What you need to know about screening tenants
Your rental income properties are an important asset when you are a landlord. That is why screening and background checks will ensure peace of mind to any property owner. Catching application lies and red flags in the potential tenant's screening process can save you a lot of future hassles.
It is beneficial to use a rental management company that offers guaranteed rental income, can allocate a property manager to setup tenancy agreements. They will also take care of credit checking, criminal record reports and background screening.
8 things to do when considering prospective tenants for your property rental
Invest in a telephone call with the potential tenant
This is an easy way to narrow down a list to people who are serious and qualify. Communicate the exact monthly rental, security deposit and any rules you might have. Ask them for their contact details, references and why they are moving from their existing location. Before running a background check, provide them with an application form to complete.
Follow legal steps with background screening
The same screening guidelines must apply to all applicants. Be careful not to discriminate against tenants based on ethnicity, religion, disability, or familial status. Familial status is trickier than it sounds. "Perfect for a single person" advertisement could be overstepping.
Use a screening tool that supplies all the correct reports required
The reports should include these screening services among others: past evictions, credit report, criminal record, address history and employment history. Not all screening tools provide the same reports, so pick one that is best for you.
Also, make sure your screening tool covers the entire country, to avoid any surprises.
Running a full credit report is probably one of the most important parts of screening
Knowing how your applicant manages their financial obligations, can determine how likely they are to pay their rental every month. It is vital to know if the applicants ever been declared bankrupt or insolvent? Do the applicants have any judgements against them?
Are you allowed to run a criminal background check?
Before considering an applicant, criminal record check makes sure it is permitted by law. There are certain rules to follow when deciding to run a criminal background check. The law states that you should consider the "nature, severity and age of conviction".
Be observant for red flags through contradiction of information
When considering tenants constantly be on the lookout for false or misleading information in their application forms. By comparing documents, you will quickly be able to judge truthful or misleading information.
Keep all information private
Never disclose the contents of background checks with others or leave it where it is easily accessible. You do not want to be held liable for divulging sensitive or private information.
Property management companies offering guaranteed rent schemes are highly advised. They will be most effective with privacy keeping and following all the necessary protocols.
References are paramount
Past landlords and employers help expose information that is not visible on paper, regarding term of tenancy at previous addresses. They could possibly inform you if the prospective tenant regularly paid rent late or damaged property and so forth.
Most UK property investors will agree that property managers provide seamless housekeeping convenience in this bustling market. Here are five more reasons using a property manager in London might be the solution for you:
1) We take care of the tenants You will have good quality tenants on your property faster without the burden of the screening process. We are the single point of contact ensuring you totally professional distance from the occupants.
2) We take care of the rent
You will have your maximum rental income in your bank on time every month, guaranteed.
3) We deal with the confusing legal stuff
Our business is to keep up to date with rental law and legislation and use the best ways to avoid violations. We will take care of all legal documentation and contracts.
4) You can sit back, relax, and receive guaranteed monthly rental income without any additional fees.
It can become a fulltime job to manage your rental properties between payments, tax on rental income, admin, maintenance, and inspections. Relinquishing your duties to a property management company allows you to benefit from your investment without sacrificing time and sanity.
Aston Pearl are real estate agents in Croydon, London? We have a vision to see maximize the landlord’s rental income while minimizing the hassle.
Property management Croydon, click here.