Monday, May 2, 2016

Background Checks Eliminate Risks for Landlords

Landlords deal with a lot of risks when it comes to renting out their property to a tenant. For example, renting to the wrong kind of tenant can not only cause some financial distress but physical damage to your property as well. Here are some red flags to avoid that will save you from the fate of having to deal with nightmare tenants.

No References

How would you know if the person who showed up at your doorstep was a good tenant before? References from previous landlords go a long way. If tenants do not provide you with good references, this may mean that they are on the brink of getting evicted or breaking their current lease. Background checks are very important as they can reveal prior evictions. Please be cautious when checking in with the tenant’s current landlord as this current landlord might just give a positive review because they want to get rid of this tenant.

No Verifiable Source of Income

Just because a potential tenant is showing you he/she can pay upfront, doesn’t mean you should take him/her in right away. One of the biggest mistakes a landlord could possibly make is not confirming if a potential tenant has a verifiable source of income. Your would-be tenant might be earning their money through illegal means. A tenant background check allows you to find out if your tenant has prior misdemeanors or has committed violent crimes.

No Details and only Partially Completed Tenant Applications

If a prospective tenant is reluctant to share details with you during the application process, chances are they are hiding something they don’t want landlords to know. You would be wise to be meticulous and avoid these tenants at all cost.

No comments:

Post a Comment