It might surprise you to learn that houses in the United States now cost over $350,000 on average. As time goes on, analysts predict this number will rise even higher. For this reason, many people are looking to purchase property that they can rent out to others.
Investment properties can be a great way to generate extra income, but you’ll need to ensure that you find the right tenants for your space. Although tenant screening might seem difficult to manage at first, working with quality property managers can allow you to take advantage of tenant screening services.
Let’s take a look at what you can expect from them.
So, What Is a Tenant Screening Report?
In simplest terms, it’s a background check on potential tenants. These reports will help you identify any red flags that might be associated with an individual, such as a history of evictions or late payments.
Screening reports can also provide valuable insight into an applicant’s rental history, employment status, and credit score.
One of the most important aspects of tenant screening is the rental history check. This part of the process will help you verify that an applicant has a history of making on-time rent payments and following the terms of their lease agreement.
You can also use this information to get a sense of an applicant’s overall stability as a tenant.
What Can I Expect From Tenant Screening Services?
It’s essential to know what you can take advantage of when working with a quality tenant screening company.
This will help ensure that you find quality services that can meet your needs. Let’s explore some of the most notable.
Comprehensive Background Checks
When you’re looking for a tenant, you’ll want to make sure that you conduct a thorough background check on your potential renter. This will help you to weed out any potential tenants who have a criminal history or who are not financially stable.
These services should be able to run a comprehensive background check for you so that you can be confident in your decision.
Another important aspect of tenant screening is eviction protection.
This means that if a tenant does not pay their rent or causes damage to your property, you will be protected from having to go through the eviction process yourself. A quality property management company will have a good understanding of the eviction process and will be able to help you if you find yourself in this situation.
Consolidated Data Reports
These reports are designed to give you a complete picture of an applicant’s rental history, employment status, and credit score. This information can be extremely helpful when you’re trying to decide whether or not to approve an application.
Additionally, it also allows you to reference past data so you can determine which applicants you’ve approved and denied (and why).
Compliance With the Fair Credit Reporting Act
When you’re running a background check on a potential tenant, you’ll need to make sure that you comply with the Fair Credit Reporting Act.
This law protects the rights of consumers and ensures that they are treated fairly when it comes to credit reports. They should be familiar with this law and will be able to help you comply with it.
Otherwise, you may face legal complications in the future.
Minimized Downtime and Vacancies
Screening tenants on your own can be an inefficient process that takes up a lot of your time.
You can avoid this by working with a quality property management company that offers tenant screening services. This will help to minimize the amount of time that your property is vacant, and it will ensure that you only have to deal with qualified applicants.
What Should I Look For in Tenant Screening Software?
First, you’ll want to make sure that the software is easy to use. You should be able to input the information that you need quickly and easily so that you can avoid wasting time.
You’ll also want to make sure that the software provides comprehensive reports.
The reports should include background checks, credit checks, and eviction history. This will ensure that you’re protected from any potential legal troubles.
Finally, the software should be affordable. Otherwise, it may not be worth the investment despite the results you get.
What Should I Look For in a Quality Tenant Screening Company?
As you might guess, their reputation is important to take into consideration. Luckily, a quick online search should reveal any potential concerns. Also, you’ll want to make sure that the company is accredited by the Better Business Bureau and that they offer a money-back satisfaction guarantee.
This will help minimize risk when choosing a company to work with. As you might guess, you should also be comfortable communicating with employers from the company you hire. After all, you’ll be working with them on a regular basis.
Finally, make sure to ask around for recommendations. A quality company should have no problem providing you with references from past clients. Other landlords are a great place to start.
Tenant Screening Doesn’t Have to Be Difficult
Tenant screening software can be a great way to protect your investment property. By conducting background checks and eviction history, you can minimize the risk of having to deal with problem tenants.
Keep the above guidelines in mind so that you can make the decision that’s best for you.
Want to learn more about what we have to offer? Feel free to get in touch with us at Rent Safe today and see how we can help.