Are you properly screening applicants for your rental properties? RentPrep is a tool that makes background check quick and easy, while still being thorough. Everything is online, so there is no paperwork to worry about. Visit their website for additional info, but we are going to look at some of the highlights here.
A few sayings that I love related to tenants and indirectly about background checks:
- “Your tenants are your asset, not your property.”
- The tenants are what provides cashflow. A vacant house is a liability that costs you money every month.
- “When you buy your property, you buy your tenants.” – A wise, local investor friend.
- The location and quality of your property will attract the type of tenant you will be dealing with in the future for the most part.
The right tenant will pay their rent on time every month with little trouble. The wrong tenants can cause damages, evictions, higher turnover, and headaches for you. One of the best ways to avoid these nightmares is with a thorough background check.
Why are Background Checks Important?
Background checks and proper tenant screening is one of the most important things you can do to reduce management headaches. These checks allow you to easily identify red flags for potential applicants. Criminal history, evictions, poor payment histories, etc will show up in your check. Having consistent rental criteria helps comply with fair housing requirements, and the background check will serve as a key part of this.
What is Included in a RentPrep Background Check?
There are 2 types of background checks offered by RentPrep. We will look at the differences below. Your rental criteria will help determine which is a better option for you.
| RentPrep Background Check |
|---|
| Included: • SSN Validation • Nationwide Evictions • Bankruptcies • Judgements and Liens |
| Add On: • Nationwide Criminal & Sex Offender Search • Credit Decision Report ○ No specific score ○ Pass/Fail based on your criteria ○ Includes summary codes for failed checks • Income Verification |
| TransUnion Full Credit Report |
|---|
| Included: • SSN Verification/Address History • Nationwide Evictions • Bankruptcies • Nationwide Criminal & Sex Offender Search • Full Credit Report |
| Add On: • Judgements and Liens • Income Verification |
The RentPrep option is a little cheaper, especially if you aren’t using any add-ons. We actually use the TransUnion option. One reason I like this is the full credit report. Also, the applicant doesn’t have to give me a social security number. They get an email for the background check and they enter everything right online. This just gives less private personal info on the application itself. They also pay for the background check directly online.
Conclusion
Whether you choose the RentPrep or the TransUnion Full Credit Report option, make sure that you are doing your background checks. The tenant will pay for them, and it’s a simple way to weed out tenants that may cause problems for you down the road. Learn more or order a background check: Here.
Check out our other Landlord Resources. Also, if you haven’t reviewed your landlord insurance recently, our team at Think Safe Insurance would be happy to help you. Request your FREE insurance review today, and we will include our policy review checklist for free.