Did you know that more than one-third of the households in the U.S. were renter-occupied? Given that the U.S. population totals more than 300 million, that's a significant number of renters. With so many prospective tenants, how do you find the right one?
When performing a background check, you should review items like income and possible eviction history. So if you're wondering how do landlords check for evictions, read on to learn more.
How Do Landlords Check for Evictions?
Landlords have many duties, but none are more important than screening applicants for a property. The main way to check for evictions is to run a rental history report. This report includes the addresses an individual has resided at, the dates they occupied an address, and any issues, including evictions.
There are multiple ways to get a rental history report. Some companies specialize in producing these, along with a standard background check. Other landlords may prefer to do this themselves. In these cases, they ask a tenant for a list of previous addresses and conduct interviews with past property managers.
What Else Should Landlords Check For?
Evictions aren't the only indicator a landlord should look for. Since rent collection is about making payments on time, requesting a credit report is standard practice. There are three major credit reporting agencies who perform credit checks.
Assuring that a perspective tenant has the income to afford the property is another obvious check. A landlord can simply ask an applicant for a few of their past paychecks. Some of the same companies that run rental history reports may also do employment background checks.
In addition to ensuring a tenant is responsible and has the financial means to afford it, you should also perform a tenant criminal background check. This helps protect your safety, as well as the safety of the other tenants.
Rent Collection Issues with Active Tenants
Even with all the due diligence, renters will have late payments. There are several steps you can take to avoid this, including good communication, automated payment, and clear consequences for late payment. Having an experienced legal team is also helpful.
If you choose to go with an automated payment system, it isn't unreasonable to include a processing fee to help cover the cost. Prior to doing this, check for any state or local regulations.
Are You Ready to Perform a Proper Background Check?
Now that you know how landlords check for evictions, what are you waiting for? The first thing to do is get a rental history report, as this is the most comprehensive tool. Next, you should do a credit report and criminal background check. Despite all these tools, you're likely to have issues with on-time payments so having the right tools for active tenants is essential.
If you're in the Central Florida area and need help with property management, contact us for all your needs.