Every landlord should screen potential tenants but how far are you allowed to go? In this guide, we'll explore the different types of tenant screening methods you can use, what information you're legally entitled to obtain, and provide tips on how to minimize risk when renting your property.
If you have a property for rent in Fort Lauderdale, keep reading to learn more about how to screen your tenants.
The Tenant Screening Process
When it comes to tenant screening, there are a few key things you should keep in mind. First, you want to make sure that you're using a fair and consistent screening process for all applicants. This means you can't just choose to run a credit check on someone because you don't like their appearance.
You'll also want to make sure that you're fully compliant with the law. This includes the Fair Credit Reporting Act (FCRA), which governs how consumer reports can be used, as well as any state or local laws that may apply.
Finally, you'll want to consider what type of information you're looking for and what's most important to you in a tenant. This may include their credit score, rental history, employment history, or something else entirely.
Types of Tenant Screening Methods
There are a few different types of tenant screening methods you can use. Each has its own advantages and disadvantages.
Credit Checks
A credit check is one of the most common types of tenant screening. It can give you a good idea of someone's financial history and whether they're likely to pay their rent on time.
However, credit checks can also be expensive and time-consuming. And, if you're not careful, they can also violate the law.
Rental History
Checking someone's rental history is another common way to screen tenants. This can give you an idea of whether they've been evicted in the past or if they have a history of late rent payments.
Employment History
Checking someone's employment history is another way to screen tenants. This can give you an idea of their income stability and their ability to pay their rent.
Criminal Background Checks
A criminal background check is another type of tenant screening. This can give you an idea of whether the person has a history of violence, theft, or other crimes.
Using a Tenant Screening Service
To minimize your risk when screening tenants, the number one thing you should do is use a reputable tenant screening service. They are experienced in compliance and will help to ensure that you're getting the most accurate and up-to-date information possible.
They'll also be aware of the laws to make sure you're not violating any rules.
When using a tenant screening service, there are a few things you should keep in mind. First, make sure you understand what type of information they'll be collecting and how they'll be using it. Make sure you're comfortable with this before giving them your permission to proceed.
Second, make sure you understand the cost. Tenant screening services can be expensive, so you'll want to make sure you're getting what you're paying for.
Finally, make sure you understand the turnaround time. You don't want to be left in the dark when it comes to making a decision about a potential tenant.
Rely on Your Property Management Service
If you're not sure about how to screen your tenants or what's involved in the process, you can always rely on your property management service. They'll be able to help you through the entire process and make sure you're getting the most accurate and up-to-date information possible.
At Home River Group, we understand the tenant screening process and can help you navigate the laws and regulations. We'll also work with you to create a custom screening package that fits your needs and budget. Contact us today and let us advise you on how we can help.
