How to Perform Affordable Background Checks as a Landlord
As a property owner, it is your responsibility to ensure that tenants meet specific standards and comply with legal requirements. This includes conducting thorough background checks on potential tenants. The dos and don'ts of performing these checks can be daunting, but with the right approach, you can successfully vet your applicants while staying within your budget and complying with regulations.
Understanding the Importance of Background Checks
Background checks are essential for property owners who manage rental units. These checks help protect your property and ensure a responsible and reliable tenant. However, the number of rental units you manage may impact the method you choose for conducting these checks. For smaller landlords renting a few units, web-based services could be a practical and affordable option. Larger landlords might consider finding a specialized company to handle these checks in bulk, reaping better rates and more comprehensive services.
Protecting Sensitive Information
Background and credit check reports contain sensitive information that must be protected once acquired. Before proceeding with any check, it is crucial to obtain written authorization from the applicants to conduct the checks. This authorization should also detail how the collected information will be used and stored. Landlords who are unsure about the process should seek legal advice to understand their liability and how to avoid potential issues.
Relevant Documentation and Requirements
For a comprehensive vetting process, landlords should require applicants to provide recent credit checks. This gives insight into a tenant's financial responsibility. Additionally, obtaining a police report is a must. This helps verify any criminal history that might affect the suitability of the tenant.
Supplemental checks such as online searches and social media verification can also be beneficial. Google searches of the applicant's name, address, and phone number can reveal public records that may influence the decision. Checking major social media sites offers a glimpse into the applicant's online behavior and character.
Practical Steps for Background Checks
Several steps can be taken to conduct background checks efficiently and affordably:
Consider signing up with Naborly. This service provides a free credit check and a criminal records check for a small fee. Utilizing such services ensures a thorough review without straining your budget.
Thorough online searches can help verify the information provided by the applicant.
Check all major social media sites to gather a broader perspective of the applicant's character and responsibilities.
Visit the applicant's current address unannounced. Observe the premises and attempt to speak with the tenant to gauge their living situation and behavior.
Verify previous landlord references by cross-checking phone numbers and emails. Be wary of unscrupulous tenants who might use false references.
Always approach previous landlords or references with caution, especially if the tenant is trying to leave a difficult situation. Previous landlords might give positive reviews to make the eviction process easier.
Conclusion
Performing affordable and comprehensive background checks is crucial for landlords. By following the guidelines and utilizing available resources, you can ensure that your rental property is in safe and responsible hands. Remember, the aim is not only to protect your investment but also to foster responsible and respectful tenancies.