There's a lot that goes into managing rental properties. You need to ensure you don't have vacancies, keep everything well maintained, and so much more. One ball that might get dropped is tenant screening - but that can cause major problems for you in the future.
But why should you bother screening potential tenants before letting them live in your buildings?
We've got the information you need. Read on to find out why you should check a tenant's rental history in Provo, UT.
Make Sure They Can Pay
You want to ensure that any potential tenants will be able to pay their rent. A tenant screening will help you determine whether or not a tenant will be able to pay rent on time.
A positive rental history indicates a consistent and reliable payment record, reducing the risk of late or missed payments in the future.
Check For Evictions
You'll also be able to see if a tenant has previously been evicted. Past evictions signal potential risk. If a tenant has been evicted before, it raises a red flag and suggests a higher risk of them defaulting on rent or breaching lease agreements.
Evictions can be a result of financial strain or mismanagement. A check on evictions helps assess the tenant's financial responsibility and ability to meet their rental obligations.
Some insurance companies may be hesitant to provide coverage for rental properties if a tenant with a history of eviction is accepted. Checking for evictions can help maintain insurance coverage for your property.
Communication Skills
You'll gain insight into how a potential tenant communicates by conducting a background check.
Feedback from previous landlords can reveal whether the tenant took good care of the property, reported maintenance issues, and ensured timely repairs. This information is crucial in assessing how they might treat your property.
Understanding how the tenant adhered to previous lease terms and regulations in their previous rental agreements gives you a sense of their ability to comply with the rules and policies of a lease agreement.
Reducing Risk
By identifying potential red flags in a tenant's rental history, landlords can mitigate legal and financial risks associated with problematic tenants.
Tenant turnover and chaotic tenancies can negatively impact a property's value and the landlord's reputation.
Screening tenants based on their renter history helps in selecting responsible occupants who contribute positively to the property's value. That will help you maintain a positive reputation.
Stability
A tenant's rental history provides information about how long they typically stay in one place. A history of longer tenancies suggests stability and a willingness to commit to a rental property for a reasonable duration.
Analyzing a tenant's rental history for stability allows landlords to efficiently select tenants who are more likely to commit to a long-term lease. This minimizes the time and effort spent on frequent tenant turnover and re-advertising the property.
Investigate Tenant Rental History Today
There are a lot of reasons you should check a tenant's rental history before you let them sign a lease.
Do you need help screening your tenants in Provo, Utah? Look no further. PMI Made Simple can provide all the services you need. Contact us ASAP to learn more.
