening applicants for rental properties. In the federal fair housing laws, all property owners are prohibited from discriminating on the basis of:
- race or color
- religion
- national origin
- familial status or age (includes families with children under the age of eighteen and pregnant women)
- disability or handicap, and
- sex (includes gender identity and sexual orientation).
Georgia’s fair housing law mirrors the categories protected under the federal fair housing laws. (Ga. Code §§ 8-3-200 and following.) Get more information about Georgia’s fair housing laws at the Georgia Legal Aid’s website. It is important to know your rights as a property manager.
How Can Sid Was Here Help You with Tenant Screenings:
As with any process, there are red flags to watch for when reviewing an applicant. The most significant red flags often come from the credit report. Unresolved disputes reveal a lot about a tenant’s character, and multiple late payments suggest a pattern of behavior that is concerning. Medical bills are now given less weight in credit reporting, as the rising costs have led many into bankruptcy. Property managers typically have less concern about periods where medical bills were unpaid, as a single illness can significantly impact a family’s finances for several months. A thorough tenant screening process is key to maintaining a hassle-free rental experience. By paying attention to these aspects, property managers can secure reliable and responsible tenants. Questions about how Sid Was Here can help you with the tenant screening process? Contact Us today to get started.
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