The Importance of Screening Tenants Before Signing a Lease

Suppose you finally get a tenant for your rental property. They appear nice. They sound good. They guarantee to pay the rent on time and take proper care of your house. You are relieved, and you hasten to sign the lease contract. You assume your job is done.

But a couple of months down the line, things begin to go awry. Rent payments are late. Then, they completely discontinue. Complaints are made by neighbors about noisy parties. When you finally visit the property to inspect, you notice damage everywhere.

Now you are in trouble. You must initiate the lengthy and expensive eviction process. You have lost thousands of dollars in rent. You have gigantic repair bills. And your property sits vacant, not earning you a penny.

All that aggravation and money loss could have been eliminated by one simple action. That action is complete tenant screening. Many landlords today save themselves from these problems by using tenant screening services in Northern Virginia.

Screening a tenant is not only about verifying their credit score. It is about taking the time to do your research to locate a person who is going to be responsible and reliable. It is about defending your investment and your sanity.

Let's discuss why this is so crucial and what you need to do.

Why Skipping Screening is a Big Risk

It's easy to assume that screening a tenant's background is too much trouble. Perhaps you are pressed for time to find someone so that you can begin collecting rent. But selecting the wrong tenant costs much more than having your property lie vacant for a few extra weeks.

A rotten tenant can be very expensive. You can lose money from non-payment of rent. You can pay thousands in repairs for any damage they may have done. You can lose even more money with the property unoccupied while they are gone. There are also attorney's fees if you need to take them to court to remove them.

Taking a bit of time and money up front can save you a huge financial headache down the line.

What Does a Good Screening Process Look Like?

A good screening process is assembling a puzzle. You examine all the various pieces to get the whole picture of who this individual is. You do not use just one thing.

Here are the most important pieces you need to examine.

1. Rental History

This is the best way to forecast future action. Interview their past landlords. Don't speak only to their present landlord. A present landlord may give a good endorsement just to have a problem tenant vacate the premises. Interview a former landlord.

Ask simple questions. Did the tenant pay rent on time? Did they take good care of the property? Did they cause any problems for the neighbors? Why did they move out? The answers to these questions will tell you a lot.

2. Credit Report Check

A credit report gives you a snapshot of a person's financial responsibility. You are not looking for a perfect score. You are looking for patterns.

Do they have a history of paying bills on time? Do they owe much debt? Are there any prior evictions or outstanding rents reported? A person who is frugal about their finances is more likely to be thrifty about their property and pay rent promptly.

3. Criminal Background Check

This is regarding safety. You want to know whether your prospective tenant has a criminal record. This is crucial for the protection of your property, neighbors, and society.

Look for the serious ones. A speeding ticket decades ago is not significant. But theft, violence, or drug crime is an indication of major concern.

4. Income Verification

You need to know that the tenant can actually afford the rent. A good rule of thumb is that their monthly income should be at least three times the monthly rent.

Ask for proof of income. This can be recent pay stubs, an employment letter, or even bank statements. This step ensures that the rent payment is not a huge burden on them every month.

Making It Fair and Legal

It is extremely crucial to treat all applicants equally. You need to comply with all fair housing regulations. These regulations are in place to avoid discrimination.

This simply means that you need to screen all applicants the same and by the same standards. You cannot treat one person differently from another. It keeps you out of legal trouble and also keeps you from doing something that might not be fair.

When to Call the Experts

All of this screening yourself can be time-consuming. You need to know the laws. You need to understand how to interpret a credit report. You need to locate former landlords.

This is where you get help from a pro. Northern Virginia has some outstanding tenant screening services that will do all of this for you. They are pros at it. They have learned how to get the information you want quickly and accurately. They have also learned all the local and federal regulations so that you can have confidence in the process being done fairly and correctly.

It provides you with peace of mind. You're aware that the choice you are making is founded upon tangible facts, rather than a good gut feeling.

It's All About Peace of Mind

Ultimately, screening tenants is not about being suspicious. It is about being intelligent. It is about doing something for the investment that you spent so much time building.

Having a quality tenant in your property ensures that you will sleep peacefully at night. You will not be holding out for a late rent payment or an unpleasant phone call from a neighbor. You will receive a consistent income and a property that is being maintained.

Spending the time to conduct an effective screening is the first step you can take toward a stress-free and successful experience as a landlord. It is a simple step that pays big dividends.