[2 Best Ways] How to Do Background Check on Tenants (2024)

Tenant Background Check

Check credit situation, criminal record, and rental history to make informed decisions about potential tenants.

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Are you a landlord or property manager looking to protect your investment and ensure that you rent to responsible and reliable tenants? You’ve come to the right place. Renting a property can be a risky venture, especially if you are not sure about the background of the prospective tenant. So in this article, you’ll learn everything about conducting a thorough background check on tenants: why is it so important,what’s covered in a tenant background check, how to run one, and which services can help.

Why should you run a tenant background check?

Performing a tenant background check is important because it can help landlords and property managers make informed decisions about whom they rent to.

By conducting a background check, landlords can verify a tenant’s rental history, employment status, and creditworthiness, among other things. This information can help landlords determine whether a tenant is likely to be responsible and able to pay rent on time.

In addition, tenant background checks can help landlords avoid renting to tenants with a history of criminal activity, which can help protect the safety of other tenants and the property.

Not conducting a background check on potential renters can result in significant costs in terms of both time and money, as well as potential dangers to you, your neighbors, and your property. These risks can be avoided by performing a thorough background check before allowing someone to rent from you.

How to perform a rental background check?

To run a background check on a potential renter, you can use a tenant screening service. These services typically gather information from public records and other sources to provide a comprehensive report on a person’s rental & credit history, criminal record, and other relevant details.

To use a tenant screening service, you’ll typically need to provide the potential renter’s name, date of birth, and social security number. It’s important to note that you must have the potential renter’s consent before running a background check.

There are various tenant screening services providers, and some may be more reliable than others. It’s important to do your research and choose a tenant screening service provider that has a good reputation and offers the features and services that you need. To save you the hassle, here we recommend 2 best tenant background check services on the market: RentRedi and SmartMove.

Option 1. RentRedi®

RentRedi is a well-known property management software that makes the process of managing rentals easier for both landlords and tenants. A rental background check with RentRedi will provide you with information about an applicant’s personal and financial history, as well as their past residences. RentRedi offers three main reports as part of a typical background check: credit, criminal, and eviction history.

• The credit report, provided by TransUnion, shows the applicant’s credit score and credit utilization, as well as their payment history and account summaries.
• The criminal history report displays any past criminal records associated with the applicant, including the nature of the crime and whether it was a felony or misdemeanor.
• The eviction report reveals whether the applicant has been evicted in the past and provides details about the incident.

As a one-stop rental service platform, RentRedi can help landlords to do a lot more aside from screening tenants, such as collecting rent online, listing properties and managing maintenance. Tenants, on the other hand, can use RentRedi to pay rent, set up automatic payments, report timely rent payments, prequalify for leases, and request maintenance services.

Comprehensive Tenant Screening
Identify high-quality tenants

√ Full Credit Report
√ Criminal Background check
√ Eviction History Report
√ Certified By TransUnion

Start Screening >>

Option 2. SmartMove®

SmartMove is a tenant screening service provided by TransUnion – one of the three major credit bureaus. If you don’t need the full range of features offered by a property management platform and simply want to perform tenant background checks, SmartMove might be a good option for you.

Tenant screening services with SmartMove offers the following advantages:

• Credit, Criminal, Eviction and Income Insights Reports
• Backed by TransUnion
• Manage multiple properties from a single account
• Landlord chooses who pays
• Providing tenant scoring system (ResidentScore™)
• Access to FCRA quality reports without lengthy approval process
• All online, results in minutes
• Consumer information protected
• No membership is needed to request a report

Here’s how to use SmartMove to run a tenant background search:

1. Go to the TransUnion SmartMove tenant screening service page.
2. Click SCREEN TODAY.
   
3. Choose your status (landlord/tenant/real estate agent), enter your email, check the box and click START SCREENING.
   

What to look for on the tenant background check?

After obtaining tenant screening reports on a potential tenant, you should carefully review the information contained in the reports to determine whether the tenant is a good fit for your property. In particular, you should look at their criminal history and credit report, as well as any past evictions.

If the tenant has a low credit score, it may be a sign that they have a history of making late payments or failing to pay their bills on time. You should also look for any red flags in the tenant’s rental history, such as evictions or frequent moves.

Finally, you should check the tenant’s criminal background to ensure that they do not have a history of violent or criminal activity. However, even if an applicant has a criminal record, it does not necessarily mean that they should be automatically disqualified. Consider the nature of the crime and when it occurred. If it was a minor offense that happened a long time ago, it may not be relevant. Keep in mind any legal restrictions, such as those for sex offenders, and the frequency of the crimes.

Once you have reviewed the tenant screening reports, you can use the information to make an informed decision about whether to rent to the potential tenant. If you have any concerns or doubts about the tenant’s suitability, you may want to consider asking for additional information or references before making a final decision. Alternatively, you may choose to reject the tenant and continue searching for a more suitable candidate.

Image credit: Image by storyset on Freepik

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