Skip to main content

Property Management Blog

The Importance of Conducting a Tenant Background Check

The Importance of Conducting a Tenant Background Check

Approximately 40% of landlords run a tenant background check. That's a positive statistic, but what about the other 60%?

These checks are one of the most important parts of the tenant screening process. Avoiding them is one of the biggest mistakes that landlords make during it.

Read on to learn the major reasons why you need to conduct a tenant background check. 

You'll Keep Dangerous Tenants Away

The required tenant background check criteria differ in each state, and in most cases, you can even set your own. They may include:

  • Credit checks
  • Income reports
  • Criminal history
  • Eviction history

Income and credit are important to make sure you'll get your rent on time. Looking into their criminal and eviction history makes sure you don't let a violent or dangerous tenant onto your property.

Set your requirements before you even begin to find clients. Let them know what's included and how much the check will cost them. 

You Could Be Held Liable for Their Behavior

Tenant screening is about more than who lives on your property; it's also a legal issue. The Fair Housing Act prevents you from denying tenants based on:

  • Race
  • Gender
  • National origin
  • Sexuality
  • Age
  • Mental illness 

A tenant's criminal record is not always included in this law. You are allowed to check it and deny a tenant based on it in many cases.

This makes you liable for any issues that a dangerous tenant causes. You could be sued for negligence if your tenant endangers anyone or anything else.  

Lawsuits and fines are sure to follow. The time and money that you'd lose could have been avoided with a simple check.

You'll Keep Higher-Quality Tenants

Turnover rates sit at an average of 47.5% for multifamily units. Losing occupants costs $1,00-$3,000 per unit, as much as a full month's rent. 

Losing this amount of money can make you want to let in any new tenants that apply, but it's important to check them first.  

The process makes sure you get the best tenants in the area. If they're willing to honestly answer and pay the fee for the check, they're truly interested in your property. 

These types of tenants are more likely to stay for years to come. You won't have to relist it and worry about it staying vacant.

They're also less likely to cause any issues that you need to resolve. You and any of your other tenants will feel safer dealing with them. 

You Can Get Help With the Process

A tenant background check is one of the most important parts of the screening process. It lets you know exactly who you're dealing with and whether the information on their application is correct.

It prevents expensive, time-consuming legal issues. It keeps potentially dangerous tenants away from your property and attracts the ones who are willing to stay. You and everyone else on the property will feel safer. 

Property management from Veno Properties makes the process easier. Contact us for help with tenant screening and all your other landlord duties today.