The Federal Trade Commission's fine on AppFolio for inaccurate background reports has put the reliability of tenant screening data in the spotlight. Outsourcing the process may help avoid these pitfalls.
When you manage background checks on your own, important details can slip through the cracks. While you might focus mainly on financial stability, neglecting other parts of a tenant's history could lead to risky rentals.
Professional screening services in Winston-Salem, NC, delve into all aspects that assure a tenant's reliability and safety. Here's why outsourcing could be your best option.
Thorough Service
Hiring a professional service to screen your tenants can be revolutionary. These companies go the extra mile to paint a full picture of potential renters. They analyze an applicant's:
- Credit history
- Income
- Rental history
This information helps to gauge their dependability.
Their approach to credit checks is in-depth. Most of the focus is on credit scores and debt. This deep dive exposes a person's financial habits.
These experts don't stop there; they also comb through an applicant's leasing past. They look for patterns that could signal trouble down the line, such as frequent moves or previous evictions.
On top of all this, tenant screening services check public records. You'll know a tenant's legal history and any potential flags on government watchlists. These services use advanced tools and databases that individual landlords usually don't have.
Customizable Screening Packages
The added benefit of outsourcing is that you can tailor your tenant screening with flexible packages. Commercial landlords, for example, might seek more than credit checks and rental history reviews. For deeper insights, premium packages offer:
- Nationwide criminal checks
- Employment verification
- Thorough landlord reference
Premium packages are ideal for landlords with high-value rental property in a sought-after area. They also help landlords who've faced tenant issues before and want to reduce future risks.
Protection From Legal Liabilities
Performing tenant screening provides important insights about potential renters. But remember, this process has strict rules from federal and state laws to avoid discrimination. Although you can decline applicants due to poor credit, it's illegal to discriminate based on:
- Race
- Gender
- Religion
- Nationality
Without a deep understanding of fair housing laws, you could accidentally infringe upon a renter's rights. A lawsuit resulting from such an infringement can be costly.
By hiring professionals to take care of tenant screening, you can avoid such legal risks. These specialists understand fair housing laws. They'll conduct tenant screenings while maintaining fairness and equality.
Time and Money Savings
Carrying out tenant background checks takes time. Leaving your rental empty during this process means missing out on rental income.
Outsourcing offers a remedy. Property management experts can conduct these checks more quickly and accurately. Faster screenings lead to your units filling up in less time.
Wise Landlord Advice: Outsource Tenant Screening
Acquiring tenants who pay rent on time and preserve the condition of your rental property should be your top priority. Reaching this goal is easier with a thorough tenant screening process. Outsourcing it could be the best decision.
Respected companies in property management, like PMI of the Triad, offer tenant screening. For over 20 years, numerous landlords around Winston-Salem, NC, have relied on our expert management services. Contact us to streamline your background checks.
