The eviction process costs between $3,500 and $7,000 and can take longer than a month to complete. As a landlord in Fort Collins, you want to avoid evicting a tenant as much as possible.
It's costly, time-consuming, and bad for your investment business. To reduce the risk of leasing your rental property to a bad renter, you'll need to run a thorough tenant background check.
By following the tips below, you'll step yourself up for a more positive landlord-tenant relationship.
Tenant Screening and Rental History
One of the first things you'll want to do is verify the potential tenant's identity by using government-issued identification. You want to know that the person living in your property is who they say they are.
You should also take the time to contact previous landlords. If a potential tenant has a history of damaging property, not paying rent on time, or evictions, it may be best to continue your search.
Confirm Employment and Income
You can also ask your prospective tenants to verify their income and employment status. Having a stable income is crucial for on-time rent payments. You can request an employment verification letter that confirms the tenant has the financial means to cover the rent or request recent paystubs.
Run a Critical Background Check
Running a criminal background check is a fairly simple process. You'll want to look for convictions or criminal activities that may pose a risk to your property or other occupants or neighbors.
Tenant Check Report
Another easy step to take when you are looking for a reliable tenant is to run a credit check. This will give you insight into their financial history. Look for outstanding debts and bankruptcy. These behaviors could indicate financial responsibility.
Always Stay Compliant
Our best landlord advice is to ensure all your actions are in compliance with the law. Your potential renters have rights and you can't violate them. You'll need to familiarize yourself with local regulations to ensure you're doing everything correctly.
You should avoid discriminatory practices and treat all applicants fairly. You can't choose a tenant based on race, gender, or religion.
Hire a Professional Team
Hiring a team will be very helpful when you're doing a tenant background check. A property management professional will have processes and systems in place to make this step seamless. This will also ensure you have all the information you need about your potential tenants.
Importance of a Tenant Background Check
Your rental property is an investment and you will want to do everything in your power to keep it in good condition. This includes doing your due diligence and running a tenant background check on every potential renter.
By incorporating the tip above into your strategy, you can reduce the risk of having problematic and difficult tenants. Here at PMI Northern Colorado, we know how hard it is to find reliable renters. Which is why we've spent the last 20 years supporting investors like you.
Get in touch with us today for help finding the right tenants.
