The performance of your rental property in Fort Worth can come down to one thing: tenant background checks.
If you're a first-time landlord, you might be wondering why you need to spend more time vetting your rental applicants. What's the worst that can happen if you rent out the property to anyone who's interested?
Well, there's a reason over 90% of landlords in the U.S. do some tenant screening on their rental applicants. Read on to learn why you should not skip or skimp on this important process.
Find Tenants Who Can Afford the Rental
You've set a rental price for your property, but you know that not everyone can afford it. The worst mistake you can make is to assume that anyone who shows interest in renting it can afford the rent.
You have to verify whether an applicant indeed has the financial capacity to pay the rent, and on time. This is why conducting a background check on their credit and verifying their source of income is crucial.
You probably have bills to pay, such as a mortgage. Your ability to pay these bills on time will depend on your rental collection. If you have a tenant who's defaulting on rent, your mortgage lender isn't going to listen to your excuses. Either you dip into your own pocket and pay up as you wait for the tenant to pay the rent or soon you'll be facing foreclosure.
You can avoid all of that by vetting your tenants and ensuring they're financially sound.
Protect Your Property
Wear and tear on a property is normal, and every landlord is expected to conduct routine maintenance on their assets. What's not normal, though, is deliberate damage caused by a negligent tenant.
Imagine repairing your property every other week because you have an unruly tenant who goes on a rampage and causes destruction. As much as you can evict them and use their security deposit to pay for the repairs, it's unnecessary.
Protect your property by performing background checks and finding tenants who are respectful of the property. Looking at an applicant's rental history and calling previous landlords is enough to help you find the information you're looking for.
Protect Other Tenants/Neighbors
If you own a multi-unit property or your property is in an HOA, you must protect other residents. You do this by bringing in tenants who won't violate noise regulations, keep banned pets, or behave in a way that will disturb the neighbors.
A criminal background check is especially important in this context. If someone's a sex offender, for example, you wouldn't want them to be your tenant if your other tenants have young families.
Tenant Background Checks Are Essential
Tenant background checks might seem like an inconvenience, but they're key to the success of a landlord. You're legally allowed to look into a renter's financial, criminal background, and employment background, and then accept or reject their application based on your findings.
If you're finding it to be too much work, don't fret. At Red Team Real Estate, screening tenants is just one of the many property management services we provide. In business since 2012, we've amassed the experience to give rental property owners in Fort Worth, TX, the best services.
Contact us to learn more about our services.
