If a property management company does its job in marketing a property, soon there shall be plenty of applications to sort through and numerous potential tenants. From the list, a professional property manager will begin weeding out anyone who wouldn't make good candidates by conducting a background check. This is done to assess the likelihood that the tenant would follow through with the lease agreement and take care of the rental property well. In order to discover if a prospective tenant is a good match for the property, four questions need to be answered. By screening tenants thoroughly, landlords and property managers diminish the losses that could come from eviction or damage to the property.

The following four questions must be answered in order to thoroughly screen a tenant:

1. Is the person who is applying as a  tenant who they say they are?

To start the screening process, property managers identify and confirm the applicant's information by double-checking their government ID and verifying their social security numbers.

A tenant's ID not only confirms their identity but also provides the basis for the rest of the screening process. If their identity is fake or incorrect, any other information about them cannot be trusted as accurate.

2. Does the applicant have a history of bills in good standing?

If an applicant has a history of late or unpaid rent, they are more likely to do the same in the future. Good property owners are cautious of those with a background check that displays irresponsible behavior and difficulty paying bills on time. To confirm the financial history and verify that the tenant doesn't have a record of unpaid debts, missed rent, or eviction, property management professionals usually like to check the Credit Score, TeleCheck Verification, previous address history of the tenant, Public Records Search, and National Eviction Search.

3. Is the applicant able to afford this property?

Generally speaking, rent should not exceed one-third of a tenant's income. This ensures that the renter will be able to budget for other regular expenses and still have some leftover cash. Property managers want their tenants to have stable incomes from which they can draw rent payments. Admitting unqualified tenants raises the odds of eviction proceedings and missed rent payments. To confirm an individual's income, property managers will want to run tests such as Pre-screening Income Qualification, Income Verification,  and Employment Verification.

4. Is the applicant someone who will take good care of the property and be a considerate neighbor?

In addition to examining a tenant's financial background, property managers will also research their rental and legal history. The following sources can provide information about any potential risk the individual might pose by living in the rental property.

·        Previous Landlord Verification

·        National Criminal Search

·        National Sex Offender Search

·        International Terrorism Database Search

Hence, an experienced property manager will always insist on meeting applicants in person before entering into any lease agreement. Meeting face-to-face completes the picture of the tenant that the property manager has been compiling throughout the screening process, enables both parties to voice their concerns, and actually decreases tenant fraud since rental scam artists want to avoid physical contact with their victims.

Following the Fair Housing Guidelines is required by federal law for all property managers, which ensures that processing rental applications is done without prejudice toward an applicant's race, color, religion, sex, etc. If a property manager breaks fair housing laws, they could be sued. This risks their business and the well-being of their clients.

A property manager can save you the headache of choosing a reliable tenant, collecting rent on time, and dealing with eviction. Contact us today to get in touch with Torey Eisenman, who is a Florida-licensed real estate broker and general contractor.