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Home sales began to rise last year as more investors bought homes! Whether you are a new investor in real estate or a seasoned one, you probably know that renting your property is one of the best ways to see a return on your investment.
However, bringing new tenants into your building can be stressful. Finding suitable candidates for your rentals means that you can feel secure about the return on your investment.
If you have low tenant retention it means that you will lose money. Here's a look at why a tenant background check is so important when you are renting your property.
Safety Reasons
One of the main reasons why you should do a background check on a potential tenant is for safety reasons. Other people are living in a building that you are renting or in the community.
As a landlord when you decide to rent a property, it is your responsibility to make sure that you are not bringing someone into a community who presents a threat.
This is why a tenant criminal background check will help you make the right decision.
The Legalities
When you decide not to rent someone a property, if they decide to question your decision it can become a legal matter. This is especially true if they feel that you have denied them based on a bias.
This could put you at risk of a discrimination lawsuit. When you have done your background check and if you feel that someone is not a suitable candidate you will then have proof as to why you came to your decision. This proof can be used should you be legally challenged.
Minimize Tenant Turnover
Tenant turnover is something you want to minimize as much as possible. When the units in your building are empty or when the home you are renting is empty you are not making money.
The more you can minimize the chances that a tenant will not be able to pay the rent, will damage the property, or leave prematurely, the better it will be for your profit margins.
The best way to ensure that you secure tenants that will pay the rent, upkeep the property, and will remain in the rental for a significant period is to do a background check.
Get Informed With a Tenant Background Check
Doing a tenant background check is something that you need to seriously consider when you are trying to rent your property. Background checks will give you a wealth of information about any candidates that you are considering.
This will ensure that you make the best decision for your property. The last thing you want is to select candidates who are not suitable for the community or your building.
You minimize the chances of this happening by doing a background check. If you would like help with managing your property and finding tenants please do not hesitate to contact us.
