There are over 48 million individual rental units in the United States. That means there are over 48 million tenants in the U.S.
If you are a landlord, you want to ensure that you are getting the best of those 48 million individuals. Ensuring their credit record is on point, they can pay, and aren't hiding anything is crucial to protect yourself and others in your rental property.
There are other benefits to a tenant background check as well. Keep reading to learn about them.
Protect Yourself From Liability
If you don't run a background check, you are risking the fact that the tenant you are renting to may be a liability. They could do something to your property or elsewhere that then puts you in a tricky situation as having them as your tenant.
Running a background check on your tenant before they move in can prevent the hassle that this could cause.
Less Likelihood of Renting to a Dangerous Person
Running a tenant background check is important when renting a property because it can show you the history of a tenant. Not everyone is going to tell you all about themselves. While this is not always a problem, if they have a history of issues, then you would want to know.
Making sure your rental property is safe for everyone is just as vital as making sure that you are not liable for issues. By preventing a potentially dangerous person from renting, you can rest assured that you won't have any safety issues with your tenants.
Determine Their Ability to Pay
By running a background check, you are able to see if that possible tenant has ever been evicted before. Not only that, but you can also see how many times they have moved in the last few years as well as if they have a high debt-to-income ratio.
By knowing these things, you will know if they will be able to pay their rent each month. If you are not willing to deal with this, then you will have to pass on that tenant. However, it's better to know upfront than not know until you are not being paid by your tenant and it's too late to say no.
Minimize Tenant Turnover
Does it seem odd that running a background check could actually minimize tenant turnover? Well, it can!
When someone gives you all of their information for a background check, they are more willing to be upfront with you and show that they want the place. This means they are probably not looking to leave any time soon.
A background check can also minimize turnover because it means that you are picking the cream of the crop to live in your property.
Importance of a Tenant Background Check
Skipping over a tenant background check may mean getting someone to rent more quickly, but it can have detrimental effects.
If you are ready to maximize your rental's potential and ensure you are doing everything right, contact us at Wilkinson Property Management. We'll help you do everything when it comes to finding and securing new tenants.