What kind of background check should you run as a property manager?
Any owner of a property management company should make it a practice to perform a very thorough background screening on all prospective tenants before a lease is ever signed. While the economy often pushes for forced growth in the need to lease rental properties out, by the same token, people looking for a lease may resort to extreme means to obtain a lease that they wouldn’t otherwise be able to qualify for. Therefore, as a property manager, you need to be extra vigilant in determining who will be the most suitable fit for your rental property.
As a property manager, you will need to scout applicants for any tenants who may pose a problem by complaining to the court system about unsanitary housing conditions. These people will pay a deposit, but the moment they enter your property, they will stop paying for rent and in some cases, may even be able to live in your property without paying rent for months on end as the court system comes to a decision.
Part of the background check you should run on applicants involves checking the application itself for any indications of false information, such as false previous addresses. Some potential tenants may even go so far as to create a completely false identity. Additionally, you will need to run a check for the tenant’s residential living history, a search for any criminal records, and a search for any recent files for bankruptcy. Lastly, you will need to perform a background check for the potential applicant’s credit history.
We recommend the following services:
- Social Security Trace
- County Criminal Search – All Counties, 7 Years Resided
- Multi-Jurisdiction Search
- Government Watch List
- Sex Offender Search
- Bankruptcy Search
- Eviction Search
- Credit Report
By actively screening for all applicants, you may be able to mitigate the risk of signing over a lease to someone who will skip rent payments or pose a property-damage threat to your rental properties.
Need a thorough tenant check? Speak to an expert to learn more.