As a landlord or property manager, your greatest asset is your property, and the potential tenants you choose to rent to have the power to either enhance or damage that asset. Therefore, it's essential to carry out a thorough screening process before opting for any tenant. A background check is a useful tool to make the process less stressful and more effective.

In this article, we explore how landlords and property managers can effectively use background checks to screen potential tenants.

## Why screen potential tenants?

The simple answer to this is that the benefits of screening potential tenants far outweigh the losses that landlords and property managers can incur if a tenant turns out to be problematic. For one, a tenant with a history of skipping rent could cause significant financial losses to landlords.

Furthermore, a tenant with a background of property damage, drug or criminal activities could endanger the safety of other tenants in the property, and may even lead to lawsuits against the landlord. This can significantly affect the landlord's business and reputation, causing long-term damage to the rental property.

Therefore, landlords and property managers must carry out a comprehensive screening process that includes background checks to ensure they let out their property to responsible and reliable tenants.

## What is a background check?

A background check is a thorough investigation of an individual's criminal, financial, and employment history. The process involves a review of an individual's past, including credit history, employment status, criminal record, and even sex offender registry.

The purpose of a background check is to help property managers and landlords make informed decisions about potential tenants, ensuring they rent to those who are trustworthy and take responsibility for their actions.

## How can landlords and property managers use background checks?

1. Start with a rental application

The first step in the screening process is to have all potential tenants complete a rental application form. The form should include personal information such as full name, current and previous addresses, employment, references, contact information, and any other necessary information related to the rental process.

2. Run a credit check

Credit history is essential in determining whether a tenant has a history of timely or delayed rent payments. The credit check reveals a tenant's credit score, employment history, tax lien judgments, and other payment history. A poor credit score, multiple derogatory marks on credit reports, and unresolved debt can be warning signs.

3. Verify employment and income

This step entails verifying that the tenant is currently employed, and that their income can cover the rent payment. Typically, landlords look for tenants who earn at least three times the monthly rent to ensure that they can afford the rent.

4. Check for criminal background

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Criminal background checks can flag potential tenants who have a history of violence, drug offenses, or sex offenses. Conducting proper background checks ensures that a landlord maintains a safe and secure environment for the rest of the tenants.

5. Check for eviction history

An eviction in a tenant's past can be a warning sign that could lead to landlords or property managers experiencing potential problems. This check can reveal whether or not a tenant was ever sued for an eviction or had an eviction on their record.

6. Verify references

This step is often overlooked, but it is essential to check the references listed on the tenant’s application form. This can help landlords and property managers get a better idea of the tenant's character, habits, and even previous rental history. References could include previous landlords, employers, or personal acquaintances.

7. Review sex offender registries

It's important to ensure that your property isn't rented out to sex offenders who pose a security threat to tenants. A quick check on the sex offender registry will reveal if potential tenants on a watch list that could jeopardize the safety of other renters.

## Tips for successful tenant screening

To ensure a smooth screening process, landlords and property managers must follow some best practices, including:

1. Have a written screening criteria policy that's consistent throughout various applicants.
2. Provide clear information on how the screening process works.
3. Conduct the screening process in a non-discriminatory way.
4. Keep tenant screening records well-organized and up-to-date.
5. Be aware of local laws related to tenant screening and privacy laws.

## Conclusion

When it comes to screening potential tenants, landlords and property managers must exercise due diligence to ensure that they make an informed decision. Background checks are an essential part of the screening process and can provide key information that can help you make that decision.

By following the best practices outlined in this article, you can streamline the screening process and find suitable tenants who are not only trustworthy but can also uphold a safe and secure environment for your property. Overall, it's worth putting the effort and resources into the screening process; the long-term benefits of tenant screening far outweigh the brief discomfort of performing background checks.