Congratulations! You were smart enough to buy an investment property in Duluth, MN. Your investment is paying off because you now own property in one of the hottest rental markets in Minnesota. While this growing market means you have more applicants to choose from, it also means tenant background checks are essential.
Protect your investment by screening tenants effectively with these checks.
Credit Report
At PMI Lakeshore, we start tenant screening reports with a credit report. This report includes several financial elements and can be reviewed to determine the applicant's financial health.
- Credit score
- Debt
- Bankruptcies
An applicant with high debt may struggle to afford the monthly rent. Applicants with bankruptcy in their recent history may not be financially stable enough to pay the rent for the entire lease term.
Background Check
Tenant background checks are essential because they give you insight into the tenant's reliability. Several pieces of information will be included.
- Criminal record
- Employment history
- Education
- Driving record
Look for frequent employment changes that can signal unreliability or instability. A criminal history with violent convictions or fraud could disqualify an applicant.
Employment Verification
Do not take an applicant's word when reviewing their employment information. While we would like to believe that everyone tells the truth, this simply is not the case. Verify the following information.
- Place of employment
- Length of employment
- Total pay rate
Speak with the human resources department for the applicant's place of employment. If there are discrepancies, speak with the applicant to verify if there is a reasonable explanation.
Rental History
Looking into an applicant's rental history reports will give you insight into how they will be as your tenant. An applicant with a history of evictions will likely create a situation where you will be forced to evict them. This is an increased risk for you as the landlord.
You can also call previous landlords to find out how their experience with the tenant was. Ask the previous landlord about any issues they may have had, complaints from neighbors, and how they left the property at the end of the lease.
Tenant Screening Services
While you could gather all of these reports and analyze the information independently, this can be expensive and time-consuming. Consider outsourcing your tenant screening to landlord resources in Duluth. A property manager can provide a complete tenant screening report with a recommendation of approval or denial.
The property manager will also have a system in place that follows the law. That way, you reduce the risk of facing a claim that you violated Minnesota Fair Housing laws.
Perform Thorough Tenant Background Checks
You protect your property by thoroughly evaluating applicants through tenant background checks, credit reports, and employment verification. That way, you can take advantage of the hot rental market in Duluth, MN, without taking on increased risk.
Trusting PMI Lakeshore with your tenant screening process ensures you have reliable, long-term tenants who respect your investment. Our innovative technology gives us property management tools that optimize tenant screening.
Ensure your Duluth property's success by trusting PMI Lakeshore with expert tenant background checks and effective screening today.
