When a landlord has a property on the market, it can be tempting to accept the first seemingly normal tenant that comes along. After all, leaving a unit vacant for months doesn’t seem like an attractive alternative. Many property owners who are eager to start collecting rent payments stop at income verification and try to save money by skipping the background checks. Unfortunately, many of these same landlords end up dealing with scam artists or unreliable occupants. It’s important to remember that having a great job doesn’t mean someone automatically knows how to budget their income. Someone addicted to spending may be consistently late paying their bills, and the only way you can know about these bad habits is by conducting a thorough tenant screening before the lease is ever signed. At DKRentals.net, we help residential and commercial landlords in Atlanta, Alpharetta, Cumming, Norcross and other Metro area communities manage their properties. Along the way, we’ve learned a lot about the benefits of tenant screenings, and the importance of proper credit checks. Still on the fence? Here are a few reasons why performing consistent credit checks can help protect you against future losses.
Requiring a Credit Report Will Narrow Your Applicant Pool
If a landlord fails to acknowledge that they conduct background screenings, it can automatically attract the wrong crowd. Scammers are always looking for an easy target, and love to find individual landlords that are lax on the application process. If you require a long form with questions about rental and job history, ask for documents that verify income and charge an application fee, you will significantly decrease the number of people who will try to take advantage of you.
Knowing Your Tenant’s Credit History Will Lower Turn Over Rates
Everyone makes mistakes, so expecting perfection on your credit checks may be unrealistic. However, if you can see that they show a consistent pattern of late payments on bills, there’s a good chance they’ll also be late paying rent. Wildly fluctuating spending habits are often accompanied by other erratic behaviors, and they may have difficulty holding jobs for long periods of time, and be more likely to move around. A tenant who has a lower debt to income ratio, has held the same job for years and has relatively good credit will be more likely to take care of your property, pay on time and renew their lease.
Don’t Forget to Check for Employment and Criminal History
While credit checks are a vital component of the screening process, it shouldn’t be your last step. You’ll also want to verify their employment history by requiring names and phone numbers on the application. Asking for the information is a step in the right direction, but it won’t be effective unless you follow up and make some phone calls. Be sure to check for criminal history as well. Having good credit doesn’t mean they haven’t had multiple run ins with the law. Your tenant might pay on time or early every month, while running a meth lab in your basement. Protect yourself, your property and your community by going the extra mile.
Are You an Atlanta Area Property Owners Who Needs Help Managing Tenant Screenings?
Do you own a rental home or office space in Atlanta, Georgia or a nearby community? If so, contact the professional property management team at DKRentals.net. We proudly provide a wide range of services including tenant screening and background checks. Call today to find out what we can do for you.
