If you are thinking about becoming a landlord, you probably have a list as long as your arm about the risks of becoming a landlord. At that top of that list will be having to evict someone. Eviction is a long drawn out process and it will cost you money in the long run.
If your tenant has not paid rent, then you will have to cover the costs so that you don't default on your mortgage. Then you will have to pay legal fees to get the necessary paperwork in place, so that you can evict your tenant. If you have a good insurance policy, then the cost might be covered on the policy, you just have to check your paperwork.
The best way to keep yourself covered is to put some money aside just in case your tenant runs into money problems and refuses to leave the property. This way, you won't run into money problems yourself.
If you are just starting out as a landlord and you have your first tenant in place, you need to ask yourself if you are fully prepared for everything that comes with being a landlord. The best way, bar none, to protect yourself against tenant problems, is to do some renters checks on the tenant before you give them a rental agreement.
A rental check is the same as a background check. You can check their employment history, criminal background and ask for any references that they may have. Make sure that one of their references is their previous landlord, so you can check if they paid their rent on time, or if there were any issues with damage to the property.
You need to check their employment history because you need to know if they are truly employed and able to pay their rent. You can check this before you go to the credit check company, by asking the tenant for the details of their job. Then you can phone up and make sure they are employed there.
Now, you want to check their criminal record. If they have a criminal record, it is your prerogative on whether you give them the property to rent, or not. If they have a long criminal record, they might not be trustworthy. However, they also may have learnt their lesson and were rehabilitated in prison. If this is the case, then you should think about giving them a chance.
Just have a chat and be honest with the person and see how they come across in person. They might impress you and feel remorseful about their checkered history. If they seem to be proud of what they have done, then you should find another tenant.
If you have gotten to the stage where you need a renters check, then you need to inform the person and get them to sign a consent form, otherwise the check is unlawful. You should hire a credit check company as well. If you do the checks yourself, you will not have access to the same resources that they do and you might break the law by looking in places that are data protected.
If you are thinking of becoming a landlord, then you need to consider the monetary and political consequences of not having a credit check. Over 80% of landlords now have the credit check before they have the tenant sign the contract. Make sure you are within this 80%, otherwise you will be leaving yourself open to a lot of trouble in the future.