Owning rental properties and being a landlord can be the road to riches – or the road to ruin. It all depends on how you handle your business affairs and how well you screen your potential tenants. A great tenant can give you the cash flow you need to meet your financial goals and build your wealth, but a single bad tenant can send your real estate experience into a tailspin. Here are some smart landlord tips for checking tenants and making sure everything goes smoothly.
Don’t Rely on the Word of the Current Landlord Alone
Many people make the mistake of relying solely on the word of the current landlord. If the tenant is a bad one, their current landlord may be looking for a way to unload them, and you could be the unwitting victim.
To get a truer picture of your prospective tenant, you should go back a bit further. Get the full rental history of the person you are considering, and check with all their past landlords – you will be glad you did.
Perform a Full Background Check
Performing a background check is an essential part of screening a prospective tenant. Even if everything seems fine and the individual seems great, you should not skip the background check process.
You can start your check online by using free resources, but paying for a more extensive screening could be worth your while. The more you know about your potential tenants and their histories, the easier it will be to find the best fit.