A landlord that purchases a property with the intention of renting it out in order to pay the mortgage or bring in an additional income, has a number of choices available to them on finding the right person to rent their property out to.
Firstly the landlord can choose to approach an agency. Agencies take a small percentage of the rental amount and handle the entire process, from finding a suitable person to rent to through advertising and their list of potential customers to collecting the rent and handling any maintenance issues.
Approaching an agency is ideal for anyone who doesn't live in the same state or that has their own work commitments and doesn't have the time to phone plumbers, electricians and collect rental amounts. Using an agency also means that the risk is reduced. Agencies follow strict guidelines when choosing a potential person, which includes a thorough tenant background check.
Some landlords prefer to handle the entire process on their own. This gives them more money on a monthly basis, because they have removed the agency from the rental process. At the same time, this offers a higher level of risk because a landlord doesn't have the same resources and time that an agency has.
There are companies that offer a tenant background check and this should be done with each and every potential applicant that completes your application form for the property.
A landlord needs to put an application form together which gets as much information on the applicant as possible. This should include name, current address, telephone number, social security number and a list of reference and contact numbers from previous landlords.
It is essential that you take the time to follow up on these references to ensure that the applicant is trustworthy and reliable. It gives you a chance to ensure that they paid their rent on time, when they left they gave proper notice as per the lease agreement and that they left the property in a good condition.
Over and above phoning the references, you should pay for a tenant background check. This reporting services gives you the additional peace of mind you need when signing a lease with one of the applicants and giving them access to your asset.
The tenant background check ticks all the boxes on information you need to make an informed decision. You may even find an address is revealed which wasn't mentioned by the applicant and this is your opportunity to ensure that they were honest in their application.
Paying for a tenant background check gives you that added peace of mind needed to sign the lease knowing the applicant you have chosen is reliable, trustworthy and likely to care for your property as you would.
Unfortunately renting out a property comes with a level of risk, any applicant that has passed all your checks can still end up in financial difficulty, resulting in them leaving the property without warning and leaving you in serious financial difficulty.
In order to avoid this happening, you want to take every precaution possible before making a final decision on the best applicant to hand over the keys to. This should include the applicant completing a detailed form, a tenant background check and following up on references.
Following these steps will ensure when you choose an applicant, you are choosing on that will pay their rental in a timely manner, will care for the property and will remain in the property for the duration of the lease without causing damage.