In a 2022 survey, 90% of landlords reported that they conduct tenant background checks.
There's a good reason almost no landlord in Asheville, NC, wants to take in a tenant without doing any screening. Your tenants can make or break your life as a rental property owner.You don't want to spend most of your time chasing down rent payments or solving daily complaints because a tenant is making life hell for everyone in the building or community.
However, tenant screening is a detailed process that can be challenging for most DIY landlords. To help you do it right, find a few best practices you should observe.
Establish Screening Criteria
The screening criteria is a checklist that has all the minimum conditions that a rental applicant must meet. This should include things like credit score, income level, criminal history, and rental history. Be sure to establish the minimum credit score that a renter needs.
When developing the checklist, ensure you're aware of the relevant landlord-tenant and fair housing laws. For example, the checklist shouldn't have a discriminatory condition. You cannot evaluate an applicant's suitability based on their race, religion, gender, or other protected characteristics.
Create a Detailed Rental Application
Rental applications that have all the information you need from a prospective tenant make your work much easier. This means putting effort into creating application documents with all the necessary questions. Ask the applicants to fill them out exhaustively to prevent preliminary rejections.
You can make this form available on your rental property's website, or email it to interested renters upon request.
Verify the Provided Information
The information a rental applicant provides shouldn't be taken as the gospel truth. It's not uncommon for renters to lie to landlords about their credit scores or employment history.
As such, it's crucial to conduct your own tenant verification to ensure they'll be able to pay rent. Run a credit check to verify that the information they've provided checks out. If they're formally employed, call the employer to ensure that's the case.
Most landlords also look into the applicant's rental and eviction history. If the applicant has been a renter before, don't shy away from calling past landlords to get insights into their behavior as tenants.
Use a Tenant Screening Service
Tenant screening requires a certain level of expertise. You need to know what you're looking for and how to verify it. For instance, if you're not familiar with credit score reports, you might not know how to interpret the information, or you may take too much time.
If you're a first-time landlord or don't have enough time to screen tenants, don't rush through the process. The best practice is to outsource the job to a tenant screening service provider. These companies have the staff and technology to do comprehensive background checks and analyze the data within a short time.
Get the Best Tenants in Asheville, NC
Comprehensive tenant screening is key to finding high-quality tenants who won't make your life miserable. Follow these best practices, but don't hesitate to get professional help if you feel overwhelmed.
At PMI Mountain and Main, we offer tenant screening and more! As a full-service property management company that's passionate about delivering an amazing client experience, you can count on us to manage your Asheville property competently.
Contact us today.
