All Forum Posts by: Carlos Hennings

Yes, credit and background checks are still advised—a thorough screening can mean the difference between a great tenant and months of lost rent or damage. Many screening services only pull basic credit reports, but that doesn’t give you the full picture.

For the best results, choose a screening service that includes identity verification, eviction history, criminal records, and income verification reports, rather than relying solely on a credit score and collecting pay stubs and bank statements, as fraudulent documents are becoming more common.

Also, keep in mind that judgments and liens no longer appear on credit reports, so choosing a service that pulls these separately can help spot hidden risks.

Another thing that’s easy to overlook but super important is guest screening. Using a third-party screening service that verifies identity, past rental behavior, and financial responsibility can help minimize risks and protect your investment. It's an extra step, but one that can save you major stress down the road. Best of luck with your STR!

Welcome to the game! When setting up your short-term rental, thorough tenant screening is just as important as getting the right licenses and local vendors in place. While STRs often have quicker turnover, screening can help reduce issues with property damage, chargebacks, or problematic guests.

If you're concerned about high-risk guests, you may want to use a third-party screening service that pulls comprehensive reports, including identity verification and past rental behavior. This extra step can help protect your property and minimize risks as you start your STR journey. Best of luck in Laguna Beach!

As a former collection agency owner, I can share that recovering past-due rent is challenging, primarily due to difficulties in locating or contacting the former tenant. To improve your chances, ensure you collect as much information as possible upfront, such as emergency contacts, employer details, and references. This will aid in the skip tracing process.

When selecting a collection agency, verify that they report to all three credit bureaus and ask about their reporting timeline—some agencies wait 30-90 days as leverage to encourage payment plans. Additionally, look for an agency that not only sends letters but also makes calls, and consider those that work on a contingency basis, as this aligns their success with your recovery efforts.

Be aware that collection fees in this industry can be high, often around 50%, due to the extensive skip tracing and effort required. To protect yourself, consider adding a lease clause stating that tenants are responsible for legal and collection fees. While this does not guarantee full recovery, it can help offset costs. Working closely with your agency and following their guidance can improve the likelihood of collecting what is owed. Hope this helps.