What Background Checks Should Landlords Run On Tenants?

As a landlord, you want to ensure that you find just the right tenants for your rental property. Ideally, this will be someone quiet, clean and trustworthy who will care for the place and pay rent on time.

However, it can be almost impossible to tell whether a prospective tenant has these qualities just by meeting them. That’s why a background check can be a valuable tool in evaluating prospective renters.

What Is a Background Check?

A background check can give you an overall picture of someone’s eviction record, criminal history, education and employment. It’s a common way to screen prospective tenants. Here are just a few of the details you can find out about a person by running a background check:

●     Criminal records

●     Government watch list info

●     Identity verification

●     Eviction history

First Step: Get Tenant Information

The first step in running a background check is to collect several essential details about the prospective renter.

You will need to gather their date of birth, full name, phone number and social security number.  Additionally, you need to be sure to obtain their authorization to run a background check, as well as providing them with the proper disclosures.

What a Rental Background Check Consists Of

Here are the most common components of a rental background check.

Criminal History

By checking criminal history, you can find out about any arrests or convictions on the prospective renter’s record. Be cautious about how you use this information, since some states prohibit the use of a criminal background check as a rental screening.

Evictions

Eviction history is usually a reliable indicator of what kind of renter you might be getting. In fact, this information is probably the most important piece to look at when determining whether or not to rent to someone. A background check can turn up a variety of details about past evictions, including the state and county where it happened, and the date when it was processed by the court.

Employment

Employment records show where the applicant currently works and lists any past employers. This information is valuable because it provides a window onto their reliability, as well as their ability to pay.

Credit Score

By running a credit report, you’ll discover a credit score ranging between 300 and 850. Generally, a credit score of 660 or above is a solid indicator of trustworthiness.

According to Nerdwallet, credit scores fall into the following categories:

●     Bad: 300-629

●     Fair: 630-689

●     Good: 690-719

●     Excellent: 720-850

How Much Does It Cost?

You’ll want to come up with a plan ahead of time as to how you’ll pay for background checks. Depending on the service and what you are checking, the cost can run you anywhere from $20 to $100. Some landlords opt for prospective renters to foot the bill as part of their application fee.

The Takeaway

If you’re planning to run a background check on prospective tenants, make sure you choose the right background check company. They can vary widely in terms of price, timeliness, and the accuracy of results.

Here at Veriswift, you can count on accurate results with a rapid turnaround, ensuring you get trustworthy tenants in your rental property as quickly as possible.