AllRisk Auto Insurance, LLC Blog
Every landlord knows that a good tenant can make him sleep comfortably at night. With a good tenant, you can rest assured that he will pay the rent. With a bad tenant, you can't even be sure about the safety of your house. If you want to have the best renter, you should perform a thorough background check on him first. Here's a list of things to know how to accomplish that background and credit check.
Request an Application
Have your tenant complete an application form. Although you can create your own format, you may use something online. Just make sure that the application covers your potential tenant's essential personal details like current income level, current and previous employers, and financial information. It should also contain the contact information of previous landlords as well as lifestyle information and personal references. You should tell your client that he unconditionally allows you to ask about his references to him.
Run a Credit Check
Some states allow the landlord to perform a thorough credit and background check on the potential tenant. A credit check will show you a lot of plenty of information about the tenant's credit history. Thus, if there are late payments, then the credit history will show the proof. Although one or two late payments do not necessarily mean that you have a bad tenant, you should watch out more for habitual payment defaults. Also, watch out for rent payments.
Run a Background Check
A thorough background check will show the potential tenant's record of evictions as well as the reasons behind the evictions. Also, a background check will show you his criminal records. It's best not to accept tenants who have had a serious criminal record in the past. Besides, public records will show the tenant's unpaid child support, unpaid bills, and other serious financial matters.
Contact the Previous Landlords
First, you should let your potential tenant know that you're performing a background and credit check on him. Also, make him understand why you're contacting his landlords. Make it sound like it's your standard operating procedure for any tenant. In that way, he won't feel that you're trying to single him out, or you really are suspicious of him. Meanwhile, ask the previous landlord about any outstanding debt or a history of late payments. Also, ask about his behavior.
Contact the Tenant’s Employer
Make sure that you contact the tenant’s employer. The purpose is for you to know whether the tenant has a steady source of income. You don’t have to inquire about the salary of your tenant. However, his employer can confirm whether he’s in good standing or not. At least, that should make it easy for you to decide whether to accept the tenant or not.
Some Final Words
The best thing you can do is to interview the tenant seriously. Also, make him feel that you're serious about behavior and prompt payments. Don't make the mistake of focusing on the rental property. A good background and credit check on the potential tenant can save you a lot of trouble in the long run. However, still, have rental insurance ready in case you didn't make the right decision about your tenant.
At AllRisk Auto Insurance, LLC, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (360) 693-4044. Get your free quote today by CLICKING HERE.