Landlord Tenant Screening

As a landlord, you're really in the business of people, even though your "product" is essentially real estate. Due to your human interaction, you're subject to encounter absolutely any and every human event possible. From divorce to marriage, from loss of employment to lottery winners--accept the possibility that it may cross your desk someday.

Take death, for example, a very common occurrence in the business of people. What do you do if one of your tenants passes away? What are your rights and duties as a landlord? How do you reclaim your property? What do you do with theirs?

Let's look at three different settings: a natural death with survivors, a natural death without survivors, and a criminal death. (Note: If you physically find the person unresponsive on your premises, you should call law enforcement and emergency services. Normally, they will take care of the legal matter of removing the body and notifying next of kin.)

--A natural death with survivors means simply someone who passes away due to natural causes (or perhaps injuries from an accident), who leaves behind heirs. In this scenario, you as the landlord should be aware of your responsibilities for personal property and access to the property by relatives.

In most cases, you are responsible for the safety and well-being of the deceased person's personal property. It does not become yours just because the person died. It becomes the property of their estate and comes under the jurisdiction of the will's executor. However, this does not mean you can let all relatives into the property if asked. In fact, you're probably safer to restrict all access to the rental until you can find out who the legal representative is.

--A natural death without survivors means someone who dies leaving no will and no heirs. This situation is a little more complicated because there is no one to confer with regarding disposal of the personal property and no one to sign paperwork to terminate the lease. The best solution is to consult your local or state office regarding wills and estates. They're often called probate courts, but it can vary by state or municipality.

--A criminal death means your rental property has become the scene of a crime. This infringes on your rights as landlord because, based on law enforcement procedures, even you cannot enter the premises until they release the scene. After the property is released, however, you would refer above to decide how to proceed based on the existence of heirs.

It's a best practice to check with the agency that regulates landlord and tenant rights in your state to know what exact actions you must take regarding the death of one of your tenants. You may even want to consult a lawyer to make sure you're in compliance. Each state has rules as to how to terminate the lease or even to allow it to continue with a relative who assumes the lease. In some states, you must also disclose that a death has occurred on the property even it wasn't a murder scene.

Your business is people and people die, so don't be surprised. Just be prepared for it and know your rights and responsibilities under the law.

This entry was posted on January 11, 2013 at 2:30 PM and has received 6369 views. There are currently 0 comments. Print this entry.

Being a landlord has never been easy – from bad tenants to legal battles, landlords deal with all sorts of potential problems. One of the easiest ways to avoid these issues is to develop a check list that you go through for each potential tenant. Keeping this check list and following it step-by-step will help you to maintain a great relationship with your tenants, and an easier life for you.

Here are a few tips for what to include in the checklist:

Before the move in

- Check what your state and local area allows for you to charge a tenant. While most areas allow you to charge first month's rent and a security deposit, what you can charge varies by state. This may include last month's rent, a pet fee, or what's known as an application fee. These laws are subject to change, so it's important to stay up to date.

- Carefully screen your possible tenants. This is a rather important step in the process, as this can make or break an entire tenant-landlord relationship. You will want to avoid people who are known for not paying their rent, or for being kicked out of previous rental agreements. There are many ways to go about screening a tenant, but easiest is to order a report from Tenant Background Search.

- Do a walk-through of the area that will be rented out. Make note of any maintenance concerns, or other troubles that the tenant may have.

Leases and deals and papers, oh my!

- Make sure you can outline your specifications and agree on them with the tenant. While most landlords go with a very standard lease for their state and area, you may have further stipulations that need to be agreed upon. These may include specific hours for "quiet time," rules on smoking or drinking near the property, or even removal of snow and garbage from the area. You might want to include a blank area or page to write up additional agreed upon material.

- Always check the lease yourself before allowing a tenant to sign it. If you haven't updated your lease in a while, there may be new agreements or laws in place that you need to keep in mind.

The M word - Maintenance

- You will want to make sure tenants know phone numbers to call for any needed maintenance, including plumbing and electrical repair. This will stop tenants from having to contact you in case of an emergency.

- If you are personally taking on the responsibility for much of the maintenance, you need to follow through in a reasonable amount of time.

Before the move out

- If your tenant has decided to move out, make sure to get an address where they can be contacted in the future. This will solve two problems – you will have a place to forward their mail to if you receive any, and you will be able to forward the security deposit to them in a timely manner.

- Return the security deposit in a timely manner. State laws vary regarding last month's rent and security deposit. If you charge for a security deposit and last month's rent, consider keeping them in an escrow account. Usually you will have 30 days to return a security deposit.

- If you will be withholding any amount of the security deposit, be very clear about why. List every reason – this will go a long way to reducing friction or possible legal action from the tenant.

This entry was posted on December 14, 2012 at 2:22 AM and has received 6169 views. There are currently 0 comments. Print this entry.

The bad economy, stunted real estate market and rising unemployment have made it difficult for many people to achieve home ownership. Many people are opting to rent instead of buy a home. The rental market is simply exploding. Many landlords will receive a flood of applications immediately after listing a property for rent. Finding a tenant is no longer difficult; what can be a challenge is finding the right tenant.

A quality background check can help you determine whether a tenant is low risk. A background check can provide you with the information needed to minimize the risk of rental property ownership. There are many factors that must be considered when deciding whether a tenant is a good prospect. Financial and job security are key factors along with credit history. Income to debt ratio can provide an accurate picture of the applicant's financial situation. Tenantbackgroundsearch.com provides you with the tools you need in order to make a sound evaluation.

With such high demand for rental properties and tools so readily available to you that make the selection process so much easier, it truly is a great time to be a landlord.

This entry was posted on October 29, 2012 at 1:41 PM and has received 5416 views. There are currently 0 comments. Print this entry.

It may be difficult for investors to find a good, safe investment in the current economy. There is uncertainty because of economic issues in Europe and the national debt. The stock market is a huge gamble. Gold has a high price and doesn't produce any sort of dividend. Bonds have a low yield due to low interest rates. There is, however, one good area to invest in the current economic climate. Rental real estate can offer both short and long term returns. A rental property can increase in value while offering a recurring revenue stream. There are plenty of distressed properties out there and plenty of opportunity to buy low. Demand for rental housing is also higher because people feel less secure about committing to a long term mortgage (and many don't qualify). An investor can immediately enjoy a positive cash flow while building equity, which eventually can be converted to cash by selling the property.

Unfortunately, even a local market with high prices to rent and low prices to buy can still carry risks. One of the biggest threats to the value of the investment is a bad tenant. A bad tenant might not pay the rent. A tenant that doesn't pay rent or damages the property will cost you lots of money. Your investment can easily turn into a burden and an expense, rather than an income generating asset.

In order to protect against nonpayment, vandalism, eviction proceedings, unsavory characters and other issues, landlords should run a tenant background check on applicants. It is important to do a quick background and credit check on all tenants. You don't want stolen merchandise found in your house or drugs being dealt out of your house! You do not want your investment property to become a crime scene! Protect yourself with a thorough background check.

This entry was posted on September 12, 2012 at 2:57 AM and has received 6743 views. There are currently 0 comments. Print this entry.

Rental property management can be one of the best investments in the current economy. Gold and stocks are too expensive to have much potential as investments. Bonds and CDs are safe but yield very low returns. Rental properties offer the opportunity to buy low, as well as a meaningful revenue stream. This gives investors the best of both worlds. In many local markets, housing prices are still falling and rental prices are rising. This combination of trends creates an opportunity for investors to buy houses and apartments and rent them out for a positive cash flow. The numbers work out perfectly. The tenant is paying the note and the holding costs such as insurance and taxes. The investor is turning a profit each month. This can be boosted further if the investor chooses to take a depreciation write-off on the house, thereby lowering the income tax bill at the end of the year.

Unfortunately, this scenario doesn't always play out in the real world. While most tenants pay their rent on time every month, there are some tenants who aren't so reliable. If a tenant fails to pay the rent, it creates a triple whammy for the landlord. The cash flow from rental income stops, but the investor still has to pay the taxes, insurance, and mortgage. To make matter worse, the landlord might have to take collective action or begin eviction proceedings. This adds legal fees to the financial problems. In the worst case scenario, the bad tenant retaliates against the landlord by intentionally causing as much damage as possible. That adds even more bills and wastes even more time as the house or apartment needs repairs before it can be rented again. A scenario like this can wipe out a few years of profits for that particular property.

To make the worst case scenario less likely to occur, landlords can require applicants to submit to a credit check. It's much easier to avoid a bad tenant than deal with one, and a tenant credit check is one way to minimize the risks. If a tenant has a history of not paying bills on time, this is a red flag that landlords should consider before renting the property. Past behavior is a good predictor of future behavior. This is even more important if the delinquent bills were rent, or worse, if there is a history of evictions. In these cases, property investors may want to protect themselves by not signing a rental contract with that applicant. Alternatively, they may allow the applicant to rent the property but take other measures to protect themselves. This might include a higher security deposit or a higher monthly rent.

A tenant credit check is relatively cheap and can be done for less than thirty dollars. This is a very small price to pay as an insurance policy against a deadbeat tenant, which can cause losses that run several thousands of dollars.

This entry was posted on September 12, 2012 at 2:49 AM and has received 5681 views. There are currently 0 comments. Print this entry.

Good investments are difficult to find right now. It's a little too late to jump into the stock market, which is unusually high considering the anemic job market. Likewise, gold has skyrocketed over the past few years. Buying high is always a bad idea because there's little upside. Bonds have such a low rate of return that they're not worthwhile. But there is one place where it's possible to cover all of the best investment practices--buying low, investing for the long term, and investing in assets that provide value and generate revenue. That sector is real estate - an area of investment that many people might not think is the best place to put their money. With the foreclosure rate still high, there are lots of cheap properties investors can buy with little risk. Because many markets have higher rental prices, it may even be possible to find houses that can be rented for a positive cash flow. The tenant pays the note, taxes, insurance and a little extra. The investor builds equity that can be cashed in several years down the road and may even want to take a depreciation write-off on the building.

If the local market conditions are right, this can be one of the most lucrative investment strategies. Unfortunately, there is one major pitfall. A bad tenant can destroy the investment plan and cost the landlord thousands of dollars on multiple fronts. The worst case scenario is a tenant who stubbornly occupies the property without paying rent, vandalizes it and uses legal tricks to delay the eviction process for as long as possible. This can be even worse if state and local laws offer little protection for the landlord. At the end of the day, bad tenants can cost a landlord thousands of dollars.

Tenant screening is one way to minimize this risk. The key is to keep bad tenants from ever occupying the property in the first place. Fortunately for property management investors, tenant background checks are available. Before entering into a rental contract, a landlord has the opportunity to find out if the potential tenant has a history of problematic behaviors such as not paying bills, causing excessive property damage, or being evicted. Other information is available as well such as a criminal background check, which can tell a landlord whether the applicant is a possible danger to other tenants or poses a risk of bringing criminal activity to the property.

A tenant background check can range from approximately twenty dollars to forty, depending on how extensive it is. Even if such checks are run on several applicants, it's still a worthwhile expense. That little bit of money now can save thousands of dollars in the future, as well as a long of aggravation, if it keeps a bad tenant from renting the property. Click here to order a background check now.

This entry was posted on September 12, 2012 at 2:44 AM and has received 6951 views. There are currently 0 comments. Print this entry.

One of the best investments you can make right now is real estate. Many people might not think of real estate as a good place to put their money because real estate (and specifically foreclosures) was a huge contributing factor in the recent recession. Foreclosures are still occurring at a high rate and in some parts of the country prices are still falling. This makes investing in real estate seem counter intuitive; however, it might be the right move, especially in markets with low selling prices and high rental prices. Low interest rates make bonds less than ideal, and the stock market is risky. Gold is currently priced too high to have much of an upside. Real estate is the way to go, as long as investors avoid get rich quick thinking.

Successful investing often means sticking with your investments for the long haul, rather than a quick flip. In the case of real estate, the best strategy is usually to buy cheap properties and rent them for a steady income. The real estate market collapse has provided many opportunities for investors to acquire cheap houses, and depending on the local market the rent can pay the mortgage and provide a profit. Investors might also consider depreciating the building to help with taxes.

Residential property can be lucrative, but a bad tenant can ruin your business model. A particularly bad tenant can leave a house or apartment in need of thousands of dollars in repairs. Even worse, some tenants refuse to pay the rent. This forces the landlord to go through an eviction process, incurring expensive legal fees. Depending on state and local laws, this can be a very time consuming process as a bad tenant may use every procedural trick possible to drag out the dispute. Meanwhile, the tenant is occupying the property rent free and you lose money.

The best way to avoid that scenario is tenant screening. As part of the rental application, a landlord can run a tenant background check. This may include a tenant credit check to make sure the applicant doesn't have a history of delinquency or default. It may also include a criminal background check and a public records search for evictions (which would obviously be a huge red flag). There are no federal fair housing issues with such a background check because doing so judges the applicant as an individual. People with criminal records, bad credit or a bad rental history are not covered by the Fair Housing Act.

A basic tenant background check report can be completed for fewer than twenty dollars, and a more extensive one can be run for less than forty. This is a small price to pay for security when compared to the thousands of dollars that can be lost on property damage, unpaid rent and legal fees that can come with a bad tenant. A tenant background check is one of the best ways for property managers to protect their investment.

This entry was posted on September 12, 2012 at 2:33 AM and has received 6390 views. There are currently 0 comments. Print this entry.

As a landlord, it is crucially important to line up good tenants. Good, responsible tenants ensure profitability. Tenants that take care of your property and pay rent on time make your job as a property manager easy.

How exactly do you make sure that you line up responsible tenants? One major indicator is credit history. If a potential tenant has a long track record of honoring one's financial commitments in a timely manner, then it is very likely that in the future this individual will continue to honor their commitments. Checking credit history is a great way to screen potential tenants. Credit history is a much better indicator than checking a tenant's W2... for instance. There are many self employed individuals or people who don't have a really steady recurring income that still have the liquid financial resources to ensure consistent rent payment. You do not want to eliminate an individual who could be a great renter just because they can't demonstrate strong recurring monthly income in the form of a W2. Credit history is a much more reliable and efficient indicator.

Criminal history is another item that you definitely want to check. For all you know, if you don't check criminal history, you could have a drug dealer selling out of your house. It can get messy quickly for all stakeholders. If a tenant goes to jail, it becomes a huge headache for everyone involved. You do not want to rent to tenants who have a criminal history.

Tenant Background Search will help you to make truly informed decisions about who to rent to. Landlord tenant screening will save you money, time and make your job as a landlord so much easier!

This entry was posted on September 7, 2012 at 12:50 AM and has received 6067 views. There are currently 0 comments. Print this entry.