If you do not screen tenants, you really need to start. If not, you might end up with a problem tenant or in trouble for not using techniques in accordance with fair housing practices.
Good tenant screening helps you not take a chance, and helps you find a great tenant that would pay the rent on time. If you’re still not convinced that tenant screening is right for you, read on:
Weed out bad apples
Background check is a big part of the tenant screening process. When you check a tenant’s background, that typically involves you calling previous and current landlords and employers. They might disclose some information that will sway your decision for or against the prospective tenant. Employers are able to confirm the employee indeed working there. Sometimes employers are willing to confirm salary, but most time they will not for the sake of privacy. Information you receive from another person is invaluable, since you can’t really get this insight from a paper application.
Learn about credit history
Another step in the tenant screening process involves peeking into the person’s credit history. You will need to get the tenant’s consent to do a credit check. Three main credit bureaus are Experian, TransUnion and Equifax. They can all do it with a fee. If you find that the person has a record of late payments, there’s a chance that the rent will be late as well.
Protect you from discrimination
When you use a tenant screening process that is systematic and consistent, it decreases the chances you’ll be accused of practicing discrimination. An accusation of discrimination typically will not happen to you, but you will get this benefit for free just as a side effect of a good tenant screening. Why not?
How Tenantify can help?
Tenantify empowers landlords to make informed decisions by verifying tenant’s employment and income. Tenantify is different from a traditional tenant screening service, as we focus on tenant’s current financial situation and assess tenant’s ability to make monthly rent payment. It should not replace the traditional credit check, but we believe that employment / income verification is superior because it reveals tenant’s current (rather than past) ability to pay.