Rental verification is an essential step in the leasing process, as it helps landlords identify potential risks and ensure they are selecting the right tenant for their property.
As landlords want to ensure that they are renting their property to trustworthy and reliable tenants who will pay rent on time and take good care of the property.
On the other hand, tenants want to make sure that they are renting from a reputable landlord who will provide a safe and comfortable living environment.
The only best way for landlords to verify the trustworthiness of potential tenants is through rental verification only. So, what is rental verification and why does it matter, let’s understand–
What is Rental Verification?
Rental verification is the process of verifying a tenant’s rental history to confirm that they have been good tenants in the past. This can include verifying their rental payment history, checking their references, and confirming their employment status.
Why does Rental History Verification Matter?
Verifying tenant rental history is important for landlords because —
- Through this landlords could ensure that they rent their property to a trustworthy and reliable tenant who will pay rent on time and take good care of the property.
- It helps landlords identify potential red flags early in the leasing process. If a prospective tenant has a history of evictions or unpaid rent, this can be a warning sign that they may be unreliable or high-risk tenants.
- It helps in determining whether a prospective tenant is financially stable or not. By verifying a tenant’s rental history, landlords can see if they have a history of paying rent on time or if they have a history of late payments or defaults.
- It helps in identifying tenants’ identities and ensuring they are who they say they are. As identity theft is a growing problem, and by verifying a tenant’s rental history, landlords can verify that they are dealing with the correct person and avoid fraudulent activities
So from the above, it is clear how important it is to do the tenant rental history verification. Now, let’s take a look at how you can verify tenant rental history.
How to Verify Tenant Rental History?
There are several methods for verifying tenant history, and landlords should use a combination of methods to ensure they are obtaining accurate information.
Below are some common methods for verifying tenant history.
1. REQUEST RENTAL APPLICATION INFORMATION
The first step in verifying tenant history is to request a rental application form. This is a type of document that every tenant must fill up whenever they are interested in investing in the property.
This form includes information about the tenant’s employment history, income, and references. Landlords can use this information to verify the tenant’s employment status and income and to check their references.
2. ASK FOR RENTAL HISTORY VERIFICATION FORM
Another effective way to identify tenants’ guinness and past records is by asking them to fill in a rental verification form or a lease verification form. A rental verification form is a type of authorization form that a tenant signs in order to permit landlord to conduct a background check.
This background check offers you permission to make a call to tenants’ former employers as well as previous and current landlords. While people changes over time to become a better tenant. It’s always an effective way to get signs of tenants. This way you’ll get an idea of what the tenant’s expectation is.
3. OBTAIN THE TENANT’S CREDIT REPORT
A tenant’s credit report is an essential tool for verifying their rental history. A credit report will provide information on the tenant’s credit history, including any late payments, defaults, or other financial issues.
Landlords should request a credit report from a reputable credit reporting agency and ensure that the report is up-to-date and accurate.
4. CONDUCT A BACKGROUND CHECK
Landlords may also consider conducting a background check on prospective tenants to verify their rental history. A background check may include criminal history, employment verification, and other relevant information.
In the U.S. most states allow landlords to reject tenants who came with a criminal background or who were convicted of violent crimes such as drug or sex offenses. Before conducting the background check always make sure to obtain written consent from the tenant before running a background check, as failure to do so may violate privacy laws.
5. REQUEST FOR THE PROOF OF EMPLOYMENT AND INCOME
Verifying a tenant’s income is another important step in the rental verification process. Landlords should verify the tenant’s employment and income to ensure that they can afford to pay rent. For such you being a landlord can request proof of income from prospective tenants, such as pay stubs, bank statements, or tax returns.
Verify the tenant’s employment status and income to ensure they can afford the rent. Landlords can also request pay stubs or bank statements to confirm the tenant’s income. Landlords can also request to pay stubs or contact their employer directly.
6. CONTACT PREVIOUS LANDLORDS
Landlords can contact the tenant’s previous landlords to confirm their rental payment history and to ask about any issues that may have arisen during the tenancy. This can include asking about damages property, noise complaints, or any other issues that may have affected the tenant’s ability to be a good tenant.
When you do this, you’ll get the clue of the most essential part that is tenant screening. You being a landlord can not only learn the tenant’s previous record of rental payment but also the frequency of such happening.
Identifying tenants’ punctuality with past rent payments is the perfect way to measure how you should determine the rental payments time as a landlord.
7. VERIFYING TENANT REFERENCES
Finally, landlords may consider verifying references from prospective tenants, such as personal or professional references requesting a rental application form. This form should include information about the tenant’s employment history, income, and references.
These references can provide valuable information on a tenant’s character, reliability, and trustworthiness. Landlords can use this information to verify the tenant’s employment status and income and to check their references.
To Wrap Things Up
Overall, rental verification is an important part of the rental process. By verifying a tenant’s rental history, landlords can ensure that they are renting to trustworthy and reliable tenants who will pay rent on time with taking care of the property.
This can help landlords avoid potential problems down the line and ensure a successful and stress-free tenancy for both the landlord and tenant. Also, remember to obtain written consent from the tenant before conducting any background checks, and follow all relevant laws and regulations.
So, simply we can say that rental verification is a crucial step in the leasing process. It helps landlords identify potential risks and ensure they are selecting the right tenant for their property.
Read More : Four Important Rental Property Inspections