Finding the right tenant is essential for landlords and property managers. While tenant screening may seem time-consuming or complicated, it could mean the difference between a smooth and successful rental process or having to deal with problematic renters. Screening prospective tenants will help to identify who is most qualified based on several factors, including who will likely pay rent on time and take care of your property.

Here are six reasons why tenant screening is so important and how to get the most out of your screening process.

1. Confirms Proof of Income

When a potential tenant applies to rent an apartment unit or house, landlords want to have peace of mind knowing the rent will be paid on time with no issues. One way to ensure that this individual can afford the rent amount is to confirm that they have a steady income stream.

During the tenant screening process, you can request documents or statements that prove the person has a steady income that can cover monthly rent, including:

• Consecutive pay stubs
• Tax returns
• Bank statements
• Letter of employment
• Offer letter (for newly employed applicants)
• Social Security benefits or other proof of retirement income

Asking for proof of income is standard practice during the rental application process, so you should not feel as if you are being intrusive in asking for these documents. Ultimately, you want to know that the applicant can afford the rent and that they will not leave you facing a possible eviction.

2. Ensures Creditworthiness

Another important reason for screening tenants is to review the person’s financial background and see if they demonstrate responsible use of money. This is typically done by looking at a credit report. In addition to proof of income, a credit report shows a potential tenant’s ability to handle their finances, pay back debt, and maintain good standing with lenders.

A person’s credit score generally reflects how they have managed their money in the past, which indicates how likely they are to pay rent in full and on time consistently. As a property owner or landlord, reviewing a credit report in tandem with proof of income documents is vital. Just because somebody has a good income does not always mean they pay bills or spend money responsibly.

3. Identifies Criminal Backgrounds

A complete background check will also include the criminal records of any prospective renter. As part of your due diligence as a landlord, you should always check for criminal history to protect your investment, property, and other tenants. While not all crimes are serious, and you do not want to unfairly judge someone for a past mistake, it is still important to weigh a criminal background with the other elements of your tenant screening.

Running a criminal background check may include several records, such as:

• Any felonies or misdemeanors on record
• Sex offender public registry details
• Records from federal agencies, including the FBI and DEA

You should always feel confident and safe when renting out your property. Knowing an individual’s important background is essential to understanding the details of a person’s life that might not be apparent right away.

4. Shows If There Is a History of Eviction

When conducting your tenant screening, you can also investigate a potential tenant’s rental history. The rental history will show whether a person has been evicted in the past, which is a good indicator of possible failure to pay rent, broken lease terms, or damage to the property.

If you can avoid an eviction by choosing the right tenant, it is definitely a smart move and worth the time it takes to run a thorough background check. An eviction is an incredibly complex and stressful situation that includes out-of-pocket expenses. It can take several weeks to complete the process, wasting your time and money. Knowing if an applicant has had eviction troubles in that past can save you an abundance of time and money in the long run.

5. References Help You Learn More About Their Character

In addition to reviewing a renter’s financial, criminal, and rental background, you also want to know whether they are generally reliable and trustworthy. However, it can be difficult to judge their character by simply reviewing documents and numbers. While they can tell you a lot about a person, speaking to people who know the person is a great way to learn more about their personality and how people view them in different scenarios.

During the application process, you can require that renters provide a list of references, which may include employers, past landlords, or personal contacts. While conducting your landlord reference check, you can ask questions like:

• How likely is this person to pay rent on time?
• Have they ever had issues with neighbors?
• Will they keep the rental property in good condition?
• For employers, has this person ever been seriously reprimanded at work?
• For past landlords, would you rent to this person again?
• For family or friends, how does this person spend their free time?

While conducting your reference checks, be on the lookout for any inconsistencies or red flags during your questioning. It could be a sign that the references are insincere, or the applicant is not qualified.

6. Protects Your Other Tenants

Lastly, tenant screening is a great way to protect your other tenants from a problematic neighbor. You do not want to lose good tenants because you chose to rent to somebody who appeared promising on paper, but would have failed the tenant screening check if you had done your due diligence to review their background.

Additionally, part of your duty as a landlord or property owner is to maintain a safe environment for your tenants. Renting to a potential criminal or disrespectful individual can create hazards for everyone involved.

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Working With a Property Manager to Help with Tenant Screening

Tenant screenings provide important benefits to landlords when it comes to finding the ideal renter. For help with screenings, working with an experienced property manager is an excellent way to streamline the application process, complete all the necessary background checks quickly and painlessly, and identify the most qualified applicant.

The Henderson and Las Vegas property management experts at Black & Cherry offer all the services you need to maximize your rental income and make your investment a success, including tenant screenings. Contact our property management team to learn more, or to schedule a consultation with our team.