Resident screening or tenant screening is a process used by landlords and property management to assess the qualification of prospective tenants. The main objective of this process is to determine the tenant’s commitment to abide by the lease terms. One of the major aspects of resident screening is to check whether the prospective tenant has a previous criminal record. This is done through a certain background verification process. This works to ensure that the property is rented to qualified residents who are committed to take great care of the property and pay rent on time.
Tenant screening companies on the other hand are firms whose business is to collect information about prospective residents. It is done at the request of landlords and property managers. This will give landlords some kind of assurance that the applying tenant has the capability to pay rent promptly. This also works to ensure that prospective tenants don’t have criminal records and are not potential nuisance to the neighborhood. Some states require landlords to apply tenant screening or criminal background checks as a pre-requisite for the approval of a local renting license. This will help to ensure a peaceful and crime-free neighborhood.
Benefits of Resident Screening
1. It helps landlords avoid the possibility of insurance liability.
As a landlord or property manager, relying on an insurance certificate presented by a potential tenant may not be a good decision because these can be forged easily. The only way you can protect yourself from bad tenants is to conduct checks in order to determine the risks. A resident screening company can help to verify if your prospective resident is actually covered by insurance. This can certainly protect you from future liabilities as a result of non-existent or fake insurance coverage.
2. It minimizes the risk of income loss.
Having a problem tenant who refuses to pay rent can compel you to bring the matter to court. This is a waste of your valuable time and money. You can avoid this by pre-screening potential residents to ensure that all the occupants of your property are prompt in paying their monthly obligations. Tenant screening does not guarantee payment, but it can help to find tenants that do not cause you problems like lease defaults, midnight moves and evictions.
3. It makes you aware of your tenant’s current status.
With the help of the internet, screening reports are easily accessible. Most if not all resident screening companies operate and maintain websites that make it easy for landlords and property managers to access 24/7.
4. Tenant screening can protect you from possible fraud.
Most tenants nowadays are not too keen on providing sufficient information about themselves. This is a problem property owners and managers like the property management Shreveport are always on the lookout for. With an effective tenant screening, your risk of possible fraud is highly reduced.
5. It checks tenant names with the OFAC and government watch list.
Checking names of tenants against the Office of Foreign Assets and Control (OFAC) and government watch list is mandated by Federal law. Failure to do so can get you into trouble. With the help of a resident screening company, you will be able to avoid fines and other penalties because one of its major concerns is to ensure your compliance with legal requirements.
If you are a property owner or manager, you should seek the assistance of a trustworthy resident screening company to verify records of potential tenants. This will definitely help to give you peace of mind.
Lori is a corporate consultant whose experience and area of expertise are on fund administration, debt collection, wealth management and personnel administration. He likes to share his insights about business corporate solutions, sustainability & management, and a lot of human interest stories including health, wellness and self-improvement .