Did you know that most of Boulder's renters spend at least 30% of their income on rent, according to Boulder Reporting Lab? When rental markets reach that point, people tend to move around less.
This, in turn, causes landlords to snap up any tenants they can. It is crucial, however, not to skip your tenant background check.
Tenant screening and tenant placement services are the best ways to protect your cash flow and investment property. They're also great ways of ensuring you get tenants with whom you can have a great working relationship. Learn about strengthening your tenant screening process in this quick guide.
1. Obtain Written Consent from Applicants
You must get explicit written consent from an applicant before you may conduct a tenant background check. This is a legal requirement at the federal level that you must satisfy to do a credit check.
Colorado State law also requires you to get written consent before you're allowed to collect an application fee. In this meeting, you must inform applicants of:
- What information you're looking for
- How you'll use the information to do the check
Proper communication upfront sets the tone for a positive landlord-tenant relationship. By getting written consent, you fulfill your legal duties and lay a foundation of trust.
2. Verify Personal and Financial Information
Verifying personal information ensures you aren't caught in an identity theft scenario. Going further to check your prospective tenants' financial backgrounds lets you see if they'll be able to make rent each month.
Start by confirming their identity through documents such as:
- Government-issued ID
- Social Security number
- Passport.
Double-check that the information matches the application to avoid fraudulent cases. Next, verify employment and income. Contact their employer to confirm job stability and income levels.
It's common practice to aim for tenants whose income is at least three times the rent. You'll also want to prioritize tenants with good credit scores and histories. These traits show that they take their responsibilities seriously and won't become overindebted while renting from you.
3. Check Your Applicants' Rental History
Speaking with previous landlords can offer unique insights into a tenant's rental behavior that may not appear in background checks. Start by confirming the applicant's previous addresses listed on the application to verify their rental history. When contacting landlords, ask about:
- Payment punctuality
- Adherence to lease terms
- The condition of the property upon move-out
- Whether they were good neighbors (e.g., were there noise complaints)
This also gives you another round to see whether anyone will give you fraudulent references. Cross-reference contact information with public records or business listings. Hearing directly from someone who interacted with the tenant can uncover red flags or reassure you of their reliability.
Get Unbeatable Tenant Screening Help With Boulder Property Management Services
Conducting a thorough tenant background check is vital for Boulder, CO, landlords to secure reliable tenants. Unfortunately, it can be very time-consuming and costly, but outsourcing can bring costs down while providing excellent service.
PMI Coal Creek combines a dedication to customer service with cutting-edge property management techniques. We use the latest solutions to provide our clients with excellent full-service management, background checks, accounting, and more. Contact us today to get the best property managers in Boulder on the job.
