Landlord Tenant Screening

When you have a vacant property, it can be difficult to know what the best course of action is. Every situation is unique, so it's important to understand what your needs and goals are. There are at least two common options that you can consider to maximize the amount of revenue that you will generate from your rental property. The first option is to rent out the room at a year-long lease to maximize and secure income for the entire year. The next option is to rent out your space to vacation rental websites that specialize in providing short-term rooms to individuals or groups on vacation (such as VRBO or Airbnb). Consider some of the benefits and pitfalls for each below.

Tenants with a Year Long Lease

The first option, renting out your rooms to a tenant for a year-long lease, will help secure income over a long period of time. It can also reduce the amount of stress of needing to find a new tenant between months if a pre-existing tenant does not decide to renew their lease or rental agreement. Even if the market begins to shift, you will have the tenant's monthly rate locked in. Overall, this will be a secure option for you to consider if you prefer a more stable income.

However, if the market shifts in favor of raising prices, you will have a harder time trying to raise prices. Typically, you are only able to raise the monthly rate in between rental agreements by 10% with 30 days of notice or 60% with 60 days of notice.

When opting for a yearlong lease, you will want to verify that the tenants moving in are safe and reliable individuals that won't bring you stress or cause harm to other tenants in the building. Order a tenant screening report today to have a background check done on any tenant.

Renting Out on Vacation Rental Sites

If the location of your rental properties is near an ideal destination for travelers and vacationers, then choosing a short term and variable option may be your best bet. You might be able to charge daily rates of anywhere between $250 to $800 (or more) per night... rates that you would never attain for a long term rental. VRBO and AirBnB are two of the most popular vacation rental sites. These website have been built around the ability to provide short term rentals to people that need a place to stay for a brief period of time.

One downside is that you can run the risk of having more variability in income. Some busier months may be booked completely while others may leave you renting only a few times for the entire month. However, the upside is that you will have much more control over the rent that you're charging. If you expect a busier month, bustling with tourists, you can jump the rates up to accommodate and capitalize on the opportunity.

The other risk is that you could rent to a group of partiers who could damage your property. Unfortunately, on VRBO there is no way for you view the ratings of potential tenants (it would be great to see if other landlords had complaints about this individual in the past or if they had stayed at a bunch of other properties with no issues). VRBO also doesn't provide any protection/ reimbursement if a tenant damages your property; it's completely up to you to collect an adequate deposit. Airbnb offers a bit more protection... but there's still risk involved.

To protect against this, we highly recommend running tenant backgound check. You can assure these possible tenants that running their background check is only a "soft pull," so it won't affect their credit scores in any way.

Which Option Is Best?

As with most rent-related situations, you need to understand the situation that you're in. You will have different results based on the location of your property, the amount of other rental properties on the market and the time of year. With any kind of rental, make sure that the tenant you're bringing in is a safe candidate. Whether it's long term or short term, you can use our background check service at Tenant Background Search. Also be assured that any applicants that get screened through us won't have their score negatively impacted.

This entry was posted on February 26, 2015 at 2:15 PM and has received 7513 views. There are currently 0 comments. Print this entry.

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.

This entry was posted on January 28, 2015 at 5:09 PM and has received 5816 views. There are currently 0 comments. Print this entry.

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.

This entry was posted on January 7, 2015 at 2:08 PM and has received 6354 views. There are currently 0 comments. Print this entry.

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.

This entry was posted on October 6, 2014 at 1:02 PM and has received 4938 views. There are currently 0 comments. Print this entry.

There has never been a better time to be a landlord. With so many short sales and foreclosures on the market, there are plenty of great properties to be had at low prices. The first thing you need to do is find a quality investment property that suits your needs and your budget, but you'll need to take a few things into consideration first.

How Many Tenants Do You Want To Manage?

Do you want to be a landlord to just one tenant or do you want to be a landlord to several tenants? If it is just one tenant, you can find a single-family dwelling or a condo to purchase as your investment property. It is commonly known that condos do not appreciate as well as single-family dwellings so this is something you might want to keep in mind. With a condo you also have to pay maintenance fees monthly and you would need to add that to the monthly rental payments to cover the additional expenses. If you want to manage several tenants, you can look for a duplex or a small apartment building. If you have never been a landlord before, it is probably a good idea to start out just having one or two tenants.

Finding the Right Property

Have you heard the phrase, "location, location, location?" This is just as important for rental properties as it is for buying a new home, so thoroughly research the neighborhoods before you buy a rental property. If you wouldn't want to live there, chances are that potential tenants are not going to want to live there either.

Finding the Right Tenants

Finding the right tenants is not always an easy thing to do. You want someone who will take care of your property. You certainly don't expect them to make improvements to your property, but you absolutely don't want them to cause destruction that will bring down the value. How do you go about finding the right tenant that is going to take care of your property? You can start with a background search. There are a few different kinds of searches that can be done so you can determine if these prospective tenants are right for you. Other options include criminal records checks and credit reports. You'll also want to check the sex offender registry and check for bankruptcies, foreclosures, aliases and employment verification.

Once you know how many tenants you can handle and how you will find the best applicants, it's time to look for the investment property that meets your needs. A prepared and educated landlord can see a handsome secondary revenue stream from rental property.

This entry was posted on August 1, 2014 at 6:48 AM and has received 4560 views. There are currently 0 comments. Print this entry.

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This entry was posted on March 11, 2014 at 6:14 PM and has received 5530 views. There are currently 0 comments. Print this entry.

When you rent out your property you want to rent it to someone you can rely on for the duration of the lease. Most of the time all you really have to worry about is whether or not they are going to pay the rent on time or if your property is going to be destroyed while they stay there, but in some cases you may have more than that to worry about and you need to know how to avoid it. Fortunately, there are background check packages available that allow you to assess the entire situation so that you can avoid renting to a dangerous tenant.

Financial Status

It's easy enough for a potential tenant to declare that they have a solid rental history. Technology even makes it easy for them to print fake employment forms and offer you fake addresses to send reference requests to, but credit reports and FICO scores tell the real tale. In some cases, the FICO scores and credit report may not be the greatest, but your potential tenant may have just gone through a rough patch. Look for patterns in the report and talk to your potential tenant about what you found as necessary. You might even consider overlooking things like past medical bills as they don't necessarily apply to how the tenant would handle rent.

Criminal Records

Criminal records can be obtained as part of a tenant background check package and they can be very revealing. You can learn a lot about a person by reviewing their criminal history while still being able to keep in mind that some people had a wild streak when they are younger, but grow out of it as they age. Some things are not even an issue. For example, a tenant who has a list of speeding tickets may be an irresponsible driver, but that doesn't make him or her an irresponsible tenant. Then again, a tenant who has multiple felonies for things like criminal confinement or assault with a deadly weapon are not really the kind of person you want to rent to, no matter how good they are about paying rent. Nothing quite changes the way people see your property as crime scene tape across the door.

Serious Criminal Concerns

There are two specific areas which are going to be cause for concern and are probably the best reason to invest in a complete background check package. One is sexual misconduct and the other deals with the Patriot Act. As a landlord, all you should really have to concern yourself with when it comes to your tenants is when the rent is paid and how your property is treated. However, when it comes to offenses concerning sexual misconduct or the Patriot Act, you don't really want your name involved at all. Yes, there may be instances where your renter is actually the victim, such as sexual misconduct that occurs when the other party lies about their age, but your best bet is to avoid the situation altogether because your name is at stake. When it comes to the Patriot Act, new laws mean that you really don't want your name associated with any violations in this arena because you could eventually become the target for future scrutiny and even if you had the best intentions in mind, you just don't want that kind of attention to affect your reputation. Use background checks to protect yourself and your company from potential issues with problem tenants down the road.

This entry was posted on February 17, 2014 at 5:39 PM and has received 6840 views. There are currently 1 comments. Print this entry.

Everyone wants to avoid the situation in which a tenant finds a loophole in your rental agreement and takes advantage of you or your property. Below are 8 guidelines that were developed by seasoned real estate investors to help make sure you've covered all the bases and are protected against any major liabilities.

1. Always run background checks on new tenants – Tenant Background Search handles tenant credit checks so you can make an informed decision about who has the ability to actually pay you rent each month.

2. Online payments are easiest – Always set up a way for your tenants to pay online, whether it's through your bank or using PayPal. Having easy options to send money make tenants much more likely to pay on time.

3. Move-In Contingency – Define clearly the financial ramifications of a tenant not moving in on the agreed upon date, as well as specific instructions on the move-out process as well.

4. Security Deposit – Make your security deposit a higher amount than the monthly rent so your tenant doesn't try to move out early saying they've already paid you for the remaining time period.

5. Move-In Checklist – Always provide a full checklist of household items and their current condition and ensure that your new tenant agrees with your assessment. Things like; there are doorstops in each of the bedrooms, there are no punctures or holes in any of the drywall and no stains or noticeable marks on any of the floors/carpeting. This will need to be re-visited when the lease ends or the tenant decides to vacate.

6. Building Maintenance – Spell out in very specific terms which party has the responsibility of maintaining the premises. If the tenant is responsible, dictate a list of duties or items that should be attended to and at what frequency. Also include a clause that states that if the tenant is unwilling or unable to continue these duties, you will take over for a specified fee that will be added onto the monthly rent.

7. Visit Your Properties – If you cannot personally check in on your property once every couple of months you should find someone who can do it on your behalf. You don't want any surprises at the end of the lease when you are trying to find new tenants.

8. Decorations – Make specific instructions for what you will and will not tolerate in terms of interior decorating. Any major projects like hanging flat screen televisions or excessively large pictures should be discussed before being undertaken.

By protecting yourself against simple misunderstandings with your current or future tenants, you put yourself in a position to create much more rewarding relationships with your tenants. You need to be diligent when it comes to your property, but a lot of headaches can be avoided by creating very clear and understandable rental guidelines.

This entry was posted on August 26, 2013 at 4:18 PM and has received 5972 views. There are currently 0 comments. Print this entry.

When the real estate market crashed and the economic slowdown hit about five years ago, realtors began scrambling for ways to get their listings sold. Face it--it was a buyers' market with so many foreclosures available at the same time. So, realtors came up with a concept called home staging which had an impressive impact on sales. It can have an impact for landlords, too.

Home staging is the act and art of presenting your property in its best light, with the mind's eye of the buyer/renter as the driving factor. This doesn't sound like something new. It used to be called "curb appeal." However, home staging is more intrusive than just a new coat of paint, hiding personal belongings in the closet, and adding a shrub to the front yard.

It entails presenting the property in such a way as to be almost a model home, or at minimum, in a way that de-emphasizes the current residents to allow potential buyers to be able to envision the home as theirs. How is this done? Well, there are many steps, depending on the current condition of the property. Here are just a few.

Cleaning is essential. There should be no greasy appliances, no scuffed walls, no dust bunnies or spider webs. Uncluttering is a must, even if it means the people currently living there must pack up some of their items and put them somewhere other than on the property. Painting is appropriate, and in fact, color is one of the prime ingredients of home staging. (There are home staging certified professionals that advise on these steps for a living.) If the property is furnished, the furniture may be re-arranged to produce intimate or cozy groupings, or it may be moved to follow a natural traffic flow dictated by the layout. Lighting is another key ingredient to make the home bright and comfortable. Front yard appeal is still much a part of the process, so cleaning, raking, removing dead shrubs, etc., is a must. According to one realtor who staged 35 homes in a little over a year, the average time the staged homes were on the market was 26 days, and they sold for 98% to 99% of the asking price. Staggering results.

With this in mind, landlords can borrow the concept, with the differing emphasis on attracting tenants rather than buyers. It will take some investment in the property for improvements to achieve the desired look or to pay for a certified home stager to get the look you want. However, if your investment results in reputable tenants and low to no vacancies, the money will be well-spent.

This entry was posted on June 21, 2013 at 3:22 PM and has received 7688 views. There are currently 1 comments. Print this entry.

Since the mid-90's, bedbug infestations have been on the rise in the United States. The little critters that were at one time mostly eradicated in our country seem to be making a comeback--and trust that no one is applauding their return. So how do bedbugs figure into how you manage your rental properties? Here are a few things to be aware of.

Generally, bedbugs have never been seen as anything more than annoying pests. Unlike some insects which act as disease-carrying vectors, like ticks and fleas, bedbugs have not been known to spread any type of illness. From a legal standpoint, this benefits landlords because it doesn't affect the concept of habitation--meaning the tenants cannot legally opt out of their lease due to health endangerment.

Here's the scary part: The Center for Disease Control (CDC) and the U.S. Environmental Protection Agency released a joint statement on April 25th of this year acknowledging that bedbug bites can lead to severe allergic reactions in some people as well as create the potential for secondary skin infections from scratching. The statement also cites increased insomnia and anxiety in those people who been exposed.

The two agencies have committed to more investigation of the health effects of bedbugs. If they do discover more detrimental health outcomes, then that may allow for tenants to break their leases, leaving you with unrented, infested properties.

Of course, the best way to deal with the problem is to prevent it from being a problem in the first place. There's much speculation about why they are being reintroduced into our environment at such a fast rate, including more international travel which equates to more exposure. However, another speculation points to how properties are treated with pesticides.

In the past, general treatments were done by exterminators for the whole property, be it a hotel room, your own home, or your rental properties. Now, some insecticides have become so specialized, that they target specific pests like ants or roaches. In addition, the scope of spraying has gone from the whole property coverage to spot treatments. So, if the exterminator is only treating for certain insects in certain places, you can see how the bedbugs can get around those isolated barriers and find a place where they can multiply and thrive.

To compound the problem, some bedbugs have already developed a tolerance for the chemicals used to eradicate them. The CDC and EPA discuss the need for a multi-pronged treatment plan to address the problem.

If you don't have an exterminator you're working with, you might want to get one fast. If you do have someone on contract, you might be well-served to contact the firm and consult about ways and treatments to prevent the bedbugs from even getting a foothold on your property.

Bedbugs are not good tenants, and you do not want them to move into your property. However, by staying informed and by using your resources, you can stay ahead of these freeloaders before they take up residence.

About Tenant Background Search

Tenant Background Search provides tenant screening tools for landlords. Quickly and efficiently run a background and credit check on potential tenants to ensure that you only rent to those who are responsible and will pay their rent on time. View our different packages here.

This entry was posted on May 7, 2013 at 3:42 PM and has received 5930 views. There are currently 0 comments. Print this entry.