GUEST POST: The Benefits of Tenant Screening

This is a blog post drafted by the American Apartment Owners Association

Although taking time to screen rental applicants thoroughly may not seem necessary, failing to do so may cost you considerable time and money later. If you just accept money from an applicant ready to put down the deposit today, it could backfire on you. If you simply approve a tenant after verifying his or her employment because you are eager to rent the property, it could prove a serious mistake. Just because your applicant has a job says nothing about that person's background or rental history. Just because a person has the deposit today gives no indication that the applicant has a good rental history and clear criminal record.

The benefits of conducting a thorough tenant screening check on every applicant far outweighs the cost associated with it. In fact, the cost of tenant screening is often passed on to rental applicants.

How to avoid costly mistakes during the tenant screening process

One common mistake occurs when the landlord presents an applicant with their own homemade rental application. Landlords often fail to ask crucial questions that typically eliminates a rental applicant. There is more to screening applicants than asking the applicant's name, employer and current address. The American Apartment Owners Association knows the importance of thorough tenant screening and provides comprehensive forms, including a free rental application form that asks the right questions.

Another mistake made by landlords is failing to get thorough information on every adult wanting to reside in the rental. Some landlords still only ask the head of household for their personal information. If other adults plan to live in the household you must also conduct comprehensive tenant screening on them as well. Prospective tenants often know that if you find negative rental history or a criminal record of other adults in the household, you will no longer consider them.

A common mistake made by landlords is to just check local criminal records to see if a rental applicant has committed any crimes. That information often includes only misdemeanor and local information and may not even be up-to-date. Criminal offenders often move frequently to avoid authorities or because they've committed crimes at a rental property. To thoroughly screen for an applicant's criminal history you need to search state and federal records. Sex offenders also move around to abscond from authorities or to avoid detection. Including a sex offender check in your comprehensive tenant screening package protects other tenants, nearby children, and provides an additional level of safety at your property.

Get more than just a tenant credit check

Landlords often mistakenly believe that a tenant credit check provides all necessary tenant screening information. A credit check for landlords only provides credit information, not criminal history or eviction history.

Proper tenant screening reports will benefit landlords in a multitude of ways. The fact that you can charge each adult, not just the primary applicant, for tenant screening services means you can recover part or all of your tenant background check fees. Conducting thorough tenant screening means the difference between renting to a qualified applicant and an unqualified applicant. It also means you can feel confident you made the right choice when you rented your property instead of worrying about whether the tenant will pay the rent. Reap the benefits of proper tenant screening and save expensive legal fees, time, and money associated with failing to screen every adult applicant properly.

Check out other things to look for during the tenant screening process by reading AAOA's article "Top 5 Reasons to Reject an Applicant."