Screening Tenants - Background Check On Potential Tenants

Landlord Pitfalls To Avoid

Not Checking or Screening Tenants

They seemed so nice at first: We have all read the horror stories that go along with not screening tenants before letting to them. Someone fails to pay rent. Someone must be evicted. Someone starts to cause nuisance to neighbours or worst case scenario, someone starts illegal activity at your property. Yet again and again, landlords agree to let to tenants without thoroughly screening them or checking out their past histories.

This is one of the most common mistakes that landlords, especially new ones, make. A potential tenant seems nice, so with a nod and a handshake, the property is rented. Then the landlord finds out that the tenant has no job, has been evicted from his last three properties, and has a criminal record. The Landlord then has to go through the long, stressful process of getting that tenant out.

This is an extreme example, but it gets the point across. People are not always what they seem. A prospective tenant wants something from you - a rental. They will put forth their best image and behavior to get that property, so you, as the landlord, must be vigilant. What they do and say when they meet you may be a representation of fact or fiction. It is up to you to figure out which.

Therefore, every tenant should be thoroughly checked before taking them on.

• Credit Check

Perform a credit check to assess their pattern of paying bills. If this is good they will have a high rating, if not they will have low rating. This information helps you to decide if you want to make the investment in them as a tenant, and don't be fooled. That is what this is for you, a financial investment. If it is a very high risk, don't take it.

• History of Eviction

Find out if they have a History of Eviction. You need to know if this possible tenant has a history of bad relationships with other landlords. As a landlord, you need to know this before you agree to let your property. The more negative history in the past, the higher the risk is for the future.

Part of your landlord responsibility is to provide a safe and secure living arrangement for all of your tenants. If you skip checking one tenant, you run the risk of endangering everyone involved.

• Look, Then Decide

In the end, there may be elements of a background check that you are willing to overlook. Maybe the tenant had a poor credit history in school but has been responsible ever since. Maybe you can overlook some parking tickets. However, if you don't do the checks, then you cannot make informed decisions about your prospective tenants. You need to know all of the information to decide what you are willing to agree to. The tenants who don't want to give you this information probably don't want to for a reason. This is a warning to you and you should take it. Not doing so is risky and unwise.

As can be seen, if you don't screen your tenants this could be terrible for your buy to let business. Thoroughly screening tenants and performing the checks mentioned will pay off tremendously as you weed out those nightmare tenants that can suck your business dry.

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