The post How to Do a Background Check on a Tenant appeared first on Avail.
]]>
As a landlord, ensuring the quality and reliability of your tenants is crucial for the smooth operation and success of your rental business. That’s why it’s important to know how to do a background check on a prospective tenant to get a better understanding of their suitability as a tenant.
In this article, we share what a background check is, how to properly conduct a tenant background check, and answer some common questions related to the process.
What Is a Tenant Background Check?
A tenant background check is a screening report that shows specific details about a potential applicant such as their financial, criminal, and eviction history.
Tenant background checks typically include the following:
- Credit history: A credit report provides insights into an applicant’s financial responsibility, including their payment history, outstanding debts, and any bankruptcies or foreclosures.
- Criminal history: A background check may reveal any criminal convictions or pending charges that could pose a risk to the safety and well-being of other tenants or the property itself.
- Eviction history: This component helps determine if the applicant has a track record of being evicted from previous rental properties.
You can use a property management platform to request these reports from applicants, which can help streamline the process since most platforms also request written authorization.
How to Run a Background Check
Here are the necessary steps for performing a tenant background check.
1. Collect a Tenant’s Information
You’ll need specific details from the tenant to run a background check, such as their name, date of birth, address, social security number, and contact information. To do this, you can request a rental application to collect this information from them online.
2. Obtain Written Consent
Most states can tenant screening laws in place that make it illegal to request screening reports from applicants without their knowledge or limit which reports you can request. For that reason, it’s important to refer to local landlord-tenant laws before moving forward with the process.
The good thing is most screening platforms automatically require authorization before an application moves forward, removing the responsibility from you. You can also request individual reports (if not all types are allowed) or bundle them together for a one-time fee with Avail.
3. Review the Reports
After completing a background check, you can view the reports to approve or deny their application. If you find an item on their report, it’s best to talk to the applicant about it to give them a fair chance. Certain states also have limitations on landlords’ use of information on certain reports, so refer to local ordinances.
How Long Do Background Checks Take to Complete?
The length of time it takes to complete a background check depends on the service you use, and the responsiveness of the tenant.
With Avail, your prospective tenant will be asked to authorize their background check with step-by-step instructions. Once authorized, you’ll have the reports ready to view from your landlord profile in a matter of minutes.
What If a Tenant Can’t Authorize a Background Check?
In most states, a tenant needs a social security number or individual taxpayer identification number to authorize background checks. If your tenant doesn’t have either (this is common with international tenants), you may need to consider alternative options like a credit reference, landlord reference, or a bank statement.
Are There Laws on Background Checks?
Background checks performed during the tenant screening process are subject to state and local landlord-tenant laws. In most states, landlords must obtain written consent before performing a background check on a tenant.
States may have additional requirements, so be sure to review the laws and mandates in your state, and consult with a legal professional for additional assistance.
Screen Prospective Tenants With Avail
With a tenant screening service like Avail, you can find a qualified tenant for your rental with ease. Request a digital application, have your applicants authorize background checks online, and review all the information conveniently from your landlord dashboard.
Create an account or log in today to get started. And for more resources to help you find the best tenants for your rental, be sure to visit our tenant screening toolkit page.
The post How to Do a Background Check on a Tenant appeared first on Avail.
]]>The post How to Decline a Prospective Tenant’s Rental Application [With PDF] appeared first on Avail.
]]>
You’ve posted your rental listing and have received multiple applications, but only one can move forward. One applicant will receive the good news on the approval of their application, but the rest will need to receive a rental application denial letter. The letter will inform them why their application was denied politely.
A rental application denial letter, also called an adverse action letter, states that the applicant has been denied and what screening reports influenced the decision (if any). We discuss everything you need to know about turning down applicants and provide a template for your convenience.
When to Reject Applicants
It’s important not to reject applicants without a fair and legitimate reason, as this can be viewed as discrimination. An unfair rejection could result in legal trouble, so it’s essential to understand the Fair Housing Act and the local landlord-tenant laws of your state, especially as they relate to rental applications.
However, this doesn’t mean you have to accept any tenant who applies. You can establish parameters for accepting or denying applicants based on acceptable reasons, such as income requirements, a minimum credit score, rental history, or employment. Setting these criteria and sharing them in your listing can make it easier to identify which applications you won’t accept and reduce the number of unqualified applicants you encounter.
Legal Reasons to Decline a Tenant Application
Here are some common and acceptable reasons to reject a prospective tenant’s application.
1. They Have a Low Credit Score
Landlords commonly run credit checks on prospective tenants to get a sense of an applicant’s financial history. A low FICO Credit Score (below 580) could suggest that the applicant isn’t financially responsible and struggle to pay rent on time.
If the prospective tenant has a credit score slightly lower than what you require, it may be worth requiring a guarantor or co-signer to get their application approved. However, you can also deny them and move on to the next application.
To check an applicant’s credit score, you can request a credit report from the top three credit bureaus like Equifax, Experian, and TransUnion. With Avail, you can request a TransUnion credit report for a one-time fee that you or the tenant can cover. This will include a credit score, tradelines with balances, debts, inquiries, and collections.
2. They Have Insufficient Income
Rent payments are the primary source of income from your rental business, so you’ll want to ensure tenants can pay rent consistently. You are within your legal rights to decline a tenant who can’t afford to rent the property. As a general rule, most landlords expect their applicants to make at least three times the monthly rent to be considered.
You can verify an applicant’s employment and income by contacting their employer. However, if an employer cannot verify the details you need due to legal reasons, you can request several documents to verify a potential tenant’s income. These include pay stubs, a W-2, or a tax return, to name a few.
Be mindful of fake documents when requesting verification. Because they can be easy to fake, it’s smart to confirm the applicant’s employment, check that the numbers total the reported annual income, and request additional info from the human resources team if possible.
3. They Have Poor Rental History
Another easy way to see if a tenant will be a good fit for your rental is by verifying their rental history. This involves contacting the applicant’s previous landlord to confirm the rental history on their application.
After confirming that the applicant rented the previous property listed, ask the landlord if they had any problems renting to the tenant. This could involve paying rent late, evictions, property damage, and other lease violations. You can legally reject the tenant’s application if you come across any red flags.
If you prefer to automate the process, you can perform a landlord reference check with an Avail application. Once prospective tenants provide the contact information of their previous landlords, our system will email the landlord reference with a questionnaire to fill out. They’ll be asked questions on their experience with the tenant and also issues to know of.
4. They Are Missing Application Requirements
A rental application form ensures you’re treating all applicants fairly and lets you request the necessary information to help find your next tenant.
You can request many details on your application form as long as you adhere to local landlord-tenant laws. Some applicants, such as international renters, may not be able to provide common forms of identification like a social security number. In this case, you can substitute your requirements for a credit reference, landlord reference, or bank account statement instead. However, if a tenant fails to provide the requested information, you can reject their application.
Ensuring that your application is easy to fill out can make it more likely that you get all the information you require. With an Avail rental application, you can decide what information you’d like to request and have the form emailed directly to prospective tenants with easy-to-follow instructions to complete the application online.
To learn even more about your applicants, you add custom questions to your application by upgrading to an Unlimited Plus account.
5. Other Legal Reasons
There are additional legal reasons to reject a tenant’s application, such as smoking if you don’t allow it on your property, having filed for bankruptcy, or if the tenant does not agree to your lease terms.
After familiarizing yourself with local landlord-tenant laws, the most important thing you should do is to thoroughly screen applicants. Doing so will ensure that any reason for rejecting a tenant is legally sound.
Illegal Reasons to Decline a Tenant Application
In addition to any recess specified in local ordinances, the US Department of Housing and Urban Development has specified illegal reasons to reject a prospective tenant’s application in the Fair Housing Act. These include:
- Race
- Color
- National origin
- Religion
- Sex, gender identity, or sexual orientation
- Familial status
- Disability
Rejecting a tenant based on any of these factors is considered housing discrimination and is illegal. Arbitrary discrimination is also considered illegal and refers to refusing to rent to applicants for reasons like how they dress or for having tattoos. When screening tenants, it’s best to keep these factors in mind to avoid legal trouble.
How to Politely Decline an Application
Rejecting a tenant’s application isn’t fun for either party, so you should aim to be professional. Instead of just telling the tenant you won’t be moving forward with their application and expecting them not to question your decision, it’s best to send a rejection letter to give them more information.
The Fair Credit Reporting Act (FCRA) requires landlords to inform a rejected applicant of any information gained through a consumer report, such as a credit report from a credit bureau. Your rejection letter is a great place to include this detail and inform the applicant of their right to see the information being reported about them and correct inaccurate information.
Here’s an example of a rejection letter that you can use to politely and professionally decline a rental application:
Date:
Name(s):
For Address:
Dear ,
Thank you for submitting an application for the property listed above. We regret to inform you that your rental application has been denied due to the following reasons:
The Fair Credit Reporting Act requires us to tell you where we obtained your credit report when it’s used in making a decision towards your application. Your credit report was provided through:
- Equifax Credit Information Service, P.O. Box 740241, Atlanta, GA 30374—2041. 1-800-685-1111.
- Experian Consumer Assistance, P.O. Box 949, Allen, TX 75002. 1-888-397-3742.
- TransUnion Consumer Relations, 2 Baldwin Place, P.O. Box 1000, Chester, PA 19022. 1-800-888-4213.
Additional Information on Your Credit Report:
You have the right to obtain a free copy of your credit report from the credit reporting agency that was used to pull your credit report. The copy must be obtained within 60 days of your receipt of this letter. If you believe there has been an error on your credit report, you can dispute the accuracy or completeness of any of the information provided by the credit reporting agency within 60 days of receiving this letter.
If you have any questions regarding the status of your application, feel free to reach out to me directly. Thank you again for completing an application, and I wish you the best of luck.
Best,
(YOUR SIGNATURE)
Do You Have to Tell Applicants That They’ve Been Denied?
While ignoring applicants you’ve rejected may be tempting, it’s courteous and professional to notify them once you’ve made your decision. Being prompt and communicative can reflect well on you as a landlord, and notifying applicants that their application was rejected and why can help protect you from allegations of discrimination.
Furthermore, remember that if you base your decision on the results of a consumer report, the FCRA legally requires you to notify the applicant.
Find Your Ideal Tenant With Avail
Rejecting tenants is a challenging part of being a landlord, but Avail Online Tenant Screening allows you to get a comprehensive view of applicants. Choose the specific reports you’d like to request for a one-time fee and review the information directly from your account so you can feel confident in your tenant selection.
Log in or create an account today to get started. To review local landlord-tenant laws, explore educational articles, or access rental document templates, visit the Avail Resources page.
The post How to Decline a Prospective Tenant’s Rental Application [With PDF] appeared first on Avail.
]]>The post How to Run a Credit Check on a Tenant appeared first on Avail.
]]>
Online rental applications help you learn more about prospective tenants interested in applying for your rental property. But to get more visibility on their credit score and financial habits, you will need to run a credit check.
We outline how to run a credit check on a tenant using a property management software platform like Avail and answer common questions about credit checks.
What Information Is Needed to Run Credit Checks on Tenants?
Before running a credit check on tenants, there are a few steps you’ll want to take. For one, applicants must be over the age of 18 to submit a rental application and authorize a credit check. You must also follow the Fair Credit Reporting Act guidelines and ensure your state allows landlords to request credit checks to avoid violating landlord-tenant laws.
To begin the process, you’ll need the following information:
- A rental application: You can request a rental application to learn more about applicants, such as their full legal name, if they have a social security number or individual taxpayer identification number (ITIN), their date of birth, residential history, and landlord references.
- Applicant authorization: An applicant will need to authorize a credit check during the tenant screening process. If they’re unable to authorize a credit check with an SSN or ITIN, you may need to explore other methods to properly screen them.
- Landlord verification: Most credit bureaus require proof that you’re indeed the landlord for the rental property the applicant is applying for. You may need to provide proof of residence, proof of identification, or proof of rental property ownership.
How to Run Credit Checks on Tenants With Avail
You can easily run credit checks on multiple prospective tenants through Avail. Here are four steps to request credit checks during the tenant screening process.
1. Create a Landlord Account
To screen tenants, you’ll need to create an Avail account as a landlord and add your rental properties. It’s important to note that you will need to set up the rental property a prospective tenant is applying for before you can request a credit check.
Avail is free for both residential and commercial properties, but you can upgrade to Unlimited Plus for $7/unit per month to access additional benefits like waived ACH fees, as soon as next-day rent payments, and lease cloning.
2. Navigate to Your Applications to Customize
When you create an account, you can access our online rental application template and add a request for tenant reports like a credit check, background check, or eviction check. As a reminder, it’s advised to refer to local landlord-tenant laws to better understand which reports landlords can request from tenants. If you discover that your state does allow credit checks, you can adjust the settings of the rental application to include a TransUnion credit check.
States vary in how much to charge to run a credit check, but this fee is typically covered by the applicant. You also have the option to cover the cost yourself, if preferred.
3. Request Applicant Authorization
Your tenant will receive an email with easy-to-follow instructions on how to complete an online rental application and authorize a TransUnion credit check. Rental applications can take a few days to process, depending on how fast the prospective tenant submits their information. It’s important to note that credit checks requested through Avail will show as a soft credit check, meaning it won’t affect the applicant’s credit score.
Once they’ve completed both steps, the results will automatically populate to your dashboard to review their information for up to 30 days.
4. Review Applicant’s TransUnion Credit Report
Once receiving the credit check, you’ll be able to review their credit score, credit usage, account summaries, and tradelines. You can also see if they have a strong history of making on-time payments or if a majority of their income is going towards debt repayment.
Based on the provided information, you can determine if you want to approve or deny their application based on your criteria.
How to Read a Tenant’s Credit Report
A credit report includes tons of information on an applicant’s credit habits, from how much available credit they have to their usage. However, it may be more helpful to focus on an applicant’s credit score and payment history.
Credit scores are based on various factors, so it’s important to understand why they have the score they do and which factors are impacting their score the most. Is it because they missed payment dates in the past or do they have a low amount of established credit? The answers to these questions can help you better understand their credit score. You may also want to look at their payment history to see if they have a strong history of making on-time payments.
If a tenant does have a low credit score, you may want to see if they’ve done the work to improve their score the past few months or if they continued to get negative remarks.
What If a Tenant Cannot Authorize a Credit Check?
If a tenant cannot authorize a credit report, there are still ways to understand an applicant’s financial habits. You can request the following documents in addition to their application:
- A credit reference
- A landlord reference
- Monthly bill statement
- Bank account statement
- Pay stubs or offer letter
You also have the option to add five additional questions to an Avail rental application with Unlimited Plus to learn more about an applicant.
It’s important to allow all applicants a fair chance to apply for your rental to avoid violating Fair Housing laws. If a tenant is unable to authorize a credit check, then it’s advised to explore other options instead of immediately rejecting their application.
How to Handle Rejecting a Tenant Due to a Poor Credit Report
Before rejecting an applicant, it may be helpful to ask them questions on their rental application or credit report to get more context on the issue — especially since both can include errors.
However, if you’ve determined the applicant does not meet your criteria, you can suggest the tenant finds a co-signer or guarantor to get approved or provide a tenant rejection letter that states the reasoning for denying their application. The tenant rejection letter must state if your decision was based on their credit report to abide by the Fair Credit Reporting Act.
Request Credit Checks With Avail
Requiring credit checks from prospective tenants can help you better understand their financial habits that can impact how they handle rent each month. You can also learn more about their payment history, credit usage, and much more.
Request a TransUnion credit report and other tenant screening reports from multiple tenants with Avail. Get comprehensive insights on each applicant directly through your dashboard to help you find your next tenant.
Create an account to run a credit check on tenants, require online rental applications, collect rent payments online, and more — for free.
The post How to Run a Credit Check on a Tenant appeared first on Avail.
]]>The post How to Write a Landlord Recommendation Letter [Free Template] appeared first on Avail.
]]>
A landlord recommendation letter is usually requested by previous tenants applying to a new rental. While not all landlords request a letter of recommendation from a tenant’s previous landlord, they may if the tenant does not have a long credit history or is an international tenant without a social security number.
For that reason, it’s important to include all the necessary information the landlord needs to determine if the prospective tenant is the right fit. We share what to include in a landlord recommendation letter and a free template to take the guesswork out of writing a letter for your previous tenants.
What to Include in a Landlord Recommendation Letter
A landlord recommendation letter should include your contact information, such as your email and phone number in case they want to reach out. The letter should also include:
- The date
- The address of the rental property your tenant rented
- The lease term dates
- Lease violations (i.e., missed rent, noise complaints, property damage, pet-related issues)
- Your overall renting experience with the tenant
- A closing statement with your signature
Make it clear that a landlord wrote the letter, as there can be instances where letters are written by a tenant’s friend or colleague.
What to Avoid in a Landlord Recommendation Letter
To avoid violating Fair Housing Laws, avoid commenting on a tenant’s sex, race, color, national origin, religion, and familial status in your landlord recommendation letter. Even if you believe the comments are positive, this can still be considered a violation that can impact your rental business. Some states may also have additional restrictions on what you can comment on regarding your tenants, so it’s advised to research your local landlord-tenant laws when writing a letter of recommendation.
You may want to avoid writing a landlord recommendation letter if you did not have a positive experience with the tenant. Instead, you should suggest the landlord speak with you directly to better understand your reasons why.
How to Write a Landlord Letter of Recommendation
A letter of reference for a tenant should reference honest, relevant information and be checked for spelling errors. To give you a general idea of what to include, here is a letter of recommendation template to use for tenants you recommend:
“Date:
Name(s):
For Address:
Dear ________________,
I am the [LANDLORD/PROPERTY MANAGER] for [ADDRESS]. I’m writing this letter of recommendation on my previous tenant, [TENANT NAME], who resided in my rental property located at [ADDRESS] for [DURATION]. [TENANT NAME] moved in on [MOVE-IN DATE] for a lease term of [LEASE DURATION], which expired on [EXPIRE DATE].
My tenant has a strong history of making on-time rent payments and has proven to be a reliable tenant. They maintained the property well and cleaned it prior to moving out of the property. I had no complaints from neighbors or lease violations during their tenancy.
I would gladly rent to [TENANT NAME] again and recommend them as a tenant. If you have any questions for me, I can be reached at [CONTACT INFORMATION] between the hours of [TIME FRAME].
Best,
[YOUR SIGNATURE]”
If your previous tenant committed a lease violation, manipulate the template to include information about each violation and the resolution. The same applies to tenants with pets — call out if the tenant had a pet and if they paid pet rent or had any pet-related issues the landlord should be aware of.
Manage Your Rentals With Avail
Writing a landlord recommendation letter is a great way to inform other landlords about your experience with tenants. To help you reflect on your previous renting experience with each tenant, you can reference your tenant history through your Avail dashboard to easily see if a tenant paid rent on time, and escalated maintenance requests right away.
Create an account to set up your rentals and begin managing your properties with landlord software designed for DIY landlords.
The post How to Write a Landlord Recommendation Letter [Free Template] appeared first on Avail.
]]>The post How to Avoid Fake Pay Stubs and Employment Verification appeared first on Avail.
]]>
When verifying a prospective applicant’s employment history, you’ll most likely receive pay stubs and other documentation to confirm the information they provide. Ideally, applicants will provide accurate information on their income and employer, but this may not always be the case due to how easy it can be to create fake pay stubs online.
For that reason, it’s important to know how to avoid fake pay stubs and other fake financial documents during the tenant screening process. Keep reading to see how other landlords handle employment verification and tips to keep in mind.
What Does a Check Stub Look Like?
Check stubs include a person’s name and address, their job title, gross earnings for a set pay period, total deductions, taxes, a pay summary, and information about their employer. The overall structure of a check stub varies depending on the company, but they should all share the same details. If you receive a pay stub that is missing key information, such as the employer or the person’s job title, then you may need to do additional research to confirm the information is accurate.
How to Spot a Fake Pay Stub
Pay stubs take a few minutes to create online, making it easier for applicants to create a falsified version. Having a process in place to spot fake pay stubs can make it easier to identify them before moving on to next steps.
Here are three ways to verify an applicant’s income and employment information as a landlord.
1. Confirm the Applicant Currently Works at the Company
There can be instances where an applicant can make up a company or list one they’re not a current employee at. Because of this, it’s advised to first confirm the company exists or request an offer letter with the applicant’s job description, pay rate, and official start date.
If an applicant is self-employed, then you can request invoices sent to clients or tax forms provided by employers they worked with. Self-employed individuals do not receive pay stubs and instead receive 1099 tax forms to get paid for contract work. You can also request invoices sent to clients with information on the project, the company requesting the project, and their pay rate to complete the project.
2. Check the Numbers Total to Their Annual Income
A common mistake in fake pay stubs is adding pay amounts that do not total to the annual income listed on their application. To check if the amounts listed on their application match, you can multiple the gross pay by 12 months for their annual gross income. Gross income does not include taxes or deductions, so it should generally match up.
If the numbers do not match with the number listed on the application, you can reach out to the applicant for information as to why.
3. Request Additional Information from the Company’s Human Resources Team
If you’re still unsure on the validity of an applicant’s employment or income, you can reach out to the current employer to speak with a human resources representative.
When asked about what current landlords do to spot fake documents on the Avail Community Forum, one landlord mentioned contacting an applicant’s employer to release current information on their employment. However, some employers require the applicant’s written authorization to provide details on their employment. This can make the tenant screening process take longer, but can ensure the information on an applicant is accurate.
Pro tip: Some landlords advise looking up an employer’s contact information to confirm an applicant’s employment versus calling the number on a pay stub.
How to Spot a Fake W-2 Tax Form
Unlike a pay stub, W-2 tax forms include information on a person’s total salary and wage information instead of a snapshot of their income. To spot a fake W-2, you can follow a similar process listed above to confirm the information is correct.
- Check for the total income: Confirm the listed amount aligns with the number on their rental application.
- Verify the company exists: Do some research to confirm the company exists and if they’re currently in business.
- Verify applicant’s employee status: See if the person’s name is listed on the company website or if the company’s HR department can verify the details on the applicant.
Screen Prospective Tenants With Avail
Verifying an applicant’s employment history helps find tenants that can afford the rent price and make consistent payments. While it may not be common to receive fake pay stubs, it can happen, so it’s important to have a process in place to catch false information from applicants.
In addition to the steps above, you can also request additional tenant screening reports with the help of platforms like Avail. Screen applicants, request tenant credit and background reports, and access all employment documents from applicants in one place. Create an account to get started today.
The post How to Avoid Fake Pay Stubs and Employment Verification appeared first on Avail.
]]>The post What Is Rental Verification? How to Verify Tenant Rental History appeared first on Avail.
]]>
Finding your next tenant requires you to check an applicant’s residential history and connect with their previous landlords to see how they’ve handled renting. But how exactly can you verify an applicant’s rental history as a first-time landlord?
We outline a step-by-step guide on how to handle the rental verification process and share questions you can ask previous landlords to get information you need on your applicants.
What Is a Rental Verification?
Rental verification is when a landlord contacts an applicant’s previous landlord to confirm and verify the rental history they listed on their application. While credit checks and rental background checks provide insights on a tenant’s financial habits and criminal history, rental verifications present landlords with an opportunity to connect with previous landlords to get their experience with the applicant.
Why Does Rental History Verification Matter?
Verifying your tenant’s rental history can help you determine if the information in their rental application is accurate. If any part of their rental history is falsified, then that is something to consider when reviewing their application.
An applicant’s previous landlord is also considered a great resource that can answer important questions regarding their payment history, how they escalated maintenance issues, and the way they treated the landlord and other tenants. With these insights and their tenant screening reports, you can better determine if they’re the right fit for your rental property.
How to Verify a Prospective Tenant’s Rental History
There are two ways to handle the rental verification process — you can either contact a tenant’s landlord references directly or use property management software platforms to automatically do it for you. We outlined how to verify an applicant’s rental history with Avail.
1. Request a Rental Application
Avail requires applicants to provide their residential history with their previous landlord’s contact information to be contacted. Our system then emails the prior landlord a questionnaire that asks them about their experience with the applicant to complete online.
2. Review the Landlord’s Answers to Your Questions
Once the rental application has been completed by the applicant, you’ll be able to see what their previous landlords answered in the questionnaire. You can then determine whether or not the tenant was being honest on their rental application or if you need further clarification on certain answers.
3. Directly Contact the Landlord for More Context
If a previous landlord left a comment in the questionnaire you’d like more information on, you also have the option to reach out to them directly. This can be a great chance to ask them more specific questions on the applicant to ensure you’re well informed on their renting habits before approving or denying their application.
Questions to Ask in a Rental Verification Form
Whether you contact an applicant’s previous landlord yourself or through a tenant screening service, there are certain questions you’ll want answers to. Here are the top questions to ask previous landlords in a rental verification form:
- Can you confirm the applicant rented from you?
- Did the applicant pay rent on time?
- Did the applicant reasonably take care of the rental property?
- Was the unit clean and in good order when the applicant left?
- Was the applicant disruptive to other tenants or neighbors?
- Did the tenant violate any of the terms listed on the lease agreement?
- Did you present lease renewal options to the tenant?
- Would you rent to the tenant again?
By asking these questions, you can be much closer to finding a tenant that has a proven track record of paying rent on time and taking care of the property.
Screen Prospective Tenants With Avail
Conducting a rental verification is essential to ensure an applicant is being honest about their residential history, as well as allow you the chance to reach out to their previous landlords. With Avail, our system automatically streamlines the rental verification process by reaching out to landlords through email to have them complete a short questionnaire.
You can then review their responses through your dashboard, in addition to tenant screening reports like a credit report and background check.
Create an account to easily screen prospective tenants with landlord software designed to make renting easier for landlords and tenants.
The post What Is Rental Verification? How to Verify Tenant Rental History appeared first on Avail.
]]>The post Best Practices for Screening International Tenants appeared first on Avail.
]]>
The tenant screening process for those that are not U.S. citizens may seem unclear, but there are ways to navigate this process without violating the Fair Housing Act and local ordinances. Here’s everything you need to know about screening international tenants to ensure they meet your criteria before signing a lease agreement.
What to Know About Renting to International Students and Tenants
The Fair Housing Act prohibits landlords from refusing to rent to an international student or tenant based on their national origin. Not only do you need to consider all the applications you’ve received, but your tenant screening process needs to remain the same for each applicant, regardless of whether an applicant is a U.S. citizen or an international tenant.
Tenants need a social security number (SSN) or individual taxpayer identification number (ITIN) to authorize a credit and background check in most states. But since most international students and tenants don’t have an SSN or ITIN, you may need to require additional documentation to verify their information.
Some states limit how much a landlord can screen a tenant, regardless of their national origin, so you’ll want to check your local landlord-tenant laws before beginning the screening process.
How to Screen Tenants Without a Social Security Number
To avoid unnecessary fees for a credit or background check, it’s advised to first confirm whether or not a prospective tenant can authorize them with a SSN or ITIN. If you discover that the tenant does not have a social security number, then you may want to instead consider alternatives to verifying their information. Here are a few steps you can take to ensure international tenants can afford your rent and take care of your property:
- Credit reference: A credit reference on a rental application provides information on a financial relationship the tenant had with a person or business that can speak to their trustworthiness and ability to make on-time payments. Examples of this are asset documentation, character references, or financier support.
- Landlord reference: If the international applicant has previously rented an apartment, then you may be able to connect with their prior landlords. Avail landlord reference checks automatically reach out to landlords once the applicant has provided their contact information, but you can also reach out to them directly.
- Monthly bill statement: An applicant’s phone bill or utility bill statement can be a good indicator of their ability to make on-time payments.
- Bank account statement: A bank statement can provide insights as to how they’re currently paying for their monthly expenses. This can be with stipends, allowances, or grant money.
- Pay stubs: Tenants currently employed in the U.S. should be able to provide two of their most recent pay stubs to verify their income.
When tenants complete an Avail rental application, they can add any additional screening documents for you to reference through your dashboard.
When to Accept or Deny an International Tenant
All tenants you’re considering should meet your tenant screening criteria in order to qualify for your rental property. Tenants usually need to meet the income requirements, provide documents that illustrate their ability to make on-time payments, and leave a good impression during the property showing. When that’s not the case, then it may be best to proceed with caution before approving or denying their application.
If you’re planning on denying an international tenant’s application, you’ll need to provide a justifiable reason that does not violate Fair Housing laws or local ordinances.
Landlords cannot reject a tenant’s application based on their familial status, sex and gender, disability, religion, color, race, and national origin.
Create Custom Applications With Avail
Screening international students and tenants can seem daunting, but there are ways to do this that don’t violate Fair Housing laws. You can require additional documentation to prove the information they provided is correct, or create a custom Avail rental application. With Avail, you’re able to add five custom questions to our standard application template to help you get all the information you need about an applicant.
Create an account today to make the tenant screening process easier and more streamlined.
The post Best Practices for Screening International Tenants appeared first on Avail.
]]>The post How to Check Someone’s Credit for Renting appeared first on Avail.
]]>
While a rental application is a great way to learn more about a tenant’s rental history, a credit report shares information on how they’ve handled their finances — which can serve as a great indication on how they’ll handle rent payments.
In this article, we walk you through the process of checking a tenant’s credit for renting and considerations to keep in mind.
Where to Get a Tenant’s Credit Report
The most common ways of getting a tenant’s credit report are directly through one of the three major credit reporting bureaus (Equifax, Experian, and TransUnion) or through a property management software platform like Avail.
The benefit of requesting a credit report through Avail is being able to bundle it with a rental application to keep everything in one place. Instead of having to sort through different sites, you’re able to screen tenants in one platform, compare applicants with one another, and notify them on the status of their rental application.
What to Look for in a Tenant’s Credit Report
As a landlord, you’ll want to see how a prospective applicant has historically handled their credit accounts. Do they currently have significant unpaid debts? Do they have a strong history of making on-time payments? These are the types of questions you’ll want to consider when reviewing a tenant’s credit report.
With Avail, you can easily access an applicant’s TransUnion credit report showing their credit score, credit usage, account summaries with any past due amounts, and the payment history for open tradelines.
When to Request a Credit Check from Tenants
Most landlords prefer to request a credit check after completing a rental property showing with a prospective tenant for a few reasons. It’s important to prescreen all of your leads to ensure your property is what they’re looking for and they’re aware of your rules as a landlord. You also want to confirm they’re comfortable authorizing a credit and rental background check, since it will require them to share their social security number or an individual taxpayer identification number.
While you do have the option to request a credit check prior to a rental showing, it’s advised to wait until they’ve seen the property in-person to ensure only tenants serious about renting your property submit an application.
How to Collect Credit Check Fees
Credit check costs can vary depending on location, but either you or the prospective tenant can cover the cost. If you decide that the tenant will cover the cost, you can collect the credit check fee directly through Avail, as well as other rent payments and security deposit fees. To collect credit check fees with Avail, follow these steps:
- Log in to your account: Set up your rental properties to screen applicants on Avail. Once that’s complete, navigate to the unit your applicant is interested in.
- Click “Applications”: Click on “Edit” to go to the application’s default settings and tailor your rental application to include personalized questions and require a credit check.
- Add a credit check: You can add a credit report alone or get a bundle of all three screening reports (credit check, background check, and eviction check). However, you’ll want to check local landlord-tenant laws to avoid violating screening laws in your area.
- Access the results through your dashboard: The applicant will need to authorize the credit check and cover the fee to complete their application. The final results will then be uploaded to your dashboard for review.
Can a Landlord Do a Credit Check Without a Social Security Number?
If you discover that an applicant doesn’t have a social security number or an individual taxpayer identification number, then you may need to explore other tenant screening methods. You can request a credit reference or connect with their previous landlords for insights on their rental history and money management.
It’s important to note that landlords are unable to check a tenant’s credit history without a social security number, since there is no way to pull information from any of the credit bureaus. That’s why you should inquire early on as to whether or not an applicant is able to authorize a credit check before having them cover any credit check fees.
Can Tenants Provide a Copy of Their Own Credit Report?
There will be instances where a tenant will want to provide a renter profile or their own credit report to offset the costs of completing several rental applications. Certain states do require landlords to accept a credit report a tenant has provided if they did so within a certain timeframe, so it’s important to refer to your local landlord-tenant laws and Federal Housing laws prior to accepting or denying their credit report.
Request Credit Checks With Avail
Requiring a credit check from applicants is an important step in the tenant screening process. Whether you’re interested in learning more about a tenant’s payment history or credit score, Avail provides accurate and trusted TransUnion credit reports to help you find your next tenant.
Create an account or log in to screen prospective tenants with landlord software designed with landlords and their tenants in mind.
The post How to Check Someone’s Credit for Renting appeared first on Avail.
]]>The post What Does an Avail Landlord Reference Check Consist Of? appeared first on Avail.
]]>
Landlord reference checks are a great way to learn more about a prospective applicant and the way they’ve previously handled renting. But if you’re new to the tenant screening process, you may be unsure of how to properly reach out to previous landlords and what questions to ask.
In this article, we explain how to run a landlord reference check and share the landlord reference questions you can ask a tenant’s previous landlord.
What Is a Landlord Reference Check?
Similar to an employment reference check, landlords are able to perform a landlord reference check to better understand if an applicant has a good history of paying rent on time and taking care of a rental property.
Although a rental background check provides visibility on a person’s credit score and criminal record, a landlord reference check allows a future landlord to connect with a former landlord to learn more about their experience with the tenant. This could be especially helpful if you’re unable to run a credit check due to a tenant not having a social security number or no credit history.
How to Run a Landlord Reference Check With Avail
Avail allows landlords to streamline the tenant screening process by offering rental applications with automatic landlord references. Here’s how to perform a landlord reference check when screening applicants.
1. Create a Rental Application for the Unit
When creating an account on Avail, you can opt for a free account or upgrade to Unlimited Plus to access waived ACH fees, lease cloning, and custom rental applications.
After successfully setting up all of your rental properties, you can then request an application from any prospective tenant. Click the “Applications” tab to begin customizing the rental application to ensure all the information you want is included.
2. Request 5 Years of Residence History
Avail rental applications can be customized to your liking with Unlimited Plus. Landlords typically request five years of residence history, but this number can be changed depending on your preference.
The prospective tenant will be required to provide the contact information of their previous landlords so our system can send them an email with a landlord reference check questionnaire. The questions they’ll be requested to answer are the following:
- Can you confirm the applicant rented from you?
- Did the applicant pay rent on time?
- Did the applicant reasonably take care of the rental property?
- Was the unit clean and in good order when the applicant left?
- Was the applicant disruptive to other tenants or neighbors?
It’s important to note that the questions on the form cannot be changed, but you can always contact a tenant’s former landlords directly to ask them additional questions.
3. Email the Rental Application to the Prospective Tenant
The final rental application will be emailed to the prospective tenant for them to complete. The email will highlight frequently asked questions they may have to ensure they’re informed on the application process.
It’s advised to provide tenants with a 48-hour timeframe to complete the application before deciding to move on to another applicant. If they still haven’t completed the application within that time frame, then you can move forward with another tenant to avoid delays in filling your property.
Completed applications will populate in your landlord dashboard for you to review and compare all of your applicants. Once you’ve determined whose application you’ll accept or deny, the next step will be to make a lease agreement for your rental.
Landlord Reference Questions to Ask
If you still prefer to contact the applicant’s landlord directly, we shared a few landlord reference questions to consider asking in addition to the ones on the questionnaire.
- Did you offer a lease renewal option? Asking this question can help determine whether or not the landlord wanted to continue renting their property to the tenant. If they expressed not wanting to renew due to previous issues, then this may be something to consider.
- How did the tenant handle maintenance issues? Maintenance issues are bound to happen, so it’s important to know how the tenant handled them in the past. Did they let the landlord know right away or allow them to get worse?
- Were there any major disputes with the tenant? There’s a chance there may have been past disputes with the applicant, but it’s important to hear both sides of the story before making a decision on their application.
Screen Prospective Tenants With Avail
Conducting a landlord reference check doesn’t have to be time consuming. With Avail, you can automatically require references from previous landlords on a rental application. Once they’ve provided their experience with an applicant, you can decide if they’re the right fit for your property.
Create an account or log in to screen prospective tenants with Avail landlord software.
The post What Does an Avail Landlord Reference Check Consist Of? appeared first on Avail.
]]>The post What Does a Rental Background Check Consist Of? appeared first on Avail.
]]>
When becoming a landlord, you’ll want to find reliable tenants that will take care of your property and pay rent on time each month. While you can always filter through applicants with a rental application, adding a rental background check to your application process can help you get an even more comprehensive overview of all your applicants.
To guide you through the tenant screening process, we outlined what a rental background check consists of and how to request a background check on Avail.
What Is a Rental Background Check?
A rental background check is when a landlord or property management company checks a tenant’s credit, rental, eviction, and criminal history to determine if they’re the right fit for the rental property.
Cities and states vary in just how extensive the tenant screening process can be, with some restricting the information you can ask in a background check and others prohibiting the criminal background check altogether. It’s also important to note that the rental background check you conduct must be uniform across all applicants to avoid violating any Fair Housing laws or discriminating against a tenant based on their race, sex, nationality, and more.
If you come across an applicant who has previously been evicted or has a criminal history, it’s advised that you take circumstances into account and give them the chance to explain their situation further in order to fairly screen all potential tenants. Failing to do so could land you in legal trouble depending on your local fair housing ordinances, HUD guidelines, and landlord-tenant laws.
What Does a Rental Background Check Consist Of?
A rental background check shares information on who an applicant is, how they handle their finances, and what properties they previously resided in. With Avail, a rental background check typically includes the following three main reports: a credit, criminal, and eviction history report.
- A credit report: Landlords can request a credit report from TransUnion to view the applicant’s credit score, credit utilization, payment history, and account summaries.
- A criminal history report: This report allows you to see any past criminal reports attached to the applicant, including descriptions of the crime and if it was a felony or misdemeanor.
- An eviction report: See if a tenant was previously evicted, along with a description of the incident so you can better understand their rental history.
Tenants will need to authorize any background checks before they are conducted, as each report contains sensitive and personal information. Landlords can either run their own rental background checks or accept a tenant’s renter profile if they’ve already created one with Avail. Both options will ensure you receive accurate and up-to-date information on an applicant so you can find your next tenant.
How to Request a Background Check on Avail
Avail makes the tenant screening process easier and less stressful for both tenants and landlords. Here’s how to request a background check through your Avail landlord account.
- Log in to your account: You’ll first need to set up your rental properties to screen applicants on Avail.
- Navigate to the unit your applicant is interested in: This step is important for landlords with more than one property in their portfolio.
- Click “Applications”: Under the Applications tab, click on “Edit” to go to the application’s default settings. You can tailor your rental application to include personalized questions, require additional reporting, and more.
- Add your preferred screening reports: Here you can add a credit report, a criminal background report, and an eviction report, the cost of which your applicant is usually expected to cover.
- Access the results through your dashboard: Once the applicant has authorized the tenant screening reports, you’ll be able to access the reports through your dashboard in minutes.
How Long Does a Background Check Take for an Apartment?
A rental background check can take a few hours to a few days depending on how quickly an applicant provides authorization. If a tenant provides a renter profile during the application process, then this can expedite the process since you’ll already have access to their credit, criminal, and eviction history reports on hand.
Screen Your Tenants With Avail
Finding the perfect tenant for your rental property begins with having an accurate, easy, and fast tenant screening process. While you can always handle this part of the rental stage yourself, property management software platforms like Avail allow you to streamline the process and abide by local ordinances to avoid discriminating against any applicant. Get started in minutes by creating an account on Avail to manage your rental properties today.
The post What Does a Rental Background Check Consist Of? appeared first on Avail.
]]>