If you are listing a rental property and want to move through the process quickly, one thing you shouldn’t take off of your list is background screenings for new tenants. While this might seem like a hassle and is an extra expense, this can actually save you money in the long run. Here are four ways an initial background check on tenants can save you time and money.
1. Limit Possible Property Damage
Without a proper background check, you might end up with a less-than-stellar tenant. While the chances of damages might seem slim, there are certain tenants that might be reluctant to report damages or might not abide by your pet policy. These can be vetted through background and reference checks. If anything stands out from a potential renter’s past, you’ll catch this quickly.
2. Issues With Other Tenants
If you inadvertently sign on a tenant that will give you a headache with ongoing issues, they might bother other tenants as well. Things like loud music, illegal activities, or other behaviors that can bother neighbors will all be reported to you and will waste your time with complaints. Help all of your tenants by doing background checks on new renters before issues arise.
3. Less Turnover
While you might sign one year leases with your tenants, without background screenings, you won’t have any idea if your prospective renter has broken rental agreements in the past. The best way to ensure a trustworthy tenant is to have this verified through a background reference check.
4. Weeding Out Process
If you have applicants that have something to hide, they probably won’t agree to a background check in the first place. You won’t have to waste time and money up front, and will automatically vet your prospective tenant list. The hope is that applicants that agree to this additional step won't have anything come back on their background checks that could cause alarm.
If you aren’t sure where to begin when it comes to screening potential tenants, a property management team can help with this as well as other tenant-related matters. Ensuring that background checks are a part of your application process will protect you, your properties, and other renters.