Tenant Screening and Its Critical Ingredients (continued)

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Birth Information

Date of Birth – Although a fairly simple request, the tenant’s birth date is often incomplete and inconsistent with other information. It is then necessary you obtain a complete date of birth – of course with the month, day and year. This is very important as very often this is the only thing to differentiate people with similar or common names. Another thing is that, be sure that given date is consistent with all other information. If possible, compare it to a driver’s license and any other information available.

• Place of Birth – This is but another important thing to consider when conducting tenant screening. The city and state or county of origin is very critical for verification as well as additional cross checking, or for other evidence. One should always remember that every piece of information must be consistent with every other. The tenant’s birth place may reflect an inconsistency with the origin of the social security number or list of previous residences. And, an accurate and complete birth place will help you locate relatives in case the need arises to locate the tenant for collection purposes.

• Mother’s Maiden Name – Along with the date and place of birth, the mother’s maiden name can also be useful in determining the tenant’s consistency and honesty. It is often said that knowing a mother’s maiden name can be the most important piece of the puzzle when searching for assets. Of course, it helps you to confirm the applicant’s background, but more to it, a mother’s maiden name may be the difference in finding out assets and detecting fraud.

Driver’s License

Note: Bona fide picture identification is a crucial part of an application package. Well, typically, a driver’s license is the easiest to obtain. Outside from the apparent advantage of a photographic comparison with the prospective tenant, a driver’s license is a wealth of additional information to help with cross checking for accuracy. It is even more useful for locating the tenant in the future.

Here’s what you can do:

• Cross check the complete name on the license with the name on the application and other information provided. Just find out is the name is the same, if it is spelled the same, or is the middle name or initial the same.

• Cross check the address and date of birth with the application and other identification. This is to insure consistency. Along with this, be sure that the physical description approximates the photograph and describes the prospective tenant in front of you.

• Note that the driver’s license number is the most necessary piece of information on the license. So, if a photocopy machine is not available, be sure that the number is included on the application. Note that the driver’s license number may also be an excellent tool to help you locate a bank account in case there’s a need to locate assets for collection purposes.

Address History

On the most basic, the importance of an address history cannot be over stated. When it comes to fraud detection, confirming an address history at the period of tenant screening may be the one fact that cannot be recreated from the person whose identity may have been stolen.

If for instance you suspect that the address history of your prospective tenant is inconsistent with the other documentation provided by the applicant, then simply ask for copies of the tenant’s old checks, tax returns and other evidences that could confirm the given addresses. In addition, the screening report should provide an address history which is consistent with that indicated on the application.

Now, if the address history provided is accurate, then such information may be very helpful to an investigator searching to locate an evicted tenant.

Bank and Savings Account

Experts often say that a prospective tenant who does not have a checking account is red flag, something that needs immediate action. He is probably a very high risk tenant. There is a possibility that they could not obtain an account due to improper identification, illegal alien status or other account was closed by the bank for bouncing too many checks. So, landlords must beware.

Assuming your prospective tenant has a bank account, try to check it out. What you can do is call the bank to confirm the funds and then ask for an account rating. Most banks will actually indicate when the account was opened, the range of their average balance, and then cross check if the check they have given you is good. Never let them move in until you have obtained this information.

One thing to note here is that the existence of a bank account is an indication of stability and responsibility. It is also an indication of where to proceed to levy money in case the tenant gets evicted for defaulting on the rent. So if possible, confirm the bank account information every month when the rent is paid. This will ensure that your records are always kept current and will even flag a possible adjustment in responsible parties.

Tenant’s Employment

When we say employment, we are somehow referring to the source of income. Accordingly, the source of income insures your security in renting to a prospective tenant. So, the first step that you can take is to be sure that the complete company name, address and phone number is given. Also, the supervisor’s name, pay rate, and the length of term of employment are all important pieces of information that must be checked and confirmed. And, if your tenant works for a smaller company, it is equally important to confirm his employment.

If your tenant claims to be self-employed or an independent contractor, simply ask him to present some proofs. Ask for a license or a business card, and check with the governing agency or private information provider to find out if the license is active and in good standing.

Criminal Background

Knowing the rising crime in urban areas, the property owners must then be concerned with introducing a dangerous or undesirable tenant into their building. As a property owner, you must protect your prospective tenants as well as your investments.

There are also some criminal records that you can access for tenant screening. Nearly all of them are public and perhaps the easiest way to access them is through your tenant screening provider. Your provider may access information from different depositories throughout the country.

However, before ordering a criminal background check on a prospective tenant, it is somehow important that you have sufficiently checked the application. Once you are satisfied with the information given, you can request the criminal background check from a certain county or state.

References

Finally, obtaining references on a tenant application is vital for a number of reasons. At first glace, references may seem worthless, unless they are checked out. As far as I know, the most important reference is the current or previous landlord. So if your prospective tenant is moving across town or country, they must have lived somewhere else. Call the former landlord and ask about the types of tenant they were, including their payment habits, and if they did the rules and respect the property.

Other useful references could be the tenant’s friends and relatives. They are equally important in the event of an emergency or need to locate the tenant after they have moved out. These references are also the key to any collector performing skip tracing on a tenant that left owing you money.

So those basically are the most important ingredients of a successful tenant screening. The most important thing to consider in general is to make sure if all the given information are accurate, consistent and reliable. As a landlord, you must then be very smart and learn to play detective.

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