Benefits of Tenant Screening
Tenant screening is the process a proprietor or homeowner goes through in order to learn more about their applicants. It is a way to get to know potential renters through background checks, employment, credit history, and personal information. If the applicant seems desirable, he or she will be able to pass the evaluation and rent the property. Tenant screening protects the property owner from allowing unfavorable people to rent, which can lead to even more problems. There are many benefits to tenant screening, all of which a homeowner should be aware of.
Minimize Income Loss
Requiring a tenant screening minimizes income loss for the property owner. These losses can include renters being evicted, defaulting on the lease, or committing insurance fraud. By meeting the applicants before they start renting, a property owner can find out if the interested applicant has ever paid rent late or made any other defaults on their lease. With this information available, a homeowner can decide if the applicant will be reliable enough to make payments on time.
Get Reliable Info
Screening ensures that a tenant is being up front about everything, without the risk of them lying to a proprietor. The tenant screening process is also a lot quicker than interviewing prospective applicants. The quicker the process, the faster rental vacancies can be filled. Homeowners will want the application process to be as easy as possible so that they do not have to spend more time than is necessary finding renters.
Eliminate High Risk Applicants
If an applicant has a bad credit score, a criminal background, has committed insurance fraud, or has defaulted on past leases; they could be considered high risk. By eliminating these possibilities early in the application process, a homeowner can protect him or herself from late payments and difficulty with the tenant later. By putting your potential buyers through a tenant screening, homeowners can also avoid insurance liability. If a tenant does not have good insurance coverage or any insurance, he or she will be subject to insurance liability.
Overall, tenant screening is the best way to stay safe as a homeowner or property owner. You will be able to weed out unfavorable renters without having to go through a grueling interview process. You can also use tenant screening as a tool to find repeat renters if you own a beach house or condominium. It is better to have screening as an option instead of worrying if your tenants are going to be reliable.
Tenant screening is completely private and can be used at the discretion of the property owner. It can also be used to detect identity theft in the event that someone is trying to rent a property under a false identity. If you advertise that you will have your potential renters participate in a tenant screening on your home listing, you will automatically reduce the risk of having identity thieves or criminals fill out an application. To protect your home, community, and yourself, look into starting your own tenant screening process.