Skipping tenant screening can be an expensive error. Average eviction costs can hit between $3,500 and $7,000. It also risks several months of rental income.
You can incur these outrageous fees all because you didn't confirm a renter's employment or past rental history. A tenant background check helps you avoid these surprise expenses, keeping your income secure.
But there's more to it than money. Keep reading to learn why thorough tenant screenings are essential in Denver.
1. Enhancing Security and Peace
A tenant background check boosts the level of protection for your property. For example, you'll get a check on the criminal history of potential tenants. That way, you can avoid landing tenants with problematic legal pasts.
By screening your tenants, you're less likely to deal with:
- Property damage
- Illegal activity
- Altercations with law enforcement
- Neighbor conflicts
This means you'll have trust in who you rent to.
On top of keeping your rental properties safe, it safeguards your reputation as a landlord in Denver. After all, too many negative incidents can harm your standing in the community. Protect your investment and reputation by screening tenants appropriately.
A thorough background check can also show you if a potential tenant is a match for the existing neighborhood. For instance, an applicant with a history of noise complaints won't fit well in a quiet, family-friendly area.
2. Financial Stability
Tenant screening gives you a look at the potential renter's credit report and employment. These are key determinants of financial responsibility.
You can tell if a potential tenant has a history of paying their bills on time from their credit report. Past financial behaviors often predict future ones. If the credit report shows numerous missed payments, it's a red flag.
If a tenant has a steady salary, they're likely able to afford rent, utilities, and living costs. However, a tenant with frequent unplanned job changes may be unstable. This pattern of switching jobs could hint at unreliable income, which is a financial risk for landlords.
3. Discovering Important Personal Details
Verifying your tenant's identity is essential to avoid leasing to identity thieves or untruthful individuals. Confirm the person's:
- Full name
- Contact details
- References
- Social security number
- Employment details
Also, check for any frightening eviction history. If a prospective tenant has a record of evictions, it signals that they don't adhere to rental terms or property care.
Tenant background checks inform you about the people you rent your properties to. Getting to know them allows for more stable rental relationships. Having reliable individuals occupy your property means better peace of mind as a landlord.
Why Choose a Professional Tenant Background Check
Executing a tenant background check is a strategic move in property management. It protects your property, confirms financial stability, and validates tenant details. If you've been skipping these checks, consider starting now to enjoy the full benefits of being a landlord in Denver.
For help, Laureate LTD is at your service. With 40 years in the rental field, we specialize in comprehensive tenant background checks to find the finest tenants. Connect with us today.
