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Tenants from hell are a landlord's worst nightmare. You must have heard stories from miserable landlords who go to the extent of paying a bad tenant to move out of their property. You don't want to experience this.
The good news is you have control over who becomes your tenant. By conducting a thorough tenant background check, you can catch renters who are likely to be problematic and reject their application.
However, if you're anything like most landlords -- especially first-time landlords -- you don't quite know how to conduct comprehensive tenant screening. This article is here with handy tips on how to go about it.
Dive in!
1. Check Rental History
Not all tenancy applicants have a rental history, but it doesn't hurt to check. If someone has been renting previously, you want to know how many times they've moved and for what reason.
A person who has moved a couple of times in the past year might not be your ideal tenant unless they have good reasons for moving. Generally, it's in your best interest to have a long-term tenant as it will reduce the number of times you have to start looking for a new tenant.
It's essential to verify the applicant's explanation of their rental history. Get in touch with previous landlords to ensure the story checks out.
2. Criminal Background
Of course, you don't want a person engaging in criminal activities renting your property. You can't tell who is a criminal and who isn't by mere looks. However, a person's criminal background can give you some indications.
Now, whether you can deny someone housing because of their criminal history depends on state and local laws. California law doesn't prohibit landlords from rejecting a renter based on their criminal record, but it's unlawful to use this criterion selectively.
That's to mean, if you're conducting criminal background checks, it must be on all renters regardless of their race, gender, sex, or nationality.
3. Credit and Employment History
A person with a clean rental and criminal background history is not a good tenant if they can't make their rent on time. This is why you must check a renter's credit and employment history.
Employment history gives you an indication of a renter's current ability to afford the rent. By looking at someone's paychecks, for instance, you can tell whether they have the means to pay rent.
Credit history gives you a clearer picture of a person's financial wellness and discipline. A poor credit score could mean the person is undergoing some financial difficulties and may become a problematic tenant in the future.
Tenant Background Check: Make No Mistakes
Conducting a tenant background check isn't a matter of choice, but you'd be setting yourself up for trouble if you ignore it. Finding good tenants is key to being a successful landlord.
We understand that you might not have the time or tools to do proper checks. At PMI Contra Costa, we offer tenant background check services for Diablo, CA landlords. We are a full-service property management company, so you can rely on us for other services as well.
Contact us to learn more.
