The Importance of Tenant Screening
How to Choose the Best Tenants for Your Property
In today's era of rapid technological advancement, where convenience and deception often go hand-in-hand, safeguarding your investments has never been more critical. As a property management company, we understand that thorough applicant screening is the cornerstone of long-term success. Let's delve into some of our screening procedures and their pivotal role in shielding our clients from potential risks.
The Importance of Rigorous Screening
Having a rental property involves inherent risks, including the possibility of encountering individuals with malicious intent. From fake IDs and paystubs to falsified tax documents and bank statements, the spectrum of fraudulent practices is broad and ever evolving. Identifying these red flags early on is crucial to securing a strong, qualified, and reliable tenant for rental properties.
The best way to get better at spotting these fraudulent documents is through experience. At McKenna Property Mangement, our applications department screens upwards of 200+ applications every month! Drawing from this wealth of experience, we've developed a keen eye for spotting red flags within rental applications. Employing a multifaceted approach, we leave no stone unturned in our quest to prevent fraudulent tenants from being placed in our rental properties.
Key Screening Tools and Factors:
- Income Verification: Through our industry-leading property management software integration, applicants can link their bank accounts to verify their income. This software will promptly compile a detailed report on monthly deposits, verify their origins, and project annual income—all of this information is extracted securely from the applicant’s bank account. While this step remains optional for applicants, our team additionally requires three months of verified income. Through this experience, we've prevented a lot of applicants from being approved with fake paystubs and fraudulent bank statements.
- Credit Check: We conduct credit checks through the big three credit bureaus, providing us with a ton of valuable information. We meticulously verify that the names and addresses provided by the applicant align with the credit report, while also receiving alerts if the report has ever been associated with fraud. Delving deeper, we analyze various factors including collections, on-time payments, estimated monthly debt, and the length of credit history. Additionally, this comprehensive report includes landlord-reported data, revealing rental payment history, any instances of late payments, or outstanding debts. Furthermore, it sheds light on evictions and bankruptcies, enabling us to make informed decisions regarding prospective tenants.
- Rental History Verification: We request that the previous property manager of the applicant completes a questionnaire, providing valuable insights into their tenancy and financial responsibility. Additionally, we cross-reference homeownership status with tax records for landlords in Nevada, ensuring the legitimacy of rental verifications.
- Collaborative Partnerships: We collaborate with reputable third-party companies to verify the authenticity of financial documents, such as paystubs, tax records, and bank statements. By cross-referencing information, we ensure the legitimacy of all information provided by applicants.
- Expertise and Resources: Our team possesses a deep understanding of the intricacies of property management and the nuances of tenant screening. By leveraging our expertise, you gain access to comprehensive risk mitigation strategies tailored to your specific needs.
- Time and Resources: Conducting comprehensive tenant screenings requires significant time, resources, and specialized knowledge. Our swift turnaround time of 2-3 business days not only maintains applicant engagement, but also ensures that we don't lose potential tenants due to screening delays.
We are committed to deploying robust screening protocols and leveraging our expertise to protect our clients' investments. Our team has seen it all – fake IDs, fraudulent paystubs, bank statements and taxes, even fraudulent rental verifications. However, because of the tools, resources, and expertise we have, our clients don’t have to worry about one of these fraudulent applicants becoming tenants of their rental!
If you are looking to partner with a property manager to help remove the stress of trying to stay on top of all the fraudulent methods applicants use today, look no further! Let us help you place the best tenants in your property and protect your investment.
