Conducting Background Checks
The key to finding responsible and reliable long-term tenants is selecting the right tenant from the onset. Adequate screening up front will help you eliminate potential short-term renters or long-term headaches. Xepco Property Management can guide you through screenings to find the best fit for your property while also keeping in mind discrimination and other laws that you must follow.
Rental Application Form
The first step is to create or use an application that covers all necessary information you may need to evaluate a future tenant. Include questions about financial means, employment, and past residence information. In addition to these questions, the tenant will respond to individually, absolutely include release forms that authorize background, criminal, and credit checks. Look for potential patterns like consistent turnover of employment or frequent moves. Also, any areas left blank on the form could be a red flag for information the tenant may be trying to hide.
Contact all references listed. The application should request references from previous landlords, employers, and character references. Xepco Property Management looks for gaps in landlord history that might raise suspicion, as leaving out contact information for recent landlords could be a bad sign. In addition to asking previous landlords if a tenant paid rent consistently, additional questions can offer insight into what renting to that tenant will really look like. Ask questions about timeliness of payments, damage to the unit, any conflict with neighbors, if the security deposit was collected, and if the landlord would ultimately rent to this tenant again. Xepco Property Management can use information from references to avoid risky renters.
Criminal Background Checks
While credit checks are vital to assessing a potential tenant’s ability to pay rent, credit checks do not tell you about a person’s criminal background. Not only are you seeking to run a profitable business, it is also your responsibility to ensure the safety of the community. It is difficult for law offenders to become home owners, so the likelihood of several of your applicants being repeat criminal offenders is fairly high. Criminal checks no longer take weeks to process and are well worth the effort. Other registered lists such as terrorist activities and sex offender lists can also be checked.
Xepco Property Management can help you screen your prospective tenants to find a lasting tenant for your rental business.