In a study of renters and landlords done by Porch, 16% of landlords admitted that they've never checked the criminal background of their tenants. These landlords may be more likely to deal with troublesome tenants and the problems they may cause.
By investing in a tenant screening process, you may notice an improvement in tenant retention and a decrease in the number of evictions that you have to deal with.
Continue reading to learn more about why you should be performing tenant criminal background checks as a part of the tenant screening process.
Verifying Applicant Information
A background check can confirm that the information that the applicant gave you matches up with the public record. It makes it easier to make sure that your potential tenant is exactly who they say they are.
It helps you to make sure that you aren't renting your properties out to bad people or people with a track record for missing rent payments and evictions. However, having a criminal record is not enough to disqualify them from the tenancy, so it's important to evaluate each record for the potential to bring up liability issues in the future.
Preventing Liability Issues
When you are deciding who to rent out your property to, it's important to consider the safety of your property, neighborhood, and community. Keep in mind that you have to comply with the regulations set forth by the Federal Fair Housing Act. This means that you can't discriminate against certain classes of people based on their:
- Familial status
- National origin
While you have to comply with the Federal Fair Housing Act, a violent or extensive criminal background can exclude anyone from becoming one of your tenants. For example, if a potential tenant has a conviction involving drugs or domestic violence, it could pose a potential problem down the road.
Reducing Tenant Turnover Rates
By utilizing a tenant screening process, you can narrow the list of potential tenants down to those who:
- Are looking for long-term housing
- Want to renew their lease every year
- Pay their rent on time every month
- Have the ability to pay their utilities
When you don't run a background check, you are setting yourself up for failure. The tenant pool may be flooding with people who don't have jobs and can't make ends meet to make sure that your property is a financial asset on your end.
Using the tenant screening process shows potential tenants that you are serious about renting out and taking care of the property. It shows them that your property is somewhere they'd be happy for an extended period of time.
Need to Do Tenant Criminal Background Checks?
Don't worry! We've got you covered. When you use our tenant screening process, you will receive tenant criminal background checks so that you can make an educated decision about your next set of tenants.
Contact Home River Group in Houston today for more information about our tenant process and our other property management service.