Credit and background checks are an important requirement for renting your property in Pembroke Pines. Just as it is for the surrounding areas like Miramar, Davie, Sunrise, and Weston, among others. Credit and background checks are the first steps in finding the right tenant for your valuable rental property. They work in the interests of a landlord’s long-term rental income and capital gains. Often landlords are lured by “well-presented” tenants, with a load of cash and claims of impeccable rental histories. They are ready to move into “your beautiful home”, and will treat it as their own. Only to discover problems, as the rental occupancy progresses, leaving you with nightmare tenants to deal with.
As a landlord, you would have put in countless hours getting your rental property rent-ready. Including repairs, maintenance, advertising, and marketing to get these very tenants to the door. So, you would be more than tempted to take the cash and let them move in right away. If the property had been vacant for a few weeks, hurting your monthly cash flow, you may be tempted to do away with the due diligence altogether. However, following up with tenant background checks and due diligence at this crucial stage is a very important aspect of that due diligence. Renting out your Pembroke Pines property without completing the first important step, can result in financial as well as civil liabilities.
Credit and background checks
These checks are important when renting your property since they can determine if this prospective tenant is who he claims to be. Does your prospective tenant have the financial means to pay rent on time? Will he shoulder the responsibility of maintaining your property to the required standards? Does this person have a criminal record? Will he turn out to be a threat to the safety and welfare of the neighborhood? Or will he turn out to be an undesired liability, leading to evictions and added costs?
Credit and background checks answer all these important questions. So you can have complete peace of mind that comes from knowing exactly who your prospective tenant is.
Credit Checks & Background Screening
However, before researching tenant backgrounds, you must also research and find the best fit for credit check companies. These checks usually cost $50 per application, and be wary of companies willing to do it for less. Even with a company running criminal checks, double-check if they utilize duly certified and legally acceptable application forms for applications. However, if you intend to use a form yourself, you can search for free landlord forms, and download a copy. But do make sure it is a legitimate and acceptable document.
As prospective tenants come to view your rental property, make sure to hand out the form, and also verify the information submitted in the application:
- Verify their stated ID details against their state ID or national ID
- Verify the income against their bank statement or paycheck copies
- Identify and verify all the residents who will be staying on the property
- Identify all pets (if allowed on the property) with type and weight
Talking To Current And Past Employers
Once the applicants have filled and signed the forms, send them to the credit and criminal reporting agency. Most agencies will revert with a response within 72 hours at most. Use this free time, to follow up on other references like employment or business references. Contact the prospective tenant’s employer, ensuring that it is indeed a business and not just some friend, posing as the employer. When phoning them, pay attention to how the phone is answered and whether you get the feeling of having called a real office. In most instances, you can be upfront about the nature of your call, and ask for details directly. If the responder seems unsure or unwilling to provide the answers you seek, the alarm bells should go off right away.
Asking The Right Questions.
Personal referees and past landlords are next on the list of why credit and background checks are important in renting your property. Try to contact at least two or more landlords, making sure to obtain answers to the following questions. However, bear in mind, that if the applicant is being evicted, their current landlord can’t or may not provide any negative information. In this case, you may need to find alternative means of getting the background information. Also, when conducting credit and background checks, note that friends and family should not be considered as rental references.
- Did the renter complete the term of the lease?
- Were there delays in paying the rent? If so, how often was the rent delayed?
- Were the delays supported by genuine reasons?
- Did the applicant ever damage the property? What was the nature of the damage?
- Was the applicant ever evicted? For what reason?
- Would the landlord be willing to rent them the property again?
- Is there any outstanding dispute with the landlord?
Credit And Background Checks Leading To No!
A typical reference check takes around 30 minutes per applicant. As part of the check, look into the applicant’s credit and criminal history (if applicable), and layer this information with the information you have already collected. Start to build a picture based on facts, and trust your gut feeling. If everything seems to come together and is documentation is legitimate, you can consider the applicant as a suitable tenant. In this case, you can inform them of your approval, and intentions to rent, and confirm a move-in date.
On the other hand, if the applicant’s information seems to suggest that they are high-risk, you need to take abundant caution, in considering them. If you believe that the applicant will not be a good fit and that you will not be renting your property to them, you can inform them of the same. You can do this over the phone, but it is good practice to follow up with an e-mail, stating the reason why. If poor credit is the reason for not renting, the credit agency will provide details of the credit bureau. You can share this with the applicant, and they can obtain a copy of their credit rating at no charge.
How We Can Help.
Credit and background checks are an important requirement for renting your property. Combined with personal due diligence, they are the starting point to a hassle-free and mutually rewarding relationship, that provides a steady rental income for many years to come. Who knows this better than us?
Real Property Management Premier provides professional, trustworthy property management services, from tenant screening to leasing to maintenance to evictions. Whether you are an investor with multiple rental properties or have a single rental, we have the services and solutions to increase the bottom line of your Florida rental property. Follow our expert tips to increase the bottom line of your Florida rental property.
Call us today to find out more.
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