You don't want to rent out your Putnam property to just anyone. The wrong tenant can cause costly property damage and lead to other headaches. That's why rental risk mitigation efforts are critical before offering a lease agreement.
Read on to learn about useful tenant background check tools for Putnam landlords!
Do a Credit Check for Renters
Credit checks should be an essential part of tenant screening. These checks provide a comprehensive look at an applicant's financial history.
Credit reports can help determine whether the applicant will be able to make rent payments reliably. You'll want to run a credit check to reveal:
- Credit history
- Payment defaults
- Debt management
Applicants with significant debt or late payments present a liability. Be sure to choose tenants with a positive record of fiscal responsibility!
Conduct a Tenant Background Check
The best tenant verification methods always include a background check. You'll have a better chance of smoother lease enforcement measures if an applicant passes a background check. Background checks can cover items like:
- A tenant's criminal background
- An eviction history
- Illicit behavior
If you see any red flags, you can opt out of a particular applicant for your Putnam property. After all, you don't want your property to become a meeting location for criminal activity.
Verify Employment and Income
Is an applicant gainfully employed with a steady source of income? Make sure you know the facts before they sign a lease agreement in Putnam.
Verifying an applicant's income can help you gauge their budget. In general, an applicant should have a monthly income that is around three times as much as the rental payment. If their income is lower, they may not have enough money to cover rent if an emergency cost arises.
Look at Rental History
Consider asking an applicant to list previous rental experiences on their rental application. That way, you can reach out to previous property managers and ask about an applicant's:
- Track record of on-time rent payments
- Level of care for the property
- General behavior as a tenant
You'll be able to gain a better sense of a potential tenant's likelihood to behave respectfully. If a former property manager mentions any issues, you may want to pass on the application.
Keep It Consistent
Ultimately, you want to use tenant verification methods that are consistent from one applicant to the next. That way, you can avoid situations where it appears you're showing favoritism toward particular applicants in Putnam. Create an application that uses the same questions and gathers the same information for each person.
You'll need to provide written verification for applicants whose applications are denied. For instance, a prospective tenant may not have enough income for ongoing rent payments. Whatever the circumstances are, be clear and thorough if you deny someone tenancy.
Use These Tenant Screening Tools
Tenant background check tools can help ensure you're getting qualified and quality individuals on your property. Use background and credit checks to screen for financial or criminal problems. And verify employment and rental history to confirm you're selecting a responsible tenant.
At PMI Putnam, we bring accounting and real estate expertise to the property management industry. Trust us to help you with anything from tenant screening to marketing. Contact us today to learn more!
