How Landlords Keep Great Tenants

The first and most important step to finding a responsible individual to rent your property is to obtain a tenant background check on your applicant. A written document perfectly outlining an individual's credit history, criminal history, eviction history, and rental history is the only way to guarantee that you are choosing someone suitable to maintain your property and honor their rental agreement.

In today's society, it can be difficult to find such tenants and, unfortunately, proof of reliability needs to be on paper. That is why it is essential to also perform tenant screening on the potential tenant. If you are fortunate to find a tenant who has good credit and a history of following rental agreements, then it is best to make every effort to keep that tenant. Keeping a tenant is easier than you may think! Here are some tips on how landlords keep great tenants around.


Tip #1: Maintain the Home
Many tenants choose to rent property instead of purchasing a home of their own so that they are not responsible for maintenance or replacement of things that break. Inevitably, something will need to be maintained, fixed, or replaced during a lease. If it is your responsibility as the landlord to fix anything within the home, and to do so quickly and efficiently. If you want a good tenant to stay, take their requests seriously and have the work done at the same pace that you would want it done if you were residing in that home. By showing that you care about your tenant's needs and the quality of the property, your tenants are much more likely to sign a new lease at the end of their current rental term.


Tip #2: Consider Keeping Rent Costs the Same
If you have a tenant that stays through their lease and follows all lease agreements, offer them a new lease at the same cost. Raising rent costs encourages tenants to look elsewhere, but offering the same rate as before encourages them to stay with you. A few months before your tenant's rental terms expires, offer the tenant a new lease at the same rate.


Tip #3: Offer Cash Back for a Longer Lease Term
As many landlords know, there will be times that your home will sit without a tenant. Ideally, you will have a new tenant lined up to move in as soon as another tenant moves out; however, this is not always the case. When you find a responsible tenant to live in your home, consider using an end-of-term bonus as an incentive to sign an extended lease. You may write in your lease agreements that upon completing a two-year lease, the tenant will receive a certain amount of cash back. Be sure to write in your lease agreement that this is not part of the deposit paid and any damages to the house will still be deducted from the deposit.

Keeping a good tenant is always more ideal than finding a new tenant, but when it does come time to find a new tenant, be sure to use Tenant Background Search to assist you. We are here to make sure that you choose someone who will care for your home the same way you do. Remember, when you find your perfect tenant, use these simple steps to keep them!

Understanding Landlord Security Deposits

One common mistake many landlords make is not learning enough about security deposits. We often think that the process goes like this: name a price suitable to cover potential damages, include the price agreement in the lease, and have the tenant sign the lease and pay the deposit. Once the tenant's lease has ended, assess damages to the property, decide what amount is needed to cover damage expenses, and refund remaining amount to the tenant. The problem in this process lies in the damage withholdings. Many states require landlords to itemize the amounts withheld and do so in a specific timeframe. In these states, any amount of money retained in poor judgment by the landlord can result in penalties against the landlord. Here are a few tips to help landlords with security deposits.


Security Deposit Tip #1:
It is common for a landlord to keep an entire security deposit when a tenant breaks their lease. A landlord feels that it is justifiable to keep the deposit since the tenant did not fulfill the lease agreement. In many cases, this is illegal. A landlord is often required to make multiple attempts at re-renting the property to a new tenant. If the landlord is successful in the attempt to find a new tenant, a pro-rated amount based on the time that has passed should be reimbursed to the tenant who broke his or her lease.


Security Deposit Tip #2:
Any landlord should consider a partially deferred security deposit. A deferred security deposit simply means that a renter is given the option to pay their security deposit in installments over an established timeframe. Typically, the deposit would be collected in three to six monthly payments of the same amount each month. A partially deferred security deposit makes most sense when you have a potential tenant with good credit that lacks the finances to pay a full deposit up front. This can also help the landlord collect a higher deposit by allowing a tenant the freedom to pay in installments.


Security Deposit Tip #3:
A landlord must understand the tenant-landlord laws specific to his or her state. These laws provide clarity pertaining to the rental and residential dwellings and the rights and obligations of the tenant and landlord. These laws will cover maintenance requirements, landlord security deposits, and occupancy and access guidelines. It is in a landlord's interest and protection to know these laws, but they are often difficult to understand. To assist a landlord in comprehending the laws, it is beneficial to find a real estate attorney that is familiar with tenant-landlord laws in your state.


Landlord Security Deposit Tip #4:
Make certain you understand the complexity of the laws pertaining to the following:

• Whether or not the tenant accumulates any interest income on security deposits preserved by the landlord
• Any limitations on amounts that can be charged as a security deposit
• Whether or not a landlord is required to keep security deposits in a trust account until funds are returned to the tenant

It is the best practice to always choose a tenant that you believe will care for your property. It reduces the hassle when your property has limited or no damages and most or all of the tenant security deposit can be returned to the tenant. By processing a tenant screening with Tenant Background Search, you will learn the history of the tenant you are choosing and will have the comfort of knowing you have chosen someone who will be responsible with your property.

The Importance of a Tenant Screening

If you are a landlord or property manager, your primary goal is to protect your investment. Having reliable and responsible tenants is crucial to your own success. Using effective tenant screening helps you find a good tenant who will pay rent consistently on time, not break their lease, and not damage the property. Tenant Background Search is a comprehensive tenant screening solution designed to help you secure your investment. A comprehensive tenant screening will give you a detailed report of the tenant's history, criminal records, credit score, eviction history, and much more. Tenant Background Search will help you lessen potential risk and future liability by giving you the information you need to make an informed decision regarding lining up responsible tenants for your rental properties.

Correct and Current Information to Help You Make the Best Decision
A tenant screening report from Tenant Background Search will provide you with current information on potential tenants. You will be able to verify their identity and credit, and search for a criminal background. By checking an applicant's credit report, you can see what their payment behavior is like. You can find out whether they have a history of on-time or late payments. You can also see the amount of debt they may have that could potentially affect their rent payment each month. Tenant Background Search allows you to identify high-risk tenants before you are faced with costly and stressful situations or evictions. You can also view employment summaries, past address history, and eviction history. The more information you can acquire, the better you can protect your investment by weeding out problem tenants.

By operating a reliable tenant screening process, you will also decrease your chances of being accused of practicing discrimination. If you are using the same fair criteria on all applicants, you are able to base your decision on facts and evidence and therefore avoid discrimination issues.

Tenant Background Search reports are fast, accurate, and affordable. By ordering one of our three tenant screening packages, you can eliminate time-consuming paperwork and procedures that will only slow down the entire application process. We make your job as a landlord or property manager so much easier by quickly getting you the information you need to easily select the right tenant.

Tenant Background Search Offers More Information
Tenant Background Search offers three tenant screening packages so that you are able to choose what best fits your needs and budget. Included in our basic Standard Tenant Screening package are nationwide criminal records, sex offender search, and OFAC/Patriot Act search. The Standard Tenant Screening is only a one-time fee of $19.95. Our Standard Plus Tenant Screening package includes everything offered in the Standard plus a credit report with Fico Score, bankruptcies, foreclosures, medical collections, employment summary, known aliases, past address history, and eviction history for judgments. The Standard Plus package provides you with so much more at only $22.95. For $29.95, you can order our Comprehensive Tenant Screening package which gives you a separate Nationwide Eviction Report in addition to all that is offered in the Standard and Standard Plus packages.

Tenant Background Search provides landlords and property managers with fast, easy and affordable tenant screenings. We are partnered with the largest and most reliable data warehousers to give you the most complete and accurate information available. Secure your investment today with the most trusted and established tenant screening solution in the industry.

Top Qualities To Look For In A New Tenant

Whether you own a single rental property or you're the manager of a large apartment complex, hopefully you understand the importance of a thorough tenant screening. Throughout the tenant screening process, there are a few key qualities that you'll wan to pay close attention to. These qualities will give you insight as to whether you have found the right tenant for your property.

1. They don't put up resistance when you mention a detailed tenant screening.

While you might not always get the comprehensive tenant screening for each person that applies to rent from you, it's important that your tenant be willing to go beyond a basic credit check that many landlords use. If you find a potential renter to be argumentative about getting a detailed tenant screening that involves a background check, then a red flag should go up. You want tenants who are honest about their past and have nothing to hide, so that you can determine whether they're worth the risk.

2. They don't mind if the landlord or manager visits the property.

In most cases, landlords will announce that they are going to be coming by at certain times, but there are other instances when they aren't able to let the tenant know ahead of time. Owning property comes with a lot of responsibility and if there is a storm that causes falling trees or power outages, or if other routine maintenance is required, visiting the property may be required. If you are interviewing a potential tenant and they don't approve of the landlord coming over, then they might be hiding something. Ask them what their concerns are, and if you aren't confident in their answers, take a second look at their tenant screening report to see if it provides an explanation.

3. They have quality references.

Let's face it – it can be easy to get your best friend to write a great reference for a rental home or apartment, even if they know that you destroyed the carpet in your last residence because you hid a cat in the bedroom. A quality tenant can provide you with real information and solid references. Past landlords, roommates who are not friends but were simply living companions for the sake of smaller bills, and co-workers who have seen the living and working quarters of the person all may have good insight as to whether or not they care for their surroundings.

4. They read and understand the lease agreement.

It can be surprising that once the tenant screening is done, the paperwork is signed and the move in day is scheduled, your new tenant is shocked to find out that they aren't allowed to paint the walls in their new place bright orange. Or they find that they can't bring their 150 pound dog with them, when the lease agreement clearly states no pets over thirty pounds. A quality tenant will have read, listened to, and understood the agreement that was set forth in the beginning. If you want to be confident that they read it, have them do it front of you, and then ask if they have any questions once they are through.

A good tenant can make a landlord's life much easier, so be sure you get your tenant screening done, you pay attention to their references, and make sure they know the rules. Once you go through this process, you're more likely to be happy with your new renter.

Four Advantages of an Online Tenant Screening Service

If you're a landlord and looking to rent out a space in your building or home, it is crucial to your peace of mind and investment to acquire a tenant screening service. There are many websites that perform basic tenant background checks, and they can provide such information as your potential renter's criminal record, driving record, employment history, and credit score. All of these factors are very important for a landlord to be aware of because you want to ensure you're renting your space to a reliable, trustworthy, and financially stable tenant. At Tenant Background Search, we perform incredibly thorough and detailed screenings of your potential tenants. There are many benefits of acquiring an online report, with these four being the biggest advantages:

1. It Provides The Fastest Results No longer do you need to wait for days or even weeks to receive the results of a tenant screening. With an online report, you can have the results in hand in a matter of minutes. In this busy world, your time is your most precious commodity and that is why choosing an online background check for potential renters is the most convenient way to go.

2. It Is All-Inclusive Online tenant screening reports are very comprehensive and employ the hundreds of official databases online. They comb through the information provided by National Records and the FBI to give you all of the information you need to know. This can include the most wanted list, national terrorist database, and the national sex offender list, as well as any other relevant information. In one easy click of a button, you will have all of this information and more!

3. It Is Easy To Understand An online tenant screening website will provide you with focused, easy to understand information, all in one place. It is also easy to use and won't require any complicated information on your part. All you need is some basic information on your potential renter, and the site will do the rest for you. You will be able to easily locate and read the information that pops up after the search.

4. It Is Trustworthy You can count on the information being provided during a tenant screening to be reliable and accurate. The information being pulled is typically younger than one month old and comes from many online databases. The reports are also 100% FCRA compliant. Information provided by an online background check comes from many different official sources that compile it together and compares records to confirm it is correct. You want to be sure you're renting to a reliable person, and that is why you need the most accurate information.

As a landlord, your rental space is often your largest investment and most valuable asset, and that is why you need to perform an online tenant screening on all of your potential renters. It is the most reliable, accurate, easy to use, and quickest way of determining if they'll make a great tenant and if you should choose to rent to them or not.

Tenant Screening: What Should Be Included

In order to prevent damage to your property or avoid a month's unpaid rent, it is crucial to get a tenant screening done to prevent any such catastrophes. A legal tenant screening report will ensure that you're renting your property to someone who has a clean background, is financially responsible, and who will treat your space respectfully. Read on for the 4 things that should always be included in a tenant screening. 1. Eviction History A tenant that has a history of evictions means that there have been serious problems with previous landlords. They either did not pay their rent on time, did not follow the landlord's rules, or inflicted damage on the property. County and federal databases contain information on evictions, although it can take a lot of time for a property owner to obtain this information on their own. That is why many choose to outsource their background checks to a tenant screening service.

2. Criminal History A tenant screening will be able to tell you whether your potential renter has been convicted of any crimes. Databases from state, federal, and county sources are combined into one convenient report. You will also have access to sex offender lists, court records, prison history, most wanted lists, and more, so that you can make the most educated decision possible. Make sure the screening includes records from the past seven years, so that you can get as much information as possible.

3. Credit History Being able to see the credit history of a potential tenant will be extremely helpful in making a smart decision towards renting out your space. A thorough credit history will give you information about the tenant in regards to financial liens, payment history, accounts in collections, debt to income ratio, FICO credit score, and more. It can be hard to acquire this information on your own or even with a basic credit history report, but a tenant screening report service will help you attain all the necessary information about credit history to make an informed decision.

4. Employment History Most landlords start their tenant screening process with a renter's application. This is a pretty standard format and will ask the tenant for personal references, as well as their rental and employment history. This is an important step because a landlord will need to know that their employment position is in fact legitimate, and that they have a strong financial standing. By reviewing their place and type of employment, you can determine whether they'll be able to realistically afford the rent each month.

Acquiring a tenant screening on a potential renter is critical to your business and well-being as a landlord. You want to make sure you are making the best decision possible and are renting your most valuable asset to a responsible, financially able, and trustworthy person. There are many ways to obtain this necessary information outlined above, but a tenant screening through a professional service is the most accurate, comprehensive, and easiest way to go.

How to Get Tenants to Pay Rent on Time

In becoming a landlord, you capture a tiny slice of the American dream. After all, real estate ownership remains one of the best investments a person can make. Still, this privilege also carries tremendous responsibilities as well. As a property owner, you're responsible for the overall upkeep of your property. One important part of this upkeep is finding the right tenants to occupy your property. You would certainly want to engage in thorough tenant screening: conduct a background check and credit check, obtain reliable references (including from former landlords), and learn about current incomes and overall financial situations of potential tenants. Although you weigh each of these considerations and then carefully select your tenants, there are bound to be times when tenants don't quite live up to the expectations that you've set. Even if you use a tenant screening service, every landlord will invariably face a tenant that doesn't pay rent on time, or at all, each month.

It's incredibly distressing as a landlord when you don't receive a tenant's rent regularly each month. You meticulously set up your lease and property rules based on the understanding that you'll be compensated monthly as agreed upon by you and your tenants. Still, for whatever reason, some tenants miss the rent due date. You might be inclined to let it go if it's a one-time occurrence. But what happens if someone consistently misses the due date month after month? Here are a few ideas on how to get your tenants to pay their rent on time.

1) Early bird discounts:

Your tenants might be more motivated to pay their rent on time if you set up an early bird discount program. Under this program, they'll receive a discount on their rent if they pay early or on time. After all, who doesn't appreciate a good discount?

2) Auto pay:

By having your tenants sign up with an electronic auto pay program for their rent, you know that you'll receive the rent money every month as expected. Plus, it helps those tenants that lose track of dates easily.

3) Prizes:

You can reward those residents who consistently pay their rent on time with prizes. You might hold a community raffle and randomly pick out the name of one of your more conscientious tenants and present them with some type of reward. While these ideas may encourage some tenants to be timely with their rent checks, they may not be sufficient for others. In that case, your lease should clearly spell out the penalties for missing the due date. These penalties generally come in the form of late fees and other miscellaneous charges. Keeping in constant communication with a tardy tenant can sometimes help the situation. You should only consider eviction as a last resort when all other options have failed.

Being a landlord can sometimes feel like riding a roller coaster. Having a tenant that doesn't pay rent on time can make this ride seem even bumpier. Still, with some creativity and tact, you can get even the most troublesome tenant to pay rent by the due date. This will not only make the relationship with your residents better, but it will also help smooth your nerves--and your wallet.

6 Factors to Determine How Much to Charge For Rent

When looking to fill vacancies at your property, there are a number of factors that need to be considered that impact how much you should charge for rent:

1. Competition The quickest way to get an average range of rent that you will be able to demand is to look at your competition in the local area. Search through the local newspaper's classifieds, on websites like Craigslist, or simply by using a search engine to look for homes to rent or apartments in your town. Once you identify the companies you're competing with, you can analyze their services, prices, and reviews. This shouldn't be the only indicator of what you can price your property at, but you can use this to get a starting point.

2. Demand The current economy can make a big difference in whether or not you'll be able to get tenants to fill vacancies. If there are not many people looking for a place to live, then charging a higher rent will not be feasible. On the other hand, if you are filling up quickly and there are still people looking for a room to rent, then it is a good time to bump up the rates.

3. Location Where your property is located can be of significant value to certain tenants. Being close to certain shops, parks, sources of entertainment, food, and city life can impact the value of your property. As a result, you have the opportunity to charge a little more than distant competitors. However, if you charge too much, a potential tenant may be willing to live further away to save money.

4. Season The seasons and the time of the year can also impact your pricing. Avoid keeping a "fixed" rate as desirability will go up for individuals or families looking to move during certain parts of the year. Even if your apartments are smaller, they can still be of value to anyone that is going through a hard financial time and needs to downsize into a smaller apartment.

5. Desirability The incentives that you or your competitors offer can be the difference between a tenant landing in a vacant home on your property or not. If your competitors are offering better incentives, like free cable or utilities, to their tenants in order to draw them in, then you may not be able to set a higher price for your apartments. An alternative is to keep the rent slightly below average and then offer paid services to your tenants to make up for the lost monthly income.

6. Test the Market The quickest way to see where your prices fall is to test the market yourself. You could begin by putting in an advertisement with a local newspaper or on Craigslist where your pricing is on par with other competitors. If you are filling open spaces quickly, then you may have set your pricing too low. If they are filling up slowly, then you will want to lower your prices instead. While there is no perfect formula to determine the exact rent that you should charge new tenants, the only way you can know is to come to a decision by considering some of the above ideas, testing the market, and readjusting throughout the year based on what works and what doesn't.

4 Benefits of Hiring a Property Management Company

If you have a rental property, you might have asked yourself a question that seems to be hard to answer for others: Should I do it myself or should I hire a property management company? There are a lot of factors to consider before making a decision. Will your income be sufficient to pay for such company while still earning? Do you have the time, knowledge, and interest to handle it yourself? Can you give your tenants the attention they need if you take full responsibility?

Regardless of if you are renting out a single-family home or multiple apartment units, your main goal is to satisfy your tenant while making your investment work for you. But how can you do both if you're also the one who manages it? Your tenant will definitely call you at the most inconvenient times with complaints, emergencies, and repairs. If you have a full-time job, you will likely struggle to get everything done in a timely manner both at work, at home, and at your property. Here at Tenant Background Search, we strongly recommend hiring a property management company to take care of your property and make sure everything is being handled properly. Here are the top four benefits of hiring a property management company instead of handling it alone.

Time is Money

Tim Ferris mentioned in his book The Four Hour Work Week that the new rich do not depend on money alone. Wealth depends on money, time, and mobility. If you are handling the maintenance, rent collections, complaints, etc., then you are working for money and your money or investment is not working for you. If you have a property management company to depend on, you can use that extra time for travel, your family, or other business, while still making a profit.

Assistance with Legal Needs

Property management companies know a lot about federal laws regarding the industry, taxes, and other legal documents and agreements you might need for your property and for your contract with your tenant. Their expertise helps to make sure every detail is in order.

Finding the Right Tenant

You don't need to be a marketing expert to get a tenant. However, finding the right tenant is an important issue to consider. You should always run a background and credit check on a potential tenant. Tenant Background Search can help you discover if he or she has any criminal records nationwide, a good moral character, and a clean renter's history from past addresses. Another important thing is to do a tenant credit check. This can be time consuming and a lot of work to do alone, but assistance from a property management company can make it much easier.

Lower Maintenance and Repair Costs with Wider Network

Your property will definitely need repairs at some point. Proper maintenance, in addition to repairs, is important to satisfy your existing tenants or to attract prospects, as well as to protect your investment property. Property management companies deal with trustworthy, licensed, and insured contractors for these types of services and more, and you will save money due to bulk orders and discounts. They also have a wider network that they can use for contingency plans. This makes the process risk-free for you and for your tenants, all the while saving you money.

Why You Should Require Your Tenants to Purchase Renter’s Insurance

Most landlords suggest renter's insurance to tenants. It's one of those things that everyone "should have," but few people actually do. In fact, only about 35% of renters have insurance, while about 96% of homeowners have it. You may be thinking that as long as you have insurance on your rental properties that you'll be covered should a situation arise. While this may be true sometimes, it really is in your best interest for your tenants to have renter's insurance. Here are some possible situations that could arise where having renter's insurance will be a huge help to you as the landlord.

Theft

If a tenant's property is broken into and they don't have renter's insurance, they will be forced to pay for everything that was stolen or damaged. They may not have the money to pay for both replacement items and rent, so you may not get paid for a while. Or even worse, the tenant could choose to move out and leave the property vacant. In addition, if you didn't provide the security measures that you promised in the lease, the tenant could hold you responsible out of frustration for the situation, and your entire business and income will be severely disrupted.

Fire or Storm Damage

Thankfully, in the case of fire or storm damage, your landlord insurance policy should pay for any repairs that need to be made to the property, and you should be reimbursed for the missed income while repairs are being done. If your tenants have renter's insurance, they will be reimbursed for temporary living costs while they wait for their home to be fixed. If a tenant has renter's insurance, they are more likely to make only temporary arrangements during repairs, and they are more likely to move back into the property once it's fixed. However, if a tenant does not have insurance and cannot afford temporary living arrangements plus replacing damaged items, they are more likely to leave your property before the repairs are complete.

Liability

In the case of one tenant disputing with another due to an injury of some sort, you are likely to become involved in the situation. Renter's insurance provides tenants with personal liability so that legal expenses and possible damages will be covered. While a tenant-tenant dispute may not directly affect you if you avoid involvement, your name or business could become associated with the issue which could hurt your reputation and income.

There are enough possible issues that could arise between landlords and tenants without the added stress of insurance problems. Save yourself the hassle, the stress, and money by simply requiring your tenants to purchase renter's insurance before they even sign a lease. It is truly in their best interest as well as your own, and if you ensure that all of your tenants are covered by insurance, you will breathe more easily should any of the above issues arise.

Previous Entries / More Entries