Renters Background Check

Renters Background Check

“Renters Background Check” written by Mike Marko

Are you looking for qualified renters?

Do you know how to check their background?

Getting the best renters is obviously in the best interest of property managers… and running a renters background check is part of that process.

That’s why I want to give you some tips on how to conduct a renters background check.

How to do a Background Check?

Looking for qualified renters is a challenging thing to do there are a lot of requirements to consider for that. As we develop the subject, you will find the best ways and what you will need to conduct renters background checks.

Information from the renters

The first step is to require your potential renters to complete a rental application. Having your potential renters information is necessary to have for you to start with your background check. The information that the applicant will put in the application form will be the basis and will be very useful for you to qualify them to be a renter.

Having a fully completed application before you proceed to the next step. A good rental application will include the following:

* Full name, social security number, date of birth, contact information, and driver’s license number and state of issue

* Previous address, date of residence, and contact information from the landlord.

* Employment status, current income, the name of the company and contact information.

* Banking and credit references for a credit check.

* Personal references.

* Signature.  This is the most important part of the application form.

Credit Report Authorization Form

As part of the rental process, it is very important to perform a credit check for your potential renter. When you receive the rental application, it is best to get your applicant to sign an authorization for a complete credit background check authorizing you to obtain the applicant’s credit report.

Section 604 of (FCRA) Fair Credit Reporting Act. This requires the landlords to perform a credit check. This also requires signed authorizations for the property manager to complete this process.

Having the correct signed authorization from your renters in a requirement and one that the potential renter must agree. If a potential renter ever denies their authorization to look into their credit history should automatically make them not qualified to rent to, and you can stop the process at that point.

Interview the Renter Face to Face

By doing this process, you will be communicating with your renter whether you like it or not. So to start with your background check it’s best to interview two potential renters. By doing so, you can develop a feel or a series of notes giving you your personal feel on who you could be renting to. Know their personality and how comfortable you are in talking with them in person. Thus, if they become a qualified renter, it will be easier to pull the trigger and rent to them.

You may ask the following questions:

*What is the reason  you are moving?

*Do you have any pet?

*Do you smoke? Indoors or outside?

*Who else will be living with you?

*Do you have any relatives or friends who might frequently spend the night?

*Will you be able to pay the first months pay and deposit before moving?

Those are some of the questions you may ask. The depth of questions and the personal scope they cover will allow you to know your potential renters and make it easier to determine if you would like to rent to them.

You might also want to check their car (casually)… because how they treat their car is how they will typically treat the home.

Credit Reports Review

By following the process for getting credit check authorization from the potential renter, you can run an in-depth credit check. A credit check will allow you to identify the stability and the ability of the renter on a financial history background check.

When you do a credit check, you will be able to see the financial history, the foreclosures, bankruptcies, and any good or bad comments from creditors that the potential renter’s credit history reveals. Additionally, when you run a credit check you will receive the potential renter’s FICO score and understand how that score was assigned. This evaluation process is key to finding the most qualified renters to rent to.

*You can get the credit report online from the following

TransUnion, Experian and Equifax

*If you found a negative report after doing the credit check, then you can inform him the reason for rejection and the name of the agency’s name and address.

Contact the Renter’s Employer

Part of a background check is to determine if the renter is currently employed so you can determine if they can pay the monthly rent. You may contact the renter’s employer to check the renter’s employment status. This will also help you verify if the renter provided an accurate information regarding their financial ability and stability to rent from you during the application process.

You may ask the following questions:

*Is he employed, and for how long is he employed?

*Does he have a fixed salary?

*Is this a full-time or part-time job?

*How much is he earning? (this is if possible)

Contact the Renter’s Previous Landlord

Another thing you need to do for background check is to talk to the previous landlord. This will help you get more idea on how the renter fared with his previous rental history.

You may ask the following:

*When and how long did he rent a property from you?

*Did he pay the rent on time?

*Did he break the agreement in any way?

*Why did the lease end?

You may ask those questions and more if you wish to know more information.

Knowing the potential renter’s previous rental history will help determine if the renter paid their rent on time, possibly left the property damaged, and other needed information to know if they qualify to rent from your property management service.

Contact the Renter’s Personal References

Another part necessary for background check is to contact the people they put in the personal reference section of their rental application. By conducting quick and informal interviews with these references, you will obtain more information about how the renter’s character, manner, and behavior.. The people who know them best will provide you with vital information so you can know the renter’s personality more than anyone else.

You may ask the following questions:

*How long have you known him?

*Would you recommend him to me for rental?

You Have Found Your Qualified Renter!!

Going through the process of evaluating the rental application and doing a background check will allow you to identify the most qualified renters for your properties.

During the process, it may seem like you are asking a lot about your potential renter (like we outlined above), but this is for you and your property’s security.. Doing a complete and in-depth background check is key to finding the most qualified renter.

If you find this helpful, please comment down below and share my article. Thanks!

 

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Author: Mike Marko
Click here to contact Mike
www.IMConsultantServices.com

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Article: Renters Backround Check

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