While technology prevailed in all sectors, there are useful advancements seen in the real estate sector as well. Web developers have introduced effective platforms for helping both tenants and landlords. Have you heard of the tenant screening service? What does the term indicate? It is a security check! Being a landlord, you have to do your research about tenant credit and background to avoid security and payment issues in the future. It is to ensure that the tenant is not a criminal and has enough resources or stable income source to pay the rent. For this purpose, tenant screening services were introduced. This blog provides an extensive overview of tenant screening services.
The proper way of screening tenants
A lease agreement has to be signed between the tenant and the landlord. Before the agreement is signed, the landlord or real estate agent assesses the credibility of the client for the particular lease agreement. Moreover, it is dual-step authentication of the information provided by the tenant.
Why are background checks required?
Background checks for tenants are essential as they indicate the credibility of the tenants in terms of regular payments, agreement follow-up, and maintenance of the rental property. Following are the components of a rental screening report.
- National Identity Certificate: It is a must to verify the identity of the applicant.
- Salary: The applicant should be able to pay monthly rent. Mostly, landlords expect tenants to pay 30% of the gross income as rent.
- Job record: The job history of a renter should be investigated by the owner. This guarantees that a tenant can regularly pay rent. Ask about their current company, job description, and connections as well.
- Financial statement: The landlord needs to obtain a credit report of the tenant. Based on the credit score, you may approve or reject the application.
- Security Check: It is mandatory to run an applicant’s background check for a criminal record.
- Rental History: The screening procedure determines how a potential tenant will behave in your home. As a result, it’s critical to investigate their rental history. Earlier displacements are one of the most significant things to check for. A renter who has been expelled before is more likely to be evicted again.
- Landlord References: Conversing with a tenant’s early lessor can disclose much helpful information like delayed payments, lease breaches, criticisms from other lessees, and claims of property damage.
If you want to rent your property, then do contact tenant screening service providers. It is a very critical step you should not skip.