Philosopher and poet George Santaya said those who don't learn from the past are doomed to repeat it.
That's why a tenant background check is so important. It lets you know what past behaviors might make a tenant dangerous or delinquent so they don't repeat it on your property.
Read on to learn how to spot red flags during a tenant background check.
Talk to References
Steer clear of tenants without references. Avoid those that only provide lists of family members or friends as well.
Look for past landlords or employers. Verify their identity and ask about the tenant's past behavior.
Check their Criminal Record
Over 80 million American adults or 33% of the population have a criminal record. This may be one of the most common red flags of all.
It's also important to keep yourself from running up any legal red flags. This requires knowing all the rules about how to conduct a criminal background check in NJ.
You can't ask about the criminal record on the housing application without a conditional offer. The only exception is if they've been convicted of a drug or sex crime. You need to tell them if their record is part of your acceptance criteria, but you can't adopt a blanket policy where you deny everyone with a record.
Evaluate them individually. What were they incarcerated for and when? Will it make them a danger to your property or other tenants?
Do a Credit Check
A credit score is only a starting point when deciding their financial stability. A low one may be a red flag, but consider other factors such as income and employment.
The Fair Credit Reporting Act requires you to get consent to receive a copy of the tenant's credit report. Unlike criminal records, you must have a consistent policy for what credit scores you find acceptable for all applicants.
Don't accept a credit report directly from the applicant. They may provide outdated, inaccurate, or fabricated information. Do your own credit report instead, but let them know about it.
Look for Evictions
The average number of eviction cases in New Jersey last year was 8,200. Tenants who were part of these cases once are likely to get wrapped up in another one.
No landlord wants to have to deal with that. The eviction process is expensive, time-consuming, and leads to vacancies. Local New Jersey tenant screening is the best remedy.
Find out the frequency of these issues. A single event may not be a red flag, but why would you want a tenant who can't follow the rules and keeps getting kicked out?
Find a Property Manager
The easiest way to miss red flags during a tenant background check is to try to find them all yourself. Get help from a property management company instead.
They know what makes great tenants, what tricks the worst ones use, and how to stay compliant with local laws. Trust Monroe Property Management to find red flags you may miss.
Get the Best New Jersey Property Management
A tenant background check identifies red flags from delinquent or dangerous tenants. It requires contacting references, credit, criminal background checks, and help from a property manager.
PMI Turnkey NJ specializes in association management. Get in touch with us for help with a background check in Monroe, NJ today.
