If you manage properties, then you are accustomed to performing a background check before renting to new residents. What you may not realize is that the type of tenant screening service you use makes a big difference. There are many background services out there; however, some of these services may not provide all the detailed background information necessary in order to sufficiently screen applicants on behalf of your clients.
To make the best rental decisions, you should use a comprehensive background and verification service.
The importance of background checks
Rental real estate can be an exciting and profitable business, provided your clients can find the right tenants. Unfortunately, there are potential residents out there who, if not properly screened, may miss rent payments, damage property or cause any number of legal headaches.
A tenant screening service looks into applicants’ records to check their credit history, see if they’ve run into problems with other properties or landlords, verify their employment and income, and check for any criminal record information — all of which a landlord should know about before signing a lease.
Extra features in a comprehensive tenant check
While any type of background check is better than nothing at all, many services available overlook large amounts of important information. For example, some credit checks only look at the records from one of the three major credit reporting agencies, or a criminal background service might only look at local databases, overlooking charges from other states in the process.
Comparatively, a comprehensive service, such as Equifax Resident Screening, leaves no stone unturned. This program assembles and provides you with all available credit, rental history, employment verification and criminal record information from across the country. Your clients will feel a lot more confident renting to someone who passes this investigation.
Comprehensive tenant screening pays for itself
Problems with residents can be costly to deal with. Consider the expense of a few months’ worth of missed rent, legal fees for an eviction or potentially expensive property damage — that’s easily thousands of dollars and hours of wasted time. If a discount service misses key information that leads to this nightmare scenario, is it really such a bargain after all?
A comprehensive tenant screening service may be a bit more expensive but, provided the benefit of additional assurance, it is certainly money well spent. If this helps your client avoid even one bad tenant, this extra investment pays for itself many times over. By working with a complete tenant screening and verification service, you and your clients can avoid potential headaches.