Tenant Screening: 5 Things You Must Do Before Renting to Potential Tenants
Over the past few weeks, Indonesian media has been focusing on a few cases of drug seizures by authorities in rented apartments. There are many places where drug dealers can hide, but one of their favorites is in an apartment. This is meant to serve as a warning to landlords to be cautious when renting their properties in order to avoid becoming involved in illegal activities.
Renting out your property to tenants comes with a number of risks, including security, credibility, default (failure to pay), and the stake of property damage. To minimize these risks, property landlords must strictly screen their prospective tenants. Remember that bad tenants are too costly to handle.
One method is conducting a tenant screening. In the screening process, several checks can be carried out to detect risks.
Tenant screening can be carried out by both individual property landlords (boarding houses, apartment, and rented houses) and business property landlords (office spaces, shops, warehouses, etc.). There are at least five things that you need to check, which can be tailored as desired:
- Criminal check. This examination is carried out to ensure that prospective tenants have no criminal records.
- Examination of company deeds
- Interview with the previous landlords to determine the track record, reputation and behavior of potential tenants.
- Credit score to reduce the risk of having tenants with financial issues.
It is critical to know whether the person who will occupy your property is neither doing illegal activities nor on a list of most wanted people. As a landlord, you are responsible for the safety of your tenants!
Don’t leave your property at risk, do tenant screening today!