An effective tenant screening process enables property managers to maintain compliance with the housing laws and follow the best standards when renting their property.
Tenant Screening Reports; an Essential for a Compliant Property Management Business
It entails the identification of potential red flags when going through the background and history of each tenant.
A well-designed software system based on data-driven resources can help to screen applications and streamline the approval process. It provides necessary reports related to your tenant screening services for making quick decisions.
If you are into property management business and are using or plan to use a software to make things easier for you, make sure your property management system has following tenants screening report options.
1- Criminal Records
As a property manager, the last thing you need is a tenant having a shady background that may stunt your business due to their criminal behaviors. Instead of trusting your instincts for judging the character and behavior of a tenant, choose comprehensive property management systems that provide detailed criminal records and background checks.
The reports should refer to local and state laws for acceptance or denial of an application. Here, it is crucial to understand that you need to practice careful consideration for protecting current residents in your property. An automated process reduces your workflows for generating these reports as per legalities specified by the government.
Your property management system may include a nationwide criminal search report providing multistate background checks for each tenant to review up to 7 years of historical data.
2- Credit Reports
Tenant screening services include detailed credit profile reports based on the credit scores, payment history, and credit to debt ratios of the applicants. These reports reveal any sign of financial distress that may lead to defaults in payments by the prospective tenants.
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It is a risk management tool that helps property managers to ask for documents that verify the financial standing of an applicant. You can also generate a full credit report from the leading credit bureau to get an insight into their payment history.
3- Eviction History
The cost of evicting tenants is high, and it may take up to six months to complete the process. Hence, it would help if you refrained from renting your properties to applicants with prior eviction history. Such applicants are more likely to get evicted from your property as well. Choose property management software that offers eviction reports as well.
The report includes records matched to the profile of an applicant, filings in their name, judgments, dismissals, and writs of possession related to a past dispute between the respective tenant and landlord. This report helps to reduce legal exposure and control the cost of litigating the process of eviction.
4- Prior Address Records
As a part of your risk-based approach to tenant screening services, it is important to gather records related to past addresses of your applicants. It helps to identify if the applicant has skipped mentioning a landlord that might give a negative reference.
The report includes work history, financial habit, previous living arrangements, dates registered to each address, and the relationship of the applicant with past landlords. Here, you can also request SSN or social security number verification report that includes prior address history of the applicant.
The Bottom Line:
With an accurate tenant risk assessment, you can make better decisions and offer your property to the best applicants. Choose a property management system integrated with comprehensive tenant screening software to serve this purpose.