Do you know around one million people are evicted from their apartments every year?
Troublesome renters can cause problems with their neighbors and costly evictions if they fail to pay their rent. Tenant horrific stories are all over. But many of these scenarios could have been prevented if the landlord could extensively screen rental applicants in advance.
Most landlords believe they can rely on their intuition. But good or bad feelings about a potential tenant are not always indicative of how they will act.
A comprehensive rental applicant screening process that includes a tenant background check, a credit report, and eviction history is the way to go. This is especially critical for a new landlord looking for a way to generate a reliable and sustainable passive income stream.
Continue reading this article to learn the importance of tenant screening.
Know the Financial Status of the Applicant
Real estate investment, like any other investment, there is a certain amount of return that is expected at the end of the year. Having tenants accumulating huge rent arrears reduces the amount of return per year. In some cases, Dallas landlords might be forced to evict tenants who still have rent arrears.
Receiving a full credit report can save you from tenants with a history of not paying rent. By using a credit report, there are certain warning signs to look out for.
Does the tenant have a large amount of outstanding debt? Do they have a credit card that has been charged off recently? If yes, that's a point of concern.
Protect Your Property and the Neighborhood
Before making a leasing decision, it's essential to carry out a tenant background check. A criminal background history will let you know the number of times the applicant has been convicted and for what crime.
Imagine what would happen if, by chance, you rent your property to a criminal looking for a place to lay low? That would be risking the safety of other tenants.
However, a criminal history should not always be a deal-breaker. There are minor offenses that a landlord might overlook. Do the past convictions of the applicant involve traffic offenses? Is it an old misdemeanor? If yes, that might not be a point of concern.
Avoid Future Evictions Through Tenant Screening
Evicting a tenant is always a lengthy and costly process. It's estimated that evicting a tenant might cost up to $1,500 to $2,500. Also, it might take 3-4 weeks before the eviction process is completed.
Evaluating the applicant's past eviction history can help you avoid such a scenario. Furthermore, dealing with a tenant with no history of eviction will give you peace of mind.
Make Use of Tenant Screening Services Near You
As a landlord, you might have the temptations of judging a tenant applicant just by their appearance. This might put you at the risk of dealing with costly future evictions. Rental applicant screening will save you from these problems.
Are you looking for Tenant Screening Services in Dallas? At HomeRiver Group, we got you covered. Our applicant screening process is intended to assist you in identifying the most qualified potential tenants. A dependable tenant gives you hope that your investment will yield solid returns.
Contact us today to book an appointment.