80 million Americans, or about a fourth of the country, have a criminal record. Of those 80 million, 19 million have felony convictions on their records. Yikes.
That's a concerning statistic for anyone, but especially landlords. A typical lease means for twelve months, a violent or dangerous criminal is living on your property - a huge liability. Screening potential tenants to avoid this is a must, but how do you do it right?
Cody, Wyoming landlords, listen up. Here are some invaluable tenant screening tips for your next tenant background check - and all future ones.
Draw a Line with a Tenant Background Check
It's important that your rental background check has a standard of what's OK, and what's not. With so many Americans having criminal records, you have to decide what disqualifies a person from living on your property.
First-Time vs. Repeat Offenders
First, it's probably a good idea to separate a one-time criminal from a repeat offender. Someone who committed a crime years ago, perhaps even decades ago, may well be repentant. Someone who has been in the pen twice last year is a different story.
Types of Crimes Matter
Second, know that not all crimes are equal. Someone arrested for possession of a drug is not in the same camp as someone with an armed robbery charge. Frankly, the former is likely to better respect your pet policy than a non-offender.
Streamline the Process
A background check, for the first time, can be a lot to deal with. You have to gather the applicants' pertinent information, collect fees, and go through the submission process. It can take up a lot of free time that might be better spent with rental accounting.
Streamline the process by making it clear to applicants exactly what they need to do and submit. Consider using an online portal to expedite and automate everything. Partner with a reliable background check provider that doesn't require much hand-holding.
Be Even-Handed
There are a few key things to know about background checks. One, they must be fair and even across the board. Landlords have been embroiled in discrimination lawsuits for targeting marginalized people only.
Application Fees
Two, figure out how you're going to fund the background checks. If there's going to be a one-time fee, set it up for all applicants. Waiving the fee for some, but not others, could likewise raise questions of discrimination or unfair application practices.
Know a Background Check Is One Metric
At the end of the day, a background check only refers to a person's recorded, charged criminal history. It's not a comprehensive evaluation of a person in terms of honesty and dignity. Use it as one of the many tools in your toolbox.
Hire Property Management to Do Background Checks
A tenant background check is a must, but do it right. Decide what disqualifies a person, and find ways to make the process quicker and easier. Try to stay objective and fair, while knowing the background check is not the be-all and end-all.
PMI Yellowstone in Cody, WY, can help streamline your background check process - and much more. Our crack team of realtors ensures your properties maximize their value without skimping on customer service. Schedule a consult with us today.
