As Huntsville continues its reign as the fastest-growing city in Alabama in 2024, demand for quality rental properties continues to tick upward alongside the population. As demand grows, you might find yourself with more viewing requests for a vacant property than you are used to.
If so, now is the time to change your approach to secure tenant selection. Skipping the tenant background check can be incredibly costly. You run the risk of property damage, legal liability, and time and money-consuming tenant churn if you get it wrong.
However, with professional, compliant, and smart tenant vetting procedures in place, you can find a long-term happy tenant and enjoy stable returns on your investment. With this in mind, here are our top tenant screening tips to ensure you always get it right the first time.
1. Start with the Right Information
All effective tenant vetting procedures begin with the all-important document: the rental application form. This form is where your tenant should provide you with all of the background information you need to make an informed decision. Asking the right questions is essential to ensuring you get the info you need. All rental application forms should ask the tenant to provide:
- Full name
- Social security number
- Proof of citizenship/residency
- Rental history
- Proof of income
- Employment verification
- Personal preferences
This is your starting point. Always ask a tenant to provide a copy of government-issued ID alongside their application, so you know they are who they say they are. If you wish to go the extra mile, you can contact their previous landlord to confirm they have a history of respecting the property and paying their rent on time.
2. Run a Credit Check
Too many rookie landlords neglect to run a credit check. However, this is something you cannot afford to skip.
A credit check is a legally compliant and highly reliable way for you to assess the likelihood of a tenant paying their rent on time and in full. Use an expert property management service to arrange a credit check on any tenant you are considering.
Remember, it's not just about the credit score. Any report should also alert you to potential red flags such as frequent late payments, accounts in collection, or a high debt-to-income ratio.
3. Arrange a Professional Background Check
Your final step should be to arrange for a professional-grade background check on any tenant you are considering.
An official, accredited service will enable you to do this in an effective, compliant manner. Remember, all background checks and decisions made thereafter must comply with Fair Housing Law in Alabama. This means all checks must be fair, consistent, and non-discriminatory.
You can check a tenant's criminal history, eviction history, or any outstanding legal issues to help you make your decision. Remember to consider the full picture, and not dismiss any tenants outright for a single, minor infraction.
Expert Tenant Background Check Services in Huntsville, AL
The tenant background check is essential for protecting your property, your community, and your reputation. For these reasons, you should always defer to the professionals.
At PMI North Alabama, we've got you covered. We offer fully compliant, fully outsourced tenant selection and screening. We work for you, to match your property with the best possible tenant. Give us a call to find out more.
