Still struggling with background check for years now

[J Richardson]

I'm on my second rental property, but I've always struggle with the background check. It seems that most of the bad applicants won't even fill out the one page background application and return it if they have a bad background, so far I've gotten lucky, but that is it I just feel lucky.

I've been using www.e-renter.com/ for awhile now and it costs 37 dollars in which the applicant is the one that pays. It won't give me a credit score or report, but comes back if it meets the minimum requirement. Since there's so many foreclosures I've been keeping my minimum score really low at around 500.

The service recently gave me an option to put in the applicant's bank account information, which I took from the check they wrote. Well for an example I put in 1500 dollars and the service came back and said the person can afford the rental. I know the person makes twice as much as my requirement, so I believe the system.

Then I found out that the 37 dollar check bounced. Ok, the person doesn't even have enough for the 37 dollar check, so that service from www.e-renter.com was pretty much useless.

I'm wondering if there's better sites out there or if they all pretty much do the samething? My second question is do people ask for the last month's bank statement? I found out through my bank that this applicant consistently bounced checks for insufficient funds, so I'm thinking if I required the last month's bank statement that would tell me a lot of things. I could verify that the amount of money the person claims to make can also be verified, it will tell me if the person has only 10 bucks left in the account as well. I'm just wondering would most applicants be alright with me asking for their last month's bank statement?

I'm just really trying to figure out how I can avoid this issue again. I would imagine me requiring a better credit score would avoid getting a person who is consistently bouncing checks, but the best tenant I've ever had was foreclosed on for losing his job a few years back, so I really don't think the credit score is a great way to determine if a person goes a good job with their finances. How much they make is only one determination, because this person makes 2 or 3 times the required salary (I use 3 times the rental).

[Chris Martin]

What ever process you decide, it would be beneficial to you to 1) define the tenant screening process 2) stick to the process 3) have a clear policy as to why you turn down applicants 4) have your policies and processes in writing. If you have a web site, you may want to have your policies publicly available. Screen every applicant the same way.

We use National Tenant Network but I believe they all mostly provide similar information. We look at tenant history, criminal history and employment... then contact employers and references. We don't look at bank statements. Screening requirements, I think, depend on your clientele.