{"id":1371,"date":"2012-10-17T06:19:46","date_gmt":"2012-10-17T13:19:46","guid":{"rendered":"http:\/\/www.rentecdirect.com\/blog\/?p=1371"},"modified":"2016-12-27T15:33:26","modified_gmt":"2016-12-27T23:33:26","slug":"the-value-cost-of-tenant-screening","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/the-value-cost-of-tenant-screening\/","title":{"rendered":"The Value and Cost of Tenant Screening"},"content":{"rendered":"<p>We all know <a title=\"tenant screening\" href=\"http:\/\/www.rentecdirect.com\/details\/tenant_screening.php\">tenant screening<\/a> is plays a vital role in placing a tenant, but why is that? \u00a0Without properly screening a new tenant a landlord can end up losing far more time and money than they gain. \u00a0A lot of landlords might assume this would never happen to them, or they are a good judge of character and may not need to verify the facts; however, fact is, poor tenants are on the increase and they are becoming better at lying about their past. \u00a0 When interviewing the most successful landlords, they all say they absolutely positively would not give a new tenant keys prior to running a background check.<\/p>\n<p>Tenant screening costs less than $30 and can be as little as $15. \u00a0This cost can save you thousands, maybe tens of thousands down the road. \u00a0Landlords who did not screen their tenants have ended up in some pretty bad situations, here&#8217;s a few I&#8217;ve heard about:<\/p>\n<ul>\n<li>Tenant was a &#8220;professional renter&#8221; who knew the system and worked the system in such a way as to get over 1 year of free rent, plus $15,000 in costs from the landlord when the landlord did nothing wrong other than forgetting to screen this tenant. \u00a0This tenant had been evicted numerous times in the past for doing the same thing which would have showed up on their background report.<\/li>\n<li>Tenant was a sex\u00a0offender\u00a0and the landlord did not check. \u00a0Because this was a multi-unit property with kids, the landlord was held liable when a problem occurred with a neighboring child. \u00a0This sex offender would have shown up in a background report.<\/li>\n<li>Tenant setup a drug operation inside their rental and contaminated the property. \u00a0The landlord had to pay $35,000 to rehab the property before they could re-rent it. \u00a0The landlord was out the $35k, plus over 6 months rent while the eviction and rehab took place. \u00a0This tenant had prior drug issues which would have shown up in their background report.<\/li>\n<\/ul>\n<p>These issues and many more could have been avoided if the landlords took 3 minutes and ran a background report on the tenants prior to giving them keys. \u00a0<a title=\"how to tenant screen\" href=\"http:\/\/www.rentecdirect.com\/details\/pdemo_video2.php?keepThis=true&amp;TB_iframe=true&amp;height=533&amp;width=883\">Watch here how simple it is to run a background credit and criminal report on a tenant.<\/a><\/p>\n<p><strong>Tenant screening costs you nothing. \u00a0<\/strong>Most successful landlords include the costs to screen the tenant within their application fee. \u00a0\u00a0A typical application fee would be between $30 and $50 (depending on area). \u00a0This fee pays in full your entire cost to screen a tenant. \u00a0Just remember to keep your application fee close to your actual costs. \u00a0Afraid having an application fee might deter renters? \u00a0Landlords say it only deters renters who cannot afford $30. \u00a0Do you want to rent to somebody who doesn&#8217;t have $30? \u00a0How are they planning to afford rent or the security deposit if they can not afford the application cost?\u00a0 \u00a0Landlords say by clearly stating the application fee and that credit and criminal records are reviewed on their listings they save a lot of time showing the property unqualified renters.<\/p>\n<p>Here are some vital reports that successful landlords agree must be reviewed prior to placing a tenant.<\/p>\n<ul>\n<li><strong>Nationwide criminal<\/strong>: \u00a0This will show me if the tenant has had criminal issues in your state, or any other state.<\/li>\n<li><strong>Nationwide eviction<\/strong>: \u00a0This will show you if any other landlords have had to take this tenant to court to get them out of their house.<\/li>\n<li><strong><a title=\"tenant credit\" href=\"http:\/\/www.rentecdirect.com\/details\/tenant_screening.php\">Tenant Credit report<\/a><\/strong>: \u00a0A credit report is vital in confirming if the tenant can afford to rent from you. \u00a0A credit report will not only show any delinquencies or payment habits the tenant may have but it will show their current obligations. \u00a0A simple formula is to take their income, minus obligations reported on their credit report and that is how much they have left to afford food, rent, utilities, and gas.<\/li>\n<li><strong>SSN Verification<\/strong>: This inexpensive report shows you a complete address history of the tenant and assists in confirming if the SSN really does belong to them. \u00a0You need to know that their SSN is valid since all other reports, and any future collection or judgement activity relies upon it being accurate.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>We all know tenant screening is plays a vital role in placing a tenant, but why is that? \u00a0Without properly screening a new tenant a landlord can end up losing far more time and money than they gain. \u00a0A lot of landlords might assume this would never happen to them, or they are a good [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":true,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"iawp_total_views":1,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[72],"tags":[292,387,385,386,779],"class_list":["post-1371","post","type-post","status-publish","format-standard","hentry","category-tenant-screening","tag-application-fee","tag-best-practice","tag-tenant-credit","tag-tenant-criminal","tag-tenant-screening","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Value and Cost of Tenant Screening<\/title>\n<meta name=\"description\" content=\"We all know tenant screening is plays a vital role in placing a tenant, but why is that? 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