There's one thing landlords in Lynwood, WA, have in common: they all want high-quality tenants. Such tenants pay rent on time, use the property respectfully, and don't disturb their neighbors.
Getting good tenants, however, requires a lot of effort on your end. It's why most landlords conduct a tenant background check on all prospective renters.
If you're a first-time landlord, bringing yourself up to speed on the tenant screening process is key to your success. To help you get started, we're sharing some insights into one of the most important property management tools.
Credit Checks
A person's credit history will give you a front-row seat into their financial discipline. Banks and other lenders have used credit checks for years to assess a borrower's suitability for a loan. But as a landlord, you're not a lender, and you might wonder why you'll need to look into a renter's credit record.
Knowing a renter's financial well-being can help you determine whether they'll be able to afford the rent and pay it on time. An individual who has defaulted on multiple debts or is currently servicing several credit cards should give you enough reason to think twice about their application.
Income Verification
A person could be servicing several loans but still have adequate disposable income to meet their other financial obligations. So, a credit check won't give you a complete picture of a person's financial ability.
Landlords do income verification checks to ensure the renter is indeed earning enough money to at least afford the rent. The verification can take the form of asking for paystubs and making an inquiry from the employer. If the renter is self-employed, bank statements showing their business or other sources of income would suffice.
Criminal Background Checks
Looking into a person's criminal background can be a sensitive matter because of criminal history discrimination. In Washington State, an arrest record or a criminal charge alone isn't a reason to deny a renter housing.
However, a renter with a criminal conviction can be denied housing if the landlord deems them untrustworthy or a danger to the community. While it's important to conduct a criminal background check, you must consider the nature of the crime, how long ago the crime was committed, and whether the crime has a bearing on a renter's suitability for rental housing.
Rental History
If you're dealing with a person who's not a first-time renter, you'd want to know what their previous landlords have to say about them. A renter with an eviction on their record is a red flag, but in the spirit of fairness, try to understand what caused the eviction. It's not always that a tenant's bad behavior is the cause of an eviction.
Do a Thorough Tenant Background Check
Doing a comprehensive tenant background check is the only way to increase your chances of getting the best tenants and, consequently, maximizing your rental income.
At PMI Brewder Realty, we understand that many landlords in Lynwood may not have the time or the expertise to do effective tenant verification. With our state-of-the-art technology and vast industry experience, you can count on our tenant screening service.
Contact us if you want to stay ahead of the game as a landlord.
