Imagine this: People living on your property decide they no longer want to pay the rent. Even worse, the property you rent out to someone is destroyed. Not only do you lose money from having no income, but the damages are also costly.
It's a nightmare and a sad reality for many landlords. Over 2 million evictions occur in the US each year.
While there's no foolproof way to pick the right tenants, there is something you can do to prevent the risk of evictions. Tenant screening is a must. Read on to learn why you should never skip screening.
What Is Eviction Screening?
Although you may not be living in the property you decide to rent, it's careless to not look at the background of someone you do not know.
It's exciting to find a tenant after a long search, but your job doesn't end there. There are a few aspects you need to do with every tenant you meet before allowing them to move in. The basic criteria for an eviction screening are:
- Credit check
- Criminal background check
- Past evictions
- Proof of income
Verifying income is one of the first things you want to do. How else can a person pay on time each month?
A tenant should be making at least three times their rent or more. It's a red flag if they make less or are unable to prove employment.
Solid references are also good to ask for. It gives you a better idea of the tenant. Completing a credit check will also show you a tenant's financial ability to pay.
No one wants to invite a criminal to their property. Focus on any drug or violent charges which could put your rental at risk.
Look for past evictions or lease violations as well. If an eviction occurred once, it may happen again.
Tenant Screening Benefits
Every landlord desires a perfect tenant. You may be very close to that with eviction screening. There are 3 benefits to screening prospective tenants.
Ensures Timely Rent
Late payments from tenants are costly and stressful. At the end of the day, the property you rent belongs to you.
If a tenant doesn't pay on time, you may not be able to pay on the property you owe or profit from it. When you screen a tenant, this scenario may not happen.
Prevents Property Damage
A bad tenant often destroys your property. Damage to a room or appliances often happens out of spite rather than wear-and-tear.
Tenants may also decide to steal those appliances or furniture. Background checks can prevent this.
Better Peace of Mind
Tenants who pay their rent on time each month and keep the property in good condition give landlords better peace of mind. The turnover rate for finding new tenants is low. The tenant is happy staying and you can be happy keeping them at your property.
Tenant Screening Can Prevent Costly Evictions
It doesn't cost much to complete tenant screening, but it can cost everything if you don't. When you invest the time, you are likely to save the headache of dealing with an impossible tenant you need to evict. Contact us if you need a property manager to implement a tenant screening process and prevent evictions.