Tenant screening is critical for property owners looking to turn a profit. Did you know that the eviction rate in Oklahoma City is at an all-time high? The eviction moratorium that was in effect during the Covid-19 pandemic has expired.
There has been a 138% increase in eviction filings since the moratorium ended. City residents are struggling to deal with inflation as their income does not go as far as it once did.
As a property investor, you rely on rent payments to meet your financial obligations. The good news is that we screen your applicants, including a tenant criminal background check. Continue reading to learn how to weed out poor rental applicants through a rigorous screening process.
Why Is Screening Tenants for a Rental Property Important?
Your livelihood depends on receiving prompt rent payments. If a person cannot meet the rent, you are not collecting revenue.
It takes time and effort to evict a tenant. During this time, you are not receiving any income. You also have to find a new tenant to replace them.
Tenant screening is helpful in securing high-quality residents. An applicant with a positive history is more likely to make on-time payments and follow the rental agreement rules.
What Is a Tenant Criminal Background Check?
A criminal background check is an absolute must when screening applicants. This step is crucial for keeping your community safe. It also helps reduce legal exposure if a tenant commits a repeat offense within the community.
This is essentially a review of any convictions against a rental applicant. Of course, you want to know if an applicant stole a vehicle or assaulted another person.
It also covers financial crimes that impact a tenant's ability to pay the rent. You do not want to approve an applicant with a history of defrauding the IRS or stealing from an employer.
What Else Does Tenant Screening Consist Of?
Besides criminal history, there are other things to look for when you screen a tenant. For example, you want to look at their employment history. This way, you can make sure they are gainfully employed and earn enough money to pay the rent.
Credit screenings are another valuable part of the process. This is another look at the applicant's financial history and whether they have multiple collection accounts.
It may also involve reaching back out to the applicant's previous landlord. Here, you can gather intel about the type of tenant that he or she will be. You can find out important information like whether the tenant made on-time payments or violated the rental agreement.
This all sounds like a lot of work. A good property management company can handle the screening process to relieve the burden on you.
Your Guide to Tenant Screening
The inherent value of tenant screening is clear. Your objective is to land reliable tenants that do not cause you any trouble. They are honest, pay the bill on time, and follow the rules.
Red flags during the screening process often lead to a costly eviction. This situation leaves you scrambling for new tenants and revenue. If you need help running a tenant criminal background check, contact us at PMI OKCity Local to get started with an Oklahoma City expert.
