Total rent debt is estimated at 15 billion dollars across America. That huge sum often falls on the shoulders of landlords.
A tenant background check is a great way to safeguard your property and avoid rent arrears and other issues down the line. But many landlords aren't sure about how the process works, or the rules around it.
If you're looking for more information on the topic, read on. We've put together some key information on tenant screening to help you understand the screening process.
Tenant Background Check Benefits
Many landlords pass up performing a tenant screening. They might choose to make their decision based purely on gut instinct or find tenants using old-fashioned methods, like asking friends and acquaintances for recommendations.
Properly performed, a background check can save you time, money, and even reduce the risk of damage to your property. It will also give you peace of mind, knowing the tenant you've chosen to occupy your property is a good fit.
A good background check ensures a potential tenant is stably employed, has a good record of paying rent previously, and isn't beset by major financial problems. This will maximize the possibility of a successful landlord/tenant relationship.
Can I Legally Deny Potential Tenants?
One of the great things about running a background check on tenants is that it gives you a good, legal reason to deny potential problem tenants.
If you go off gut instinct, or a short meeting with a tenant, before deciding you don't want to rent to them, you could be in trouble. If the tenant claims you discriminated against them, you could even face legal action.
If a background check shows up something worrying, you'll have the proof to show why you chose not to rent to that person in particular. This will help you maintain your good reputation as a landlord while avoiding potential legal troubles down the road.
Protect Yourself Legally
When you own a property, it's your responsibility, even if it's occupied by a tenant. That means if something goes wrong, you could be held liable.
Imagine a scenario. A tenant is using your property as a base for criminal activity. Perhaps they have a long history of doing the same thing in other properties, but since you never carried out the proper tenant screening process, you never knew about it.
You could be held criminally liable for negligence. It's so important to screen tenants to avoid this kind of scenario. If you've carried out a thorough screening process and something does go wrong, you'll at least know you did the right thing and be able to avoid potential legal action.
Take the Hassle Out of Property Management
Property management can be rewarding. But it can be stressful too. There are a lot of things that can go wrong, or take up huge amounts of your time.
Working with an expert property management company can take a lot of stress out of the tenant background check process among other issues.
Contact Philadelphia Property Management today to see how we can help you in all areas of the property world.