How to Structure a Rental Application for Background Checks
Rental Investments cost money and effort and therefore to entrust you hundreds and thousands of dollars to a complete stranger is irrational and failure to exercise due care can be equivalent to a disinvestment with the stress and frustration as the topping to the jumble. It is of paramount importance to accurately identify an individual and carry out some background check if they are entrusted with a large investment.
When renting out a property to an individual, start by requiring them to complete a lease application form that gives you specific rights to do a background check on the applicant. After making inquiries and completing forms, the applicant should sign and date the lease application form thereby giving you permission to search and verify the applicant’s personal information.
· The first segment should require entry of applicant’s Primary Information which includes applicant’s full name including middle name, Date of Birth, Social Security Number, Driver’s License.
o Examine and verify the listed applicant’s identity documents and match them with the client’s description and information completed application to form.
· The first segment should require entry of applicant’s Contact Information which includes; the applicant’s physical address.- (No P.O. Boxes should be accepted), home telephone number, cell phone number and email to facilitate efficiency and speed in verification of information and obtaining feedback from the applicant when needed.
o Verify in the rental application ‘contact information’ including telephone numbers, emails addresses given to ensure that they exist and also verify the current address. There have been cases whereby the phone numbers given answer to a house hold that don’t know the applicant. Do not entrust your investment to applicant whose abode you can not verify.
· Allocate a section for occupation Information which will include Present and prior place of employment and the respective categories in Employer Name, Period of Employment, Name of supervisor, Employer Address, Employer Telephone, Gross Income per week/month or year.
o Contact the employers listed and verify the name of employee, period of employment, and gross income to establish facts before making a decision to allow the applicant to occupy your investment property. NB: Some employers require that the request for information be presented in written form. It is worth the time and effort. E.g. A landlord once had an guy who asserted to be employed by a small company, only to find out that they were laid off two years ago. Now after that misinformation you will wonder what else they are lying about. Its important to carry out a thorough background check.
· Applicant should state information pertaining to major financial obligations so that you can access their ability to make payments effectively.
o Make an arrangement for automated payments if an applicant is approved to ensure that rental payments are given the appropriate priority when making payments.
· Applicant should give information of their personal contact in case of emergency and the information may includes full name, address and telephone number and the description of the nature of relationship.
o Contact the person listed and asks for a general description of the applicant.
After verify all the information you can also do a general background check of their financial and legal records by using ‘renter’s background check’ companies. The assessments are readily available online at any time of the day. In these reports you will find things that your initial check could not have reveled such as financial delinquency, rental lawsuits etc.
