How to do a background check on tenants

How to do a background check on tenants

Landlords typically will have several things to work with, when considering new tenants. The quality of a tenant is commensurate with the quality of the property. Good habitations bring good tenants. try to have a property with good curb appeal. It is better to have a high monthly rent payment than a low one. Doing this first will prequalify your customer base. Tenants are masters of deception and they can bring the most trustworthy people to bare upon their needs. You need to find people who know your tenant. Pay them for information. So it is very important to have a good tenant . You need a background check on tenant.

Why are You required a good tenant ?

A good tenant is respectful and responsible. They abide by the terms of the lease and pay rent on time, follow the rules/regulations, and maintain their leased space as if it is their own investment(keeping it sanitary to prevent insect infestations and routine cleaning to keep floors, cabinets, appliances, tubs etc. in good condition). They respect the landlord’s property by reporting issues in a timely manner (i.e. not letting a leak go unreported for days/weeks and then finally reporting it when they are sick of looking at it or damage has become more costly). They respect other neighbors and any shared spaces too (keeping noise to a minimum, not allowing common areas to become cluttered with personal belongings, not monopolizing shared laundry facilities etc.)

What are the free method of background check on tenant ?

There are two very easy ways to do a free background check.The easiest way is to charge an application fee that’s equal to the price of a background check, plus your administrative costs, at which point the prospective tenant is paying for it, not you. To you it’s free.

The second easiest way is to itemize on your form 1040, which you are probably doing anyway, since renting out a property is a business, and you have to file estimated quarterly tax anyway, and that makes things complicated enough to itemize.

Then you deduct the cost of the background check you paid for, out of your taxes, as a business expense, and therefore the government is paying for it. To you  it’s free.

If you aren’t a landlord, and you’re not running a company, and there’s no application fee Sorry; you’re probably not legally running the check in the first place .

What questions should I ask tenants while screening tenants?

Below are the few important tenant screening questioners.

Possible Questions
1What is your name?
2Where do you come from?
3Where do you employed?
4What is the rough estimate of your salary? or your income 3X of rent?
5Why do you want to move-in here?
6When will you move-in?
7How many people will live with you? or what is your family size?
8What date would you like to move-in?
9Do you currently rent and if so where?
10How long have you lived in your current
11why are you moving-out from current house?
12Have you given notice to your current house owner?
13How many living with you smoke?
14How many parking space would you require if you rent here?
15Do you own pet(s)? If so how many?
16Will you provide your identification proofs and reference letter to run background check?
17Would you able to pay the rent
+maintenance cost + security deposit (refundable )
18Would you able to pay the annual increment of 5%-10% of rent?
19Are you willing to sign a rental agreement of at least 6-11 months lock-in period?
201s the rent paid by you or your company?
21Is TDS or any taxation applicable to house owner?
22What is the mode of rent payment? ( Online, Credit Card , cheque, DD )
23Do you have any questions for me about the process?
24Get signed consent of tenant
25Credit checks on tenant
26Check previous Eviction History
27Check previous Criminal record
28Check drug , alcohol and smoking addiction
29Check Government watch list status
30Decided who pay will for the background check
31Consulting a Property lawyer

However, rent laws ussually vary from state to state so you better consult local lawyer before finalising anything.

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