From January to August 2021, landlords filed 13,212 evictions in Colorado. Of course, the most common reason landlords file evictions is failure to pay rent.
As a landlord, you need to focus on finding ways to decrease this problem. But how can you avoid having tenants who don't pay their rent? One way is through tenant background checks.
Any long-time landlord will tell you that tenant background checks are essential. Are you ready to learn why? Keep reading to learn why these are vital for all landlords.
Your Properties Are Valuable
Landlords invest their time and money into real estate. They pay the mortgage payments on these properties. Additionally, they pay taxes, insurance, and repair expenses.
Buying and maintaining rental properties is costly. But these properties have value and the ability to produce income.
So when you rent a unit to someone, you're giving them access to a valuable asset. Thus, finding tenants you trust is essential.
Running a tenant screening is a great way to find the right people for the units. You'll want tenants who will care for your properties. After all, the properties are your investment.
Tenant Background Checks Reveal Key Details
Tenant background checks come in different forms. For example, one step of a tenant background check is a credit check.
A person's credit tells you if they're trustworthy. Their credit tells you how they manage their credit lines and bills, including if they pay on time.
Secondly, running a criminal background check tells you about the person's legal history. It reveals if they have misdemeanors or felonies on their record.
If you discover criminal charges on a person's record, look closely at them. For example, did these occur many years ago? Does the person pose safety risks now?
Additionally, you can learn other details by researching a person's history. For example, you can learn about their previous rental history or job status.
Good Tenants Reduce Your Workload
Good tenants tend to have a few qualities landlords like:
- Pay rent on time
- Follow the lease
- Care for their properties
Additionally, many good tenants become long-term tenants.
One benefit of finding good tenants is you'll have a lighter workload. This occurs in several ways.
First, long-term tenants live in their units longer. The result is a lower tenant turnover rate. Each time a tenant vacates a unit, it creates work for you.
Secondly, good tenants won't bother you unless they have serious issues. Thus, you'll have fewer issues to address.
Finally, good tenants pay their rent. The result is the need to file fewer evictions. So it would be helpful to learn how to screen tenants to find better quality ones.
Seek Help for Running Tenant Screenings
Tenant background checks help you sift through the applications you receive. As a result, they help you select the best tenants for your rentals.
You can hire a property management firm to run tenant background checks for you and other duties. Contact us if you own rental properties in Denver. We can help you with tenant screenings and other services.
