Property Management Blog

Why Are Tenant Background Checks So Important?

Maria Napolitano - Thursday, June 22, 2023

In one study, data showed that 28% of tenant applicants had a criminal record. A surprising number of people have had at least one criminal offense in the past.

If you want to avoid issues with your rental investment and find reliable tenants for your property, you should vet applicants thoroughly. Using background checks to look for red flags will give you a better chance of spotting a winning tenant and keeping the neighborhood safe.

Below, we'll look at some of the reasons that tenant background checks are so important.

Keep the Neighborhood Safe

One of the main reasons that you need to run tenant background checks is that it can help to keep your rental property safe.

In addition to potentially causing property damage, renting a unit to someone who has a criminal history could lead to safety problems. It may affect neighbors or other tenants that you have.

It's important to review a criminal history and to look at the details to determine whether they pose a threat to the community or not. If you fail to do so, you could be held accountable by other tenants and neighbors and may even suffer legal action.

Reduce Your Liability

Tenant screening can also protect you from liability.

Based on the Fair Housing Act, you're unable to deny a rental applicant and discriminate based on details such as familial status, sex, religion, color, race, disability, and national origin.

If you fail to run a background check and deny an application, it's possible that you could be accused of discrimination.

If there's a valid reason for refusing to rent to someone, it will likely come up during the background check. You'll be less likely to be accused of being discriminatory if your denial is based on relevant information in a criminal background check.

Minimize Tenant Turnover

It can be tough finding tenants who are willing to stay for a long time. When you or a property management company perform a background check on a tenant, you'll be able to discover more about their behavior and their potential for being a great renter.

When you vet potential tenants well enough, you can identify who will be likely to rent your home for a longer period of time. This can help you avoid turnover. You'll also save money and effort on marketing the property and filling vacancies.

Prevent Missed Payments

Screening a tenant well will also help you avoid risky renters who won't pay their rent on time or will become problematic in some way.

By learning more about a potential tenant's rental history and past evictions, you'll get some insight into whether they'll be likely to make payments on time or not. This can help you avoid headaches and find a renter that will do a good job of staying on top of payments.

Recognizing the Importance of Tenant Background Checks

If you want to have a smoother time as a landlord, you should make sure to run tenant background checks. Running background checks can help you avoid dangerous and problematic tenants while also minimizing tenant turnover.

Need help with screening tenants and filling vacancies in Kissimmee, FL? Contact us today to learn more about what we can do for you.