Jan 16, 2023
Mark Roemer Oakland Shares Mistakes You Could Make When Checking a Tenant’s Background

Introduction

According to Mark Roemer Oakland, when you’re trying to generate a new revenue stream, you have all kinds of options, especially if you have enough money to buy off the property. However, sometimes, property owners may be too hasty to get people in and recover their investments quickly. Let’s check out the mistakes you could make when checking a tenant’s background.

The Mistakes

1. Skipping the screening process – One of the biggest mistakes you can do as a landlord is to entirely skip the tenant screening process. Irrespective of how quickly you want to fill up your property with tenants, it’s important to not let in even one bad tenant. A single bad tenant could end up costing you a lot more than you would have lost on a few weeks of vacancy.

Even if you get tenants with awesome references and recommendations from even your close relatives, you must screen tenants so that you can get qualified candidates. Don’t rely on your gut during the screening process either. Keep it consistent and maintain the same strict standards for everyone. Use concrete evidence to decide on tenants instead of relying on hunches.

2. Not checking credit report – A major component of background check is going through your tenants’ credit report. The credit report of a prospective tenant can give you a fair idea about how good they are at managing their finances. Look out for red flags like unpaid debts, missed payments, and an overall poor credit score.

3. Not verifying their identity – When you run background and credit checks, you must verify the candidate’s identity. Ask for a photo ID and keep it with you throughout the entire tenancy. If tenants commit a crime on your property, you may be liable if you don’t have their identity verified. If someone is hesitant to verify their identity it is a red flag, and you shouldn’t lease your property to such candidates.

4. Not asking for proof of income – Proof of income along with credit checks is vital to ensuring that your tenants will be able to make monthly or weekly payments without fail. You’re not running a charity. You need to make a return on your investment and may depend on that revenue stream when times are tough.

Requesting proof of income and ensuring that your prospective tenant has a stable income helps to avoid several headaches. You can verify proof of income through the tenant’s pay stubs, a letter from their employer, or their bank account statement. If the candidate does an unconventional job or business, you may want to check their employment history. A safe bet is to get tenants who have three times the income of the rent. 

Conclusion

Mark Roemer Oakland suggests that you avoid the above-mentioned mistakes or just use them as a reference while checking your tenant’s background. Depending on the type of property you have, you want someone who has a stable income and would be able to pay the rent on time.

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