Ways to Improve Tenant Screening

Effectively screening your potential tenant is one of the best ways to minimize the risk involved with leasing your property. Gone are the days when a hand shake is sufficient to complete a business transaction and assure performance by the parties involved. Individuals engaging in business transactions must perform thorough due diligence to protect their income and their property. Tenant screening includes tenant credit checks, eviction record searches, identity verification and criminal background checks.

Credit Checks

Order a credit report on your tenant from one or all of the major credit reporting agencies. Look for evidence of poor payment history, bankruptcy, foreclosure, judgments and tax liens, all of which are indicators of a potential problem tenant. At the least the report initiates a conversation with the potential tenant about any negative items on the credit report so that the landlord can make a more informed decision on leasing to the tenant. You will need the prospective tenant's permission to access the credit histories.

Eviction Record Searches

Run a statewide and nationwide eviction record search on the potential tenant. Most potential tenants will make a good first impression on a landlord; however, it is important to consider all of the tenant's prior performance on his tenant commitments. The eviction record search should include the name of the evictor, the date of the eviction and the monetary judgments, if any. Search your district courthouse for eviction records as most evictions involve a formal legal proceeding.

Identity Verification

Verify the name, age, address, Social Security number and identification of the potential tenant. Identity theft is a major concern as a result of increased Internet activity, compromised personal information and compromised personal documents. Make sure that all dots are connected and that the person you are dealing with is who they say they are.

Criminal Background Checks

Perform a comprehensive criminal background checks to reveal felony, misdemeanor, sex offender, inmate, probation, terrorist activity and other potential county, state and federal charges against a tenant. Performing this check not only protects you and your assets against litigation and fraud, but also protects the neighbors and other community members of your potential tenant.

References

• Tenant Screening Credit: Homepage
• Tenant Verification Services: Eviction Record Search

Resources

• Criminal Watchdog: Homepage
• Experian: Homepage
• TransUnion: Homepage
• Equifax: Homepage