For instance, shameless plug ahead, beware! SparkRental provides nationwide eviction reports, including data from all 50 states. And most of this information is not found on a tenant credit report. OK, plug over! Be a Sneaky Pete. If you see your applicant in every picture with two beers in his or her hand and every other post about the new tavern they will be visiting, this may be a red flag. I am not saying a drink now and again is a problem. However, you will see tell-tale signs of the partier, the slob, the complainer and more. All this by just by taking a gander online.
Increasingly, baby-boomers and empty nesters are choosing to rent instead of buy , as they downsize and leave their child-rearing suburban homes. Owning rental investment property in an area where retirement population is popular or on the rise such as Florida or Colorado can be lucrative for landlords.
According to USA Today, baby boomers have the highest credit ratings compared to the other age groups. The other end of the spectrum is Generation Z who now make up a large part of the renter demographic. Looking to get out on their own, or soon thereof, this young group may have little to no credit. In fact, Gen Z has the lowest scores on their tenant screening reports; with an average of This poses a challenge to the real estate investor.
Later in this article, we will discuss how to use a co-signor to protect yourself fully when renting to the younger generation.
And your responsibilities.
Then there is the middle. Those in between the young and the old. One could say, these generations should be buying homes. And if they are not, is it because of credit issues due to mismanagement of money?
You can see how understanding these bits of information along with running comprehensive tenant background checks can assist in making the best decisions in who to sign a lease agreement with. Earlier I talked about the Generation Z becoming one of the largest growing renter sector.
However, often, these folks come with little to no credit. Or, perhaps the income is a bit short.http://fgc-engineering.com/3073.php
Tenant Screening, Tenant Background Check, Tenant Verification
What to do? This is where a co-signor is very handy. Remember, however to run a full tenant background check on the co-signor as well. Do not just assume that they are squeaky clean. What if an application reveals some slight credit issues on the tenant credit report, but their income is more than sufficient.
Consider, asking for an additional month rent up front. Make sure that it is permitted under your state landlord tenant statutes. There are some items that may show up on tenant screening reports that prove to be huge red flags! Some items may be explained. Medical bills, for instance. Take into consideration all of the information.
The employment, the landlord references, what you seek and find. Here is the cold fact. If your rental is located in a location where people are waiting in line to rent, you can be very picky in who you choose. Consider yourself lucky. However, there are some properties located in less than favorable areas.
For whatever reason, perspective applicants are not banging the door down with their free rental applications filled out and ready. Or the ones that have their rental application in hand and ready to rent, are, well, not rent-worthy.
Conducting thorough tenant background screening no longer incurs a fee for landlords. That means a completely free tenant screening report for the landlord-owner-real estate investor-property manager. And frankly, free provides no excuse to forego the essential tenant background checks.
Complicated no more! Often it is as simple as your applicants receiving an email. And not only do you receive, the report to your account, but also have full access to download a pdf of the rental application. TIP: Always keep the rental application in a safe place.
I personally still save hard copies in a locked cabinet. Because there is insurmountable amount of information that can be used for an unforeseen emergency or eviction. All Rights Reserved. Money Crashers. About Money Crashers. Recent Stories. Read more. Advertiser Disclosure X Advertiser Disclosure: The credit card offers that appear on this site are from credit card companies from which MoneyCrashers.
Kristie Lorette. Views Shares Share This Article. Dig Deeper. Real Estate. Follow MoneyCrashers. Trending Articles. Become a Money Crasher! Join our community. Share this Article. Find out how to apply here. Kristie Lorette Copywriter and marketing consultant, Kristie Lorette is passionate about helping entrepreneurs and businesses create copy and marketing pieces that sizzle, motivate, and sell. LeaseRunner is a top rated background check service for landlords that run small rental businesses.
Have more questions about a tenant? You can also add on an eviction check, financial profile, or credit check. Best of all, you can initiate the entire process online — the system sends the email, and the applicant can authorize the screening immediately. This program enables your potential renter to manage the background check process; then, they share the report with you.
Top Ten Best Tenant Background Screening Services
As a result, you can make a decision, all without handing social security numbers or worrying about data security. It enables you to check eviction, rental history, and more. We love that the reports are fast and easy to read, so you can make a decision quickly and get the best possible tenants. In comparison to the industry standard, full screening packages are affordable.
Plus, since the whole system is online, it saves you time and money. When you want to avoid hidden fees, TenantAlert is a great way to screen potential renters. We like that you can pay on your own or leave it up to the tenant to process payment. Even better? Once payment clears and the applicant authorizes the check, you get access to the report in 30 seconds. If you rent more than one unit, you know that it takes time to review background checks.
The system can even recommend the best applicants to you based on your preferences. Once you find the right person, Buildium can even notify them for you to save even more time.