Owning a rental property is a massive opportunity, and a huge responsibility. You can make a lot of extra income that can last you well into your retirement age, and provide for your kids when you’re gone, but you’ve also got to be smart about your decisions. You’ve probably heard some horror stories, and if you’d like to avoid becoming one, tips such as a tenant credit check will help you.
There are two components to screening a tenant that you should exercise as often as possible. The first is the landlord credit check. You should look at the applicant’s credit history to see what, if any, are the major financial problems they have faced in the past. If the potential tenant has a great deal of bankruptcies, or a history of unpaid bills that languish for months at a time, it may not be worth it to rent to this person. There’s something to be said for allowing someone a second chance, but you should be aware when you see patterns of this behavior.
A tenant screening service can also give you criminal background information. This is important because it helps you keep your neighborhood safe, without putting an undue financial burden on your as the renter. When you review a criminal background, you’re also making a more informed decision about the kind of activity you’re potentially ok with occurring at your home.
Watch the Market
Your property is only as competitive as the market will bear, so if you’re in an area with many rentals then you need to think outside the box. First, straighten out the home and make a few upgrades (such as re-facing the cabinets or updating the faucets and light fixtures. Next, look into ways you can make your home more appealing. Can you install a coin operated washer and dryer? This would help reduce costs for your tenants. Is your garage roomy? If you can afford an expansion, that could become a major selling point.
Having attorneys and tax professionals on your side is crucial to navigating this process. You need to be sure you’re following your state’s laws (especially when it comes to background checks). Attorneys can also help draft a lease for the property, and assist with enforcement if required. It’s also important to know which expenses are deductible when you own a building, as landlord costs can add up quickly.
Tenant Screening Services, LLC can provide a tenant credit check in minutes. If you need to make an informed decision on who to rent to, trust Tenant Screening Services, LLC.