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).
Answers to Three Important Questions about Background Checks
What can a firm expect when outsourcing candidate background checks? The following Q&A may help you decide what is right for your business.
Q.I have a small business and must carefully watch my bottom line. Why would I hire an agency rather than just use information at hand, like searching the Internet and Social Media, or speaking with references supplied by the candidate?
A. Internet and Social Media findings are just a place to start. Because it is difficult to know from what source the information originates, neither will provide the most complete picture of the candidate. Too, it is always best to hire a reputable screening agency, so you comply with federal and state ethical and legal standards.
Speaking to a candidate’s references can be an excellent way to confirm what the candidate expressed in an interview. The reference received, however, may be incomplete for several reasons. A former boss may not give a complete or honest answer about the candidate. You do not know the person providing the reference, and, the person may not have known the candidate. (Some candidates are clever and give their friend’s information knowing s/he will pose as a former boss.)
Also, the previous boss may have moved on. Or the reference will only verify the person’s employment start and end date and their salary.
Q. Why do I need to perform a background check?
A. In keeping with federal, state and local statutes, a thorough background check includes verification of past employment and can include a credit history and criminal history. These aspects help as a means of judging a candidate’s past, character and fitness as well as determining the potential risks for safety and security. For instance, an employer can tell if the candidate lied about being terminated from a past position, or avoided mentioning being charged with a DUI. Remember, as a business; you are also responsible to ensure the safety of all your employees.
Q. What else does an employment background check do?
A. It flags discrepancies in the information the candidate provided. It verifies education and certifications. It reduces risk and liability by fulfilling due diligence. It highlights a criminal or drug history. These factors give a more complete picture of the candidate.
It might sound cliché, but paying for a reputable professional agency, such as Data Screening.com, to provide the information you need on your prospective candidates gives you peace of mind about hiring. Since many businesses tend to be overwhelmed with responsibilities, laying to rest the worry about applicants seems a good ROI.
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).