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Tenant Background Checks: 10 Ways They Can Help You Avoid Nightmare Tenants

Sunday Odudu Bio
A landlord giving her new tenant keys to her apartment.
Have you ever found cigarette burns in your rental after the "sweet" tenants moved out quickly? We know your pain.

Picking the wrong tenant can be more than just a nuisance; it can lead to significant financial strain. Surveys show the average US household spends around $1,570 a year on maintenance and repairs. Imagine how those numbers soar when you're dealing with property damage from careless tenants.

Thankfully, top background check services allow you to vet potential tenants before handing over the keys. By screening applicants thoroughly, you can minimize risks and protect your property investment. Let's explore 10 ways background checks help you avoid nightmare tenants.

» Need to vet potential tenants? Check out our landlord's guide to tenant screening.

1. Verifies Applicant Identity

Start your tenant screening process with identity verification. This crucial step ensures all subsequent checks are based on accurate information. It prevents applicants from hiding a problematic past under a false name, setting the foundation for an honest landlord-tenant relationship.

BeenVerified can assist in this process by cross-referencing provided information with public records and confirming the applicant's name, age, and address history. This thorough verification helps you confidently proceed with other screening steps, knowing you're dealing with the person they claim to be.

2. Uncovers Their Criminal History

Conducting a criminal background check isn't just a formality; it's a vital step in protecting your community. When you know that someone has a violent past, you're taking active measures to safeguard all your tenants.

Issues like substance abuse or vandalism can also pose serious risks to your property's security and overall harmony. A service like Intelius can help you uncover criminal records, providing valuable information to make informed decisions about potential tenants.

Remember that past mistakes don't always predict the future. It's crucial to balance safety and fairness, staying within legal limits to ensure everyone's rights are respected.

3. Reveals Credit History Issues

A thorough credit check can indicate how reliably a tenant will pay rent and manage their finances. Signs of bad credit might point to potential rent arrears or overall financial instability, which are red flags for any landlord.

Credit checks also reveal the tenant’s ability to cope with unexpected financial shocks, like layoffs. A good credit line suggests that they can still meet rent payments during tough times, ensuring a steady income flow for you despite unforeseen circumstances.

4. Checks Rental History

This check shows how long they've stayed at previous rentals and whether they've been consistent with their monthly payments. It's not just about duration and payments; it’s about commitment to rental agreements.

Rental history reports can also provide a glimpse into how tenants treat the properties they rent. Did they maintain the space well? Were there any complaints from previous landlords? These insights are invaluable in deciding whether they’ll be respectful and responsible tenants in your property.

5. Detects Eviction Records

Evictions are major red flags for any landlord, often leading to losses that can spiral into the thousands. TransUnion found that eviction-related expenses average around $3,500 for property managers, and the process can drag on for 3-4 weeks.

Examining a tenant's eviction history can help you spot recurring patterns that indicate problematic behavior. This could help you gauge their reliability and respect for rental agreements.

6. Verifies Employment Status

It's all about stability when you're renting out your property. Checking if a tenant has a steady job is key because, let's face it, consistent rent checks rely on it. When you verify their employment, you're essentially checking if their job can comfortably cover the rent.

Don't just take their word for it, though. It's a smart move to ask for some supporting documents like tax returns or bank statements. This gives you proof of the income they need so you can feel secure about their financial standing.

7. Weighs References Against On-Paper Background

Chatting with references can really help you understand who you’re dealing with. It’s one thing to see a clean record on paper; it’s another to hear firsthand about a tenant’s character and reliability. Ask previous landlords about payment habits, how the tenant treated their rental space, and if there were any notable difficulties.

Don’t forget to dig into their communication skills, too. It might seem like a small thing, but knowing if they’re prompt or if they drag their feet when responding can tell you a lot about what to expect. This can save you from potential communication headaches down the road.

8. Locates Bankruptcy Documents

Bankruptcy documents are a key piece to understanding a tenant’s financial stability. Sometimes, these details might not pop up in a regular credit check, especially if the tenant hasn’t used much credit in the past. That’s why it’s smart to look a little deeper.

Consider directing your search toward their place of work, too. It’s great if a tenant seems reliable, but what if their employer is on shaky ground? Additionally, if tenants run their own small businesses, any bankruptcy filings related to their ventures are crucial clues about the stability of their future income.

9. Alerts You of a Sexual Offense History

When screening tenants, it's crucial to be aware of any history involving sexual offenses. TruthFinder can provide detailed reports that include sex offender registry information, helping you make informed decisions about potential tenants.

As a landlord, your top priority is the safety and security of the community and your other tenants. Being informed about a tenant’s past in this area helps you maintain a safe living environment and ensure the peace of mind of all residents. Intelius can help you find any

10. Shows Any Involvement in Legal Battles

Uncovering a tenant’s involvement in legal issues isn’t just about finding past convictions; it also reveals if they're currently suspected of any crimes or fraud. Knowing their legal history gives you a clearer picture of what to expect and whether their past could impact their tenancy.

Moreover, knowing their legal expenses can help you assess whether they’ll be able to afford ongoing legal proceedings and timely rent payments. This insight ensures you choose tenants who are both financially stable and legally uncomplicated.

» Find out more about what information a background check includes.

How Much Does a Background Check Cost?

The cost of a background check really depends on what you’re looking to find out. Some free background search services provide basic insights that are perfect for a quick glance at someone’s history.

Keep in mind how deep you dig can dictate the price. Extensive checks can run over $100, so consider sticking with budget-friendly options like US Search and PeopleLooker. You could even skip a few checks to save extra dollars.

» Click here to learn more about how much background checks cost.

How to Decide on a Screening Service

There are many factors to consider when choosing the right screening service. However, just make sure your provider complies with the Fair Credit Reporting Act (FCRA) to ensure all information is legal and accurate. This protects both your obligations and the applicant’s rights.

Here are some other factors to consider:

  • Performance history and reputation: Chat with other property managers about their experiences and recommendations. Trustworthiness comes from proven reliability.
  • Certifications and accreditations: In addition to FCRA compliance, seek out services with additional credentials, like those from the Professional Background Screeners Association (PBSA).
  • Report detail: Comprehensive tenant reports should include credit scores, criminal records, eviction histories, and rental payment records. Compare plans and pricing for the best value.
  • Service speed: When time is of the essence, choose a provider known for quick, efficient service like Instant CheckMate. This is crucial for both landlords and tenants who are in a hurry.

» Look at these tips for choosing the best background check sites.

Empower Your Property Management with Smart Screening

Implementing a comprehensive tenant screening process is key to building a community of responsible renters and protecting your investment. By balancing thorough background checks with fair housing practices, you can create a safe living environment while minimizing risks and reducing turnover.

» Look at these tips for choosing the best background check sites.

Sunday Odudu Bio
Sunday Odudu, a top 10 writer and an expert in home warranties, has over a decade of experience in sales and public administration. As a seasoned insurance producer and former lead renovation specialist, he has collaborated with start-ups, global corporations, and governmental bodies.

Note: Some or all background search services featured on this site are not subject to the Fair Credit Reporting Act, 15 USC 1681 et seq., ("FCRA") In order to make decisions about consumer credit, employment, insurance, tenant screening, or any other purpose that would require FCRA compliance, make sure you choose the appropriate service for you. Be advised that only consumer reporting agencies may provide consumer reports. This is applicable, but not limited to, a background search, credit background check, criminal background check, and/or driving record.