Imagine a mortgage that pays for itself. This is possible to achieve by renting out a property you own. Florida is one of the best states to do so, as it's a popular location people move to and the average home is worth just over $407,000.
To ensure this process goes smoothly, you'll need to find the best tenants. Tenant screening is an essential responsibility, but not everyone understands how to run a background check on a tenant.
We've created a brief guide that outlines the key information you should know. Let's explore what to keep in mind.
Gather Required Information
Before moving forward, determine what information you need to collect. You have flexibility when doing so, but it's best to gather info about their rental history and credit history. It's also essential to run a criminal background check.
People with certain types of criminal history are often liabilities, and renting to them could lead to consequences like property damage. Once you know what to look for, you can move forward with the tenant screening process.
Run the Check
Running a background check often involves using a professional service to gain insight into the required information. This is the most straightforward way to handle this obligation.
However, some property owners choose a DIY approach. Much of the info that landlords need is public. For example, it's possible to search someone's criminal history by using law enforcement databases.
You can also ask your potential tenants to provide proof of their financial reliability. While running background checks on your own saves money, it'll cost more time. It's up to you to determine if it's worth it.
Review Their Information
Once you've received the required information, it's time to review it. Some landlords are more flexible than others, but there's no pressure to accommodate tenants who don't meet your needs. Consider being lenient if you're dealing with an extended vacancy, though.
Hire a Professional
Working with a professional is the most efficient way to run a tenant background check. They have the tools and resources to ensure everything goes as smoothly as possible.
Property management companies can handle this role proficiently. When searching for someone to work with, look into their past reputation.
See what others have to say about the experiences they had. You should also ask about their pricing structure.
Doing so helps avoid financial surprises you could have otherwise encountered. Do they often work with property owners like you?
If you don't fit their target demographic, it's best to look elsewhere. Weigh the pros and cons and make the appropriate decision.
Understand How to Run a Background Check on a Tenant
It's crucial to know how to run a background check on a tenant. This provides insight into whether they're a suitable candidate.
The tips in this guide will ensure you make the best decision. From here, you can maximize your rental income and minimize vacancies.
Gates Management and Realty offers premier property management that can help ease your burden as a property owner. We provide a variety of services, including comprehensive tenant screening.
Reach out to us today to learn more about how we can streamline rental property ownership.