Background checks for new tenants

[Chris Roche]

Hey all,

What measures do you take before renting to tenants? How do you do background checks? How do you do credit checks? Any advice would be appreciated.

Also, how do you collect rent? Do you have a check mailed to you? Is there any way a tenant can pay online?

[Thomas S.]

It is a absolute must that you perform a thorough credit, employment, income, previous landlord, financial and employment background check. You should also get a photo copy of their drivers licence to confirm their present address. You must screen every adult intending to reside in the property and all must pass screening independently. You must have them fill out a application for including providing their SS# and all other information needed. The form will clearly state that in signing they are authorising a full background and credit search.

Credit wise you need to set a minimum credit score and if they reach that score you then look more closely into the contents of the report. They should have 2 years employment with the same employer, call HR to confirm they are a employee do not use the contact # the applicant supplied. Call their previous, not present, landlord and ask test questions, (confirm address of the rental, rent amount etc.) to make sure it is not simply a friend of the applicant you are calling. Ask about their payment history and whether the landlord would rent to them again. Etc.

If you are unqualified or not confident in you ability to do detective work you should consider using a PM to screen. We screen to find reasons to reject applicants not reasons to accept them.

Remember all applicants have something to hide. Your job is to find it.