How to Do Background Checks on Potential Tenants

Whether it is a house or an apartment, you should run basic background checks on any individual seeking to rent your property. You should conduct your due diligence on any potential tenant before you accept any form of payment, including a deposit to hold the place.

Instructions

1. Meet the prospective tenant in person. Don't rent a house over the phone. Your gut instinct may set up warning flags that you should not ignore. Meeting the prospective tenant can also go a long way toward building a positive relationship.

2. Ask the prospective tenant for his basic information. Specifically you need his most recent address and social security number. Ask for his driver's license as well. From this you can obtain his date of birth. With this information you can run basic background checks.

3. Obtain a list of previous landlords. Call them. If there are any problems with the tenant, the previous landlord can fill you in on any grievances.

4. Before taking any deposit money, run a credit check. This service costs you a small fee, but it's well worth the cost if your potential renter has a bad credit history.

5. Check the potential tenant's ID for any criminal records. You can also check with the INS for deportation reports. These background checks do cost, but consider them as part of the cost of doing business. Additionally, they are tax deductible.

6. Be sure to charge last month's rent as part of the initial rent payment. If there are any problems along the way with the tenant, these fees can help offset the costs.