You welcomed a group of tenants into one of your Miami, Florida properties. Everything seemed great until you visited the home for your first inspection. The property was a wreck!
Avoiding instances such as this is why tenant screening is so crucial. A thorough background check will tell you about a tenant's behavior at other rental properties.
How extensive are background checks for apartments? It goes a little deeper than a potential resident's rental history. Continue reading to learn more.
Credit Report
Running a credit report on a background check for an apartment will tell you all about their past and present financial situation. You'll learn how often the applicant misses payments.
The general rule of thumb is to look for a score of 600 or higher. This indicates that the tenant will most likely pay their rent on time every month. There are three main aspects to the credit report that you should base your leasing decision on.
The first is general information. This will include the applicant's name, employment history, and address.
Fraud indicators are as the name suggests. They're red flags that show up on the credit report.
The tradeline summary will list all the accounts the applicant currently has open. If they're paying three or more loans, they may struggle to pay their rent.
Work Background
Asking about a potential tenant's work history will allow you to gauge whether or not they can pay their rent without any trouble. Some landlords prioritize tenants that work close by because it could guarantee a longer lease term.
All you need to check a tenant's work background is a pay stub or bank statement. You can also ask for a letter from their employer.
Rental History
Running a rental history check will tell you how many properties a potential tenant has been in and how long they stayed there. It will also show you how often they paid their rent on time.
If a tenant has been evicted from three different rental properties in the past, the rental history check will let you know.
Of course, things happen. If you notice that a tenant has a spotless record up until a specific stretch of time, ask them about it. It could have been a case of temporary unemployment.
Criminal Background
For the safety of yourself and the other residents who reside in your apartment buildings, you need to run a criminal background check on any potential tenant.
You don't want to give someone a set of keys if they could potentially put others in danger. It would reflect badly on you and could even end in a lawsuit.
How Extensive Are Background Checks for Apartments Really?
How extensive are background checks for apartments? As you can see, the answer is very. To gauge if a potential tenant can pay their rent and act as a good neighbor, you have to check their credit history, rental history, criminal background, and more.
It can be a lot to manage if you don't have the tools and experience to perform a comprehensive screening.
Let PMI Biscayne Bay help. We've been screening tenants in Miami, Florida, for over 15 years. Contact us today to learn more about our services.
