Tenant screening is the backbone of successful property management. Making hasty decisions in this process can varied negative results, from lost income to lengthy legal battles. With a comprehensive tenant screening report, you'll be able to better outline leases, reduce risks, and confidently verify tenant backgrounds.
That's why we created this guide to help you make careful considerations in your tenant screening practices. Let's dive in!
Understanding Tenant Screening
Property managers use tenant screening services to gauge whether an applicant is a suitable tenant for your rental property. This process involves a systematic review of a prospective tenant's:
Credit Report
Background Check
Criminal Records
Eviction History
Each and every one of these checks is important to fostering a healthy and secure environment in your rental property, especially if you have multiple tenants living there.
Key Components of Tenant Screening
A structured tenant screening report is necessary to draw out relevant insights across all applicants. The process involves the following key components:
Credit Report
A traditional credit score of 670 or higher indicates that your tenant is more likely to be responsible for on-time rent payments. Those who score 580 or below show they may have a history of irresponsible spending.
Background Check
Gaining a complete picture of an applicant’s background can reveal a criminal history that can be pertinent to the tenant’s reliability and the security of your property. Violent or theft-related offenses are definite red flags in a screening report.
Employment and Income Verification
Ideally, tenants should earn an income of at least 3 times the rent. By contacting the applicant’s employer, you can confirm and verify their employment status.
Eviction History
Since evictions are expensive, assessing the eviction risk of an applicant can reduce financial and legal risk. Prior eviction reports can provide landlords with information they might not have considered yet.
Streamlining the Tenant Screening Process
As the rental market evolves, so do the methods to screen tenant backgrounds. Incorporating advanced and traditional approaches can bring broader data collection to predict tenant compatibility.
Online Tenant Screening for Landlords
Landlords can eliminate on-site inspections and manual processing by conducting online screening. This allows property owners to screen tenants easily and obtain instant access to tenant background check reports.
Ensuring Fair and Compliant Tenant Screening
To ensure legal compliance with the Fair Housing Act, partner with industry-leading credit and background check providers. They can give accurate and credible information so you can make informed decisions while avoiding discrimination.
Interpreting the Tenant Screening Report
Once the results are in your hands, you’ll need to carefully consider every check to make an informed decision. This part can be stressful, and if you have multiple properties or a larger property with multiple tenants, it will happen often. To alleviate that burden, you can always hire a property manager to guide you in tenant placement.
Best Practices for Tenant Screening Services
When screening your tenant applicants, keep accurate records and intensive documentation of the process. With a property management company, you’ll get the following results:
Accurate Credit Reports
Efficient and Quick Turnaround
Excellent Customer Report
Legal Compliance
A consistent application of uniform screening is critical to an efficient rental business. Always abide by the laws when choosing which applicant to accept or reject based on standardized criteria.
Conduct Effective Tenant Screening for Your Property
A secure rental property starts with effective tenant screening. If you want to succeed, consider hiring a professional property manager like us at Stewardship Management & Realty.
For over 20 years, we have operated and served property owners in Massillon, OH with exceptional tenant screening services while adhering to federal and state laws.
Explore our services and invest in keeping your property secure today!
Additional Resources
5 Ways to Improve Tenant Screening in Massillon, OH
Is a Tenant Criminal Background Check Necessary in Massillon, OH?
Security Deposits: Essential Guide for Massillon Renters and Landlords
