According to Housing Matters, roughly 90% of landlords screen potential renters - and there are many good reasons why. All landlords want reliable tenants who will pay rent on time, observe rental rules, and use the property as if it were their own home. Comprehensive screening is the only way to separate good renters from bad renters.
However, if you're a new landlord in Phoenix, you might be wondering how to vet a tenant. Thankfully, there are tools you can use to conduct a tenant background check.
Learn more about them below.
Credit History
The general assumption is that anyone who is interested in renting your house knows they can afford it. If you work with this assumption, you might be tempted to give an applicant a pass without digging into their financial situation.
But if you've been in the industry long enough, you now know that it's not uncommon for people to rent houses they cannot afford. To avoid getting such tenants, it's crucial to check their credit record.
A person's credit score will give you insights into their financial wellness. A bad score would mean they're either in debt or have defaulted on debts in the past, both of which are red flags.
A credit report will also tell you whether the person has a good record of making payments on time. If they're often paying after the deadline, it's a sign that they could also be paying rent late.
Income Verification
A credit report will paint a clear picture of a person's financial past, but not so much about the present and near future. For this, you must look at their current income and verify the information.
If someone says they're employed and thus dependent on their salary to pay rent, ensure that they're indeed employed and earning the said salary. Ask them to get a letter from their employer confirming that information.
An employment contract might also be needed, especially if you're uncertain about the rental applicant's future income, or if they're living from paycheck to paycheck.
For self-employed people, copies of their bank statements and/or tax returns can suffice.
Criminal Background Check
In Arizona, landlords are allowed to deny housing to a person with a criminal conviction. Such tenants pose certain risks to your property and even other tenants.
When doing criminal history checks, it's advisable to be considerate of the nature of the crime and how long ago it was committed. For example, a DUI conviction might appear on someone's record, but that doesn't necessarily make them an unsuitable tenant. On the other hand, a person with a child sexual abuse conviction might not be a suitable renter as they could be a danger to children in the community.
Use These Tools for a Thorough Tenant Background Check
One of your key goals as a landlord is to maximize your rental income and protect your investment. Conducting a comprehensive tenant background check is an effective way to achieve those goals, as it's the only way to attract the best tenants.
At PMI Phoenix Metro, we understand that you might not have the experience or time to screen your rental applicants. We designed our tenant screening service to help landlords like you not to worry about vetting tenants. As part of a larger franchise that has been perfecting and changing the property management industry for over 20 years, you can count on us to deliver.
Schedule a free consultation today.
