If you are a landlord looking for a renter, it is best to do a thorough background check on any potential tenants before making a decision. Not only does this protect the property in question, but might also help you to keep the good tenants which you may already have, who live close by.
The first step of this screening process is to provide a written rental application. That will provide you with written proof of everything the prospective tenants declared, in case there is ever a discrepancy. In instances where only a verbal agreement is reached, you may have difficulties proving why you legally turned a tenant down. With a paper trail, you can better show a legal reason for rejecting any renters who are not a safe bet.
A second key step is to run a credit report. The credit history will tell you whether a potential tenant has a habit of paying their bills on time. If the renter has a former unpaid mortgage, or has ever been bankrupt will also be indicated in the report. This will help you identify warning signs, even if you decide to rent to a person with problems in their background.
You will also want to see how long a person has held their job, how much they earn, and how they have worked in the past. A person who does not stay long at one job, or has a low salary may not be able to make their regular rent payments.
Even though a credit report can tell you the financial history of a renter, it cannot disclose important information such as whether or not they are clean. Other issues, such as arguments with neighbors, or the tendency to tear things up are also not included in these reports. Because of this, it is important to talk to a few people who have rented to this person in the past.
Every landlord should be well aware of the U.S. Fair Housing Act, to avoid violating it. If you are not following it, a potential renter has the right to sue you. It is against the law to reject a tenant just because of their race, beliefs, and so forth. This is why you must be very careful in your reasons for refusing any renters.
A history of being destructive or not paying bills on time are the only truly good reasons to reject someone. By rejecting those people, you are protecting your property. It is easy to prove that you were afraid someone would not pay you if they have done this is their past to other landlords. That is also true of tenants with a history of destroying the property of other landlords.
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