Possible Consequences of Inadequate Tenant Screening

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Your property management team should be running a very tight ship when it comes to performing tenant screenings. A tenant screening consists of four parts:

  1. Obtaining Information: Collect information from various sources, including credit bureau information, previous landlord references, and public records.
  2. Validate the Information: Confirm that all information obtained is consistent and correct.
  3. Analyze the Information: Determine what type of picture the information paints of the individual.
  4. Measure Up: Compare your prospective tenant’s information against a baseline to determine if they will be accepted or declined into your property.

If these screenings are not properly completed, you run the risk of numerous tenant issues.

Nonpayment of Rent

Accepting someone into a property who does not pay their rent is one of the biggest nightmares that you can encounter as a landlord. Once you allow someone to move in, it becomes significantly more challenging to build a case against them to get them out. Fortunately, it is not likely that someone will suddenly stop paying his or her rent; this is likely a pattern of behavior that is easily sussed out in the tenant screening process through previous landlord references and credit checks.

Property Damage

Another major risk that you may face as a landlord is the potential for someone to damage your property. Mistreatment of property is likely also a pattern of behavior, so a thorough background check including previous tenant references can help you avoid this situation all together.

Neighborhood Disturbances

Tenants who cause neighborhood disturbances can be a major issue as they may ruin your reputation in the community and cause good tenants to think twice before applying to lease your properties.

Understanding the legal implications of making decisions about who to accept and reject can also be challenging. In most places, it is illegal to deny a tenant’s application based on race, gender, or religion, but financial capacity, rental history, credit history, family size, and criminal background are typically fair game.

The property management game can be risky and confusing. Having a resource on your side to help guide you through the process can be a critical success component. The Seneca Real Estate Group is happy to help you in the process. Contact Seneca by visiting them online at www.seneca-re.com or calling 312-327-2700 today.

by seneca

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