Back HomeHow to conduct effective tenant background checks
Screening potential tenants thoroughly is crucial when managing a rental property.You’ll want to verify their financial stability and check for any criminal or eviction history. That said, you’ll need a comprehensive approach to ensure you’re choosing reliable, responsible tenants who will meet their obligations while keeping your property and community safe.
To learn more about how to run a background check on tenants, here’s a step-by-step guide.
- OBTAIN WRITTEN CONSENT
Getting written permission from your prospective tenant is not just good practice but is also the law. Be upfront about what you’ll be checking and let applicants know they may dispute any inaccuracies they find in the report. Keep copies of all consent forms and correspondence for your records, as this documentation protects both you and the applicant throughout the process.
- COLLECT NECESSARY INFORMATION
Get all the basics: full name, birth date, social security number, address history, and employment details. Don’t forget to ask for both personal and professional references. The more accurate this initial information is, the more reliable your results will be. A standardized application form helps to ensure you gather all essential details consistently from every applicant.
- SELECT A BACKGROUND CHECK SERVICE
Pick a screening provider who follows Fair Credit Reporting Act (FCRA) guidelines. Think about what matters most to you: cost, thoroughness, turnaround time, or customer support? Many services offer tiered packages, so consider which level of screening makes sense for your property and local market.
- INITIATE THE BACKGROUND CHECK
Once you have the tenant’s authorization, submit their information to your chosen service. Just make sure your process follows local regulations, particularly regarding application fees and timing, as requirements may vary by location.
- REVIEW THE RESULTS
Take time to carefully assess every aspect of the report. Look at their financial standing, credit history, rental background, employment status, and any criminal records. Following up with previous landlords and employers may provide valuable insights. Watch for any patterns or red flags that might indicate potential issues.
- RENDER A DECISION
Use all this information to make an unbiased choice. Stay consistent with your standards across applications and follow all relevant laws. If you need to decline someone, make sure you communicate this properly. Document your reasoning and keep records of the factors that influenced your final decision.
UNDERSTANDING LEGAL REQUIREMENTS
Background checks are valuable tools that require careful attention to legal obligations. The Fair Housing Act prohibits discrimination based on race, color, religion, gender, sexual orientation, familial status, or national origin. Because of this, make sure that your evaluations focus solely on factors that determine tenant reliability and ability to fulfill lease obligations.
In addition, while federal protection applies nationwide, state regulations vary significantly. Texas, for example, allows landlords to set application fees without limits but requires written disclosure of tenant selection criteria and a signed acknowledgment from applicants.
BHHS CALIBER REALTY: THE ANSWER TO YOUR PROPERTY MANAGEMENT REQUIREMENTS IN COLLEGE STATION
Success in tenant screening depends on maintaining a balanced approach that combines thorough evaluation with legal compliance. This systematic process helps ensure both the protection of your property interests and fair treatment of all applicants. Regularly review and update your screening procedures to help maintain effectiveness and compliance with evolving regulations.
For an even more seamless and comprehensive management of your property, don’t hesitate to give Berkshire Hathaway HomeServices (BHHS) Caliber Realty a call.
With six decades of experience in both the Texas property management and home market scenes, the team is dedicated to helping experienced and inexperienced landlords manage the financial and day-to-day aspects of their rental properties in the Bryan-College Station area and the greater Brazos Valley.
Apart from providing tips on how to check tenant background, the team also has a comprehensive list of property management services:
- Tenant background checks
- Efficient and timely rental collections
- Determination of rental rates
- Realistic determination of an operating budget
- Provide detailed monthly cash flow statements
- Direct deposit monthly owner check into the local bank
- Coordination and supervision of property maintenance
- Utilizing qualified vendors with high skill levels at competitive prices
- Reconciliation and payment of expenses
- Proactive pursuit of delinquencies
Rest assured that under BHHS Caliber Realty’s care, you will continue to enjoy – and gain high yields from – your rental for many years to come.
Call the team today at 979.694.8844 or send an email to schedule a personal consultation.
