Recent statistics show that more than 70 million Americans have a criminal record. For property management, you must know them when doing tenant background checks. You can still rent to them even if someone has a criminal record.
You run several risks if you choose not to do a tenant criminal background check, including identity fraud and promoting a safe community. Moreover, you increase the risk of property damage.
Here's why a tenant's criminal background check is essential for property management.
Identity Fraud
The Federal Trade Commission receives millions of identity theft complaints yearly, costing Americans billions of dollars. During the tenant screening process, it's essential to know who potential tenants are and who they say they are.
Good real estate management means running credit reports. During tenant background checks, a credit report will show you if someone is hiding their disastrous financial past. Should a potential give you a fraudulent identity, it's almost impossible to know if they have a criminal record.
In addition, if someone presents themself as a different person, you might never see rental income. Potential renters may not have a job.
Safe Community
Keeping the community safe as a property owner or real estate management company is a top priority. Suppose you own an apartment building with multiple units. A tenant screening combined with tenant background checks gives peace of mind to everyone.
For example, in a tenant criminal background check, you might find a potential renter is a registered sex offender. Finding out that information raises red flags, especially for others who live on the property.
Property Damage
Damages may not only happen at the property a tenant rents. There could be damage in the common areas, such as the laundry room or recreation area.
A tenant could attack a property management worker or contractor. There could also be stolen items from cars or storage sheds.
Damages cost you money. Damage also costs you your reputation and your relationship with your current tenants.
Lawsuits
You must be aware of housing discrimination and the consequences. You can't deny renting a property because of a criminal record.
Getting important information in a tenant criminal background check protects you from liability. Should something happen, and you know there could be a problem, it could create a lawsuit. It's essential to protect yourself and your real estate investment.
If you have any questions, consult legal counsel before making a decision.
Risks of Avoiding a Tenant Criminal Background Check
There are several risks if you choose not to do a tenant criminal background check. You could face identity fraud issues, put the community at risk, or risk property damage. In addition, you could be civilly liable in court.
As professionals in property management, we will complete a criminal background check. We want your investment property to be safe and for you to avoid a possible lawsuit. Contact us today, and let us guide you through the process!