Choosing a tenant screening agency beats browsing through a hundred online rental applications, but not all services are created equally. Asking these 10 questions ahead of time can help make the choice that’s right for you.
As a landlord, how well you screen your tenants can have a big impact on your finances. The ideal tenant pays you on time, causes no problems, and leaves the rental unit in great shape when they leave. A bad tenant can keep you up at night wondering what problems they'll cause next and leave you with a large clean up bill due to damaged property. Proper tenant screening can help you to increase the odds of each of your tenants being an ideal renter.
One of the most important things you can do as a landlord is identify the right tenants. And, a tenant background check can reduce the chance of leasing to risky tenants. Here are eight reasons not to rely on credit checks presented by prospective tenants:
Landlords and leasing agents want reliable tenants, but many of them fail to thoroughly screen potential renters. They aren't intentionally lax with their approval requirements; they're just unsure how to find quality tenants. A paper rental application may seem like a helpful tool, but unfortunately some applicants will always be dishonest. Potential renters can fake references or falsify data, whether they list their best friend as a former landlord or have their sister pretend they're gainfully employed.
As the COVID-19 pandemic continues to impact the real estate economy, renters and landlords are concerned about how the disruption is going to affect their ability to make their payments on time. Over April 20-22, CoreLogic hosted a series of 3 webinars as part of the Strategic Agility in Uncertain Times series providing insight on COVID-19’s impact on the real estate, mortgage, and insurance ecosystems. In the first webinar, we dug deep into some of the effects of COVID-19 on the rental market and received a few questions.
Amy Gromowski, a Senior Leader with CoreLogic’s Science & Analytics Center of Excellence, and Jeremy Thomason, Executive Sales Leader for CoreLogic Rental Property Solutions appeared on The Real Wealth Show podcast to discuss how COVID-19 will impact the housing market.
Over the past several years a growing U.S. economy gave way to a strong rental market, with property owners receiving more rental applications from low risk applicants. That is prospective tenants who were more likely to be able to meet their monthly rent payments on time. These low risk applicants had higher incomes, lower rent-to-income ratios, and better credit histories.
You may already know how convenient online rental applications are, but what about tenant screening services? If you think these reports are overkill, absorb these eye-opening facts and think again.
Do you really know who’s living in your home? Most landlords have already begun streamlining their search for the perfect resident by moving to an online rental application. However, without a qualification process in place, a landlord is often left hoping the details on that application are accurate. Professional tenant screening services can help remove the guesswork and give you objective evidence of who applicants are, where they’ve been, and whether they’re worthy of your trust.