What Is Tenant Screening – Why Is It Necessary?
If you are in the business of real estate, such as a property management company, real estate office or apartment building owners, you need specific and accurate information to evaluate and choose reliable, qualified tenants for rental properties.
The Process
- Tenant Pre-Screening
From the potential tenant’s initial contact about renting your property, you begin to form impressions as to whether that individual will be someone who can fulfill the lease agreement. While rental price vs. income is an obvious qualifier, pre-screening goes beneath the surface.
You can often discover a lot by allowing the prospect to lead with questions so you may learn what is important to them. For example,
- Questions about a pool or exercise area might indicate that the potential tenant values personal care – and people who value personal care, often value property care.
- Questions about average utilities or washer/dryer hook-ups may indicate a person who is careful with finances.
- Questions about social outlets in the area from daytime activities to bars and nightlife reveal their interests.
Presenting your questions is also a critical part of prescreening. Be sure to include questions such as,
- Do they currently rent, how long have they rented, and how long will they expect to live in the rental?
- Why are they moving to a new rental and how soon do they want to move into the apartment? (If moving was a sudden decision and they need to vacate their current location, it may indicate some negative issues.)
- What do they do for a living and what is a rough estimate of their annual income?
- Rental application and credit screening.
If a prospective tenant is still interested, set up a time for completing a lease application and securing a deposit. Keep an eye out for red flags as you meet the applicant. First impressions do tell you a lot – like a sloppy appearance may indicate what you can expect regarding upkeep of the apartment.
- Background Checks
When the rental application is complete, review the lease agreement, collect a deposit, and inform the potential renter you will need to run a credit report and criminal history check. Remember, it is a legal requirement to inform the prospective tenant you will be checking their credit report and for them to authorize the screening. Consider charging a nominal fee for this service, which will apply to the first rental period if the background check is clean
Rather than do all the screening and checking yourself, particularly if you have limited staff, it would be beneficial and efficient to hire a qualified, reliable agency such as Data Screening, to administer the process on your behalf.
About DataScreeening.com
Data Screening is a Certified Women’s Business Enterprise that has offered business-to-business employment and tenant screenings to human resource professionals and business owners, including staffing companies, for two decades. Among other organizations, they are members of the ASA (American Staffing Association), SHRM (Society for Human Resource Management) and the NAPBS (National Association of Professional Background Screeners).
6 Reasons for Background Check Delays
Employment screening is a crucial part of the hiring process. While an employer may want the most rapid response possible, it is wise to mitigate risk by being thorough and accurate.
On average, an employment background check takes up to five business days depending upon the nature and scope of information requested. It can take longer, however, due to a variety of reasons.
Incomplete information. One of the top causes for delay, yet it is the most easily prevented. As an employer, ensure that all the information about a candidate – full name, address, etc., including correct spellings – is accurate before submitting it to a screening agency.
Identity check. Some records are nearly instant, but others take longer depending on the type of check conducted. A social security number trace may take less time than a passport or national identification card. Some identity screenings may also include a search of a global watch list.
Drug testing. Face it – drug screenings take time. The potential candidate must get to a lab, and then you have to wait or results. On-site facilities for collecting specimens helps, but there is still a wait period.
Holidays and backlogs. Courts can be backlogged or closed for a holiday. This increases time it takes for records to be processed. A delay can also occur when a court mandates research must be conducted specified personnel. Of course, the record must be confirmed as up to date and legally reportable.
Difficulty establishing verifications. Sometimes you may have trouble contacting a former employer or educational institution. Furthermore, their response may take a while. Other times, you may need to request additional information to substantiate previous documentation.
Nonresident information. If a candidate’s background contains information that must be requested outside of the United States, expect a slower process. Organizations and institutions located in other countries may operate differently and require additional time to verify a request.
Remember, if a background check signals a glitch, as a potential employer, you are legally obligated to notify the candidate. Once notified, the candidate has the opportunity to dispute the issue.
Consider contracting a screening agency to do your background checks. They still have to deal with the above issues, but they will be dealing with them – while you have more time to do what you do best.
About DataScreeening.com
Data Screening is a Certified Women’s Business Enterprise that has offered business-to-business employment and tenant screenings to human resource professionals and business owners, including staffing companies, for two decades. Among other organizations, they are members of the ASA (American Staffing Association), SHRM (Society for Human Resource Management) and the NAPBS (National Association of Professional Background Screeners).
Protect Your Property while Subletting
As a landlord, your priority is protecting your rental property. It is the reason you have leasing agreements and tenant screenings. But what do you do when a tenant who has always paid rent on time and kept his apartment in pristine condition wants to sublet?
Subletting is not a risk-free concept – nor is it easy, but sometimes it’s the best choice. For example, if that premier tenant is leaving for an extended work assignment, but neither wants to put his/her furnishings in storage or have to find another apartment when returning. (Subletting differs from assigning, in which the tenant permanently leaves the apartment and assigns the lease responsibility to another individual.)
Protection Comes in Writing
If you agree to sublet, clarify terms and document everything.
- Ask your current tenant to share, in writing, their reasons and documentation for approving the potential sublessee.
- Even though the sublessee has earned the tenant’s approval, have them fill out your standard application and conduct your usual procedure – including credit and criminal background checks.
- Create a sublease agreement, which establishes who pays the rent and, if not included in the rent, the utilities.
- Establish who is responsible for late fees, damages, etc. In most cases, the buck should stop with the original tenant.
- Get the current tenant’s contact information and establish in writing, that you will be notified of any changes that occur while they are gone.
- Ensure that both you and the current tenant are in compliance with your local and state laws.
- Take photos of the apartment on the day the current tenant is leaving – this will establish proof of the condition of the property, as well as the furnishings, should a question arise.
Whether or not you choose to sublet, managing property includes background checks. Let Data Screening make your job easier. We have been serving businesses since 1996.
About DataScreeening.com
Data Screening is a Certified Women’s Business Enterprise that has offered business-to-business employment and tenant screenings to human resource professionals and business owners, including staffing companies, for two decades. Among other organizations, they are members of the ASA (American Staffing Association), SHRM (Society for Human Resource Management) and the NAPBS (National Association of Professional Background Screeners).