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Knowing a potential tenant's rental history before your meeting is a proven way to determine whether or not the person will be suitable to reside on your rental property. This process is called rental verification, and it can help you establish a link between a potential tenant and his rental history.
You are missing a vital part of the tenant screening process if you do not know the person’s rental history. Checking such information will give you an idea or impression of what a potential tenant will be like. Perhaps the person has a past of paying rent late or neglecting a property. This can be a red flag and may prove useful in deciding on his rental application.
Find out more about rental verification and how it may transform your rental property business.
What is Rental Verification?
A rental verification aids landlords and property managers in verifying the rental history of their applicants instead of only getting their credit score and credit history as a credit check does.
Typically, the landlord conducts a background check along with phone call verifications. Determining rental history can be obtained through background checks, but sometimes database errors may result in inaccurate information.
The Rental Verification Process
Some landlords might be unfamiliar with what to do in the entire tenant verification process. It is vital to follow these steps to ensure you are doing it right.
Step 1: Get the Necessary Information and Consent
Getting information from the potential tenant's application is the initial part of the process. You also want to ensure to obtain authorization before calling their former landlords, in addition to having their contact details.
Since information on rental history is private, calling former landlords without the consent of your prospective tenant is inappropriate.
As long as it is legal in your state, ask your prospective tenant for this consent during the rental application process. Anyone who has not something to hide will not be hesitant to divulge such information.
Step 2: Call the Former Landlords
Next, give the listed landlords a call. Leave up to three messages if they fail to answer, urging them to call you back as soon as they can. Once you contact the landlords, ask the following from them:
- Confirmation of the person’s former occupancy in their property
- Reasons the tenant left the property
- Details about the experience of renting the property to the tenant
More details may be given by some landlords than by others. Your main objective is to confirm that your tenant did not fabricate information on their application. It can also be helpful to find out about the potential tenant’s personality.
Step 3: Confirm Details with the Applicant
Talk with the rental applicant to confirm any specifics when the landlord gives a different explanation for the tenant leaving the home or shares any other differing information with you. A former landlord may be telling lies if they were not on good terms when the tenant left the rental property, just as a potential tenant may lie on their application.
It will be up to you to choose who to believe in a situation like this. Typically, a few simple questions will reveal if the two parties were simply at odds or whether one was completely lying. However, as long as you have raised questions about the situation, you will have more facts at your disposal to assess the application's outcome.
Use a Rental History Verification Form
An applicant must sign a rental history verification form to express his permission to the landlord to conduct a background check. In this form, ask the tenant whether he will give you consent to contact his current employer and previous landlord.
Today, you can use an app with a free rental application form. This makes it easier for your rental applicants to provide information regarding their rental application.
Types of Information That Show Up on a Rental Background Check
Many potential renters are curious to know what information will appear on their background checks. The answer is that the exact information depends on the type of background check the landlord will conduct on the rental applicant.
Here are the types of information that may show up on a rental background check:
- Credit history
- Address history
- Employment background
- Public records
- Consumer statements
- Liens and collections
- Eviction records
- Aliases or former names
- Criminal history (if any)
Keep in mind that not all landlords may require too much information from the rental applicant. However, most landlords consider that the more information, the better.
Takeaway
Now you know the process of verifying a potential tenant’s rental history. Knowing the rental background of a prospective tenant can help determine whether he is suitable to live in your rental property. Be mindful of what you need to do during the rental verification process from the tips mentioned in this article.
