magazine

November 27, 2022 4:34 AM
logo
commercial Estate Solutions

You can be a great landlord – you know your local area and the surrounding amenities, have a great rental property, and provide excellent service. However, what if you are letting to a con artist? There might be no way to know that if you don’t verify your tenants’ identity. Before you start with your new tenant, you must identify them correctly, as it is a legal requirement to verify the identity of your tenant. Keep reading as we discuss 5 reasons to identity verify your tenants in this article.

Who is a Tenant?

A house tenant is an individual who rents a house from a landlord. The landlord is the house’s owner and handles its upkeep, while the tenant pays rent and maintains the property. In some cases, the tenant may also be responsible for utilities, such as electricity and water.

A tenant has rights under the law, including the right to occupy the premises for a specified period at a set price. Renting out a home or office space is one example of using a lease agreement.

The most common type of tenancy is the month-to-month tenancy. This means the tenant pays monthly rent and vacates when their lease expires. If the tenant does not leave before the end of their lease, they will owe back rent.

In some cases, landlords may need a security deposit from the tenant to cover damages caused during the tenancy.

The second most common form of tenancy is fixed-term tenancy. With a fixed-term tenancy, the tenant rents the property for a specific time. For example, a tenant renting a furnished apartment for six months would pay $1,200 monthly. After the fixed-term ends, the tenant usually receives a notice to move out.

Landlords can also enter into a long-term tenancy. Long-term tenancies last for more than 12 months. These types of leases are often used for commercial properties. For example, a restaurant owner could sign a long-term lease with a tenant for five years.

5 Reasons to Identity Verify Your Tenants

While there are several reasons tenants’ identity verification is essential, we have listed five here.

To Check the Criminal Background

Criminal background check is challenging, so it’s best to search for background check companies to do a perfect job for you.

Criminal background check is a crucial step in verifying your tenant’s identity. This is especially true if you are dealing with someone with little employment history. A criminal record could show a lack of work history and financial stability.

You want to know if your prospective renter has a criminal record, as you don’t want to rent to someone with a felony conviction. Depending on the type of crime, you may even want to ask about misdemeanors. For example, if the person had been arrested for domestic violence, you might want to find out if they have ever been convicted of a misdemeanor charge like assault or battery.

 

Also, you should investigate further if there is a concern for your safety due to the criminal background. Find out what crimes the person has been charged with, how old the convictions are, and whether they have completed probation.

 

To Know the Rental History

Rental history checks are another essential part of tenant screening. It helps you determine if the person has any previous rental experience. If they’ve never rented, this could mean they’re inexperienced and unfamiliar with the process.

Knowing if the person has a bad credit score is also helpful. While a low credit score isn’t necessarily a red flag, it could indicate that the person hasn’t paid bills on time.

If the person has a good credit score, you’ll be able to see if they’ve had any recent problems with their landlord.

For Safety

Tenant screening is important because it gives you peace of mind. Knowing who you’re letting into your home makes you feel safer.

It’s also beneficial to verify the person’s age. Many states require renters to be at least 18 years old, but you still want to ensure they’re over 21.

If the person is under 25, you should look into their social media accounts to see if they have any questionable posts.

To Understand the Employment History

Employment history checks help you understand your potential renter’s income level. If they haven’t worked in a while, they aren’t making enough money to afford your property.

If the person works full-time, you can get an idea of how much they earn. However, if they only work part-time, you won’t know how much they make.

If the person doesn’t have a steady source of income, it could signal a problem with their finances. They might not pay their rent on time, resulting in eviction.

To See What Other People Think About Them

You need to know what other people think about the person; this will give you insight into their character. You can find reviews online or ask friends and family members, and the information you gather from these sources will help you decide if the person is trustworthy.

Conclusion

As a landlord, we hope you understand why tenant identity verification is essential. The more thorough your tenant screening process is, the better off you’ll be. By knowing all the details about the person you’re renting to, you’ll be able to improve your chances of having a successful relationship.

Leave a Reply

Your email address will not be published. Required fields are marked *