Background Check On New Tenants
We are new to the investment world for ourselves and so now that we have a vacant house we advertised and someone has answered and says "I want it!". Where do we go to do all the background checking for things other than the credit. We can do the credit backgound check easily ourselves. How do we go about doing a criminal background check if we are not planning on using a property management to run the investment for us? What else would you suggest we look out for? We are very open to all inputs.
To do a criminal background check in Washington State you have to go through the Washington State Patrol. Your local law enforcement can also help you. It is not easy to do a background check. You will need a release signed by the person you are checking. Good Luck. I think it is better to ask for references and actually call them. Employers, Former Landlords etc.
It is a good idea to have them fill out an application that declares under penalty of perjury that the information is correct. Mortgage companies use them.
www.Citicredit.net does it for $9.95 for credit check & package deals where you can request social security number check, criminal, bad tentant check, eviction report, 7 yr address check for $19.95 for their basic report.
Well, the tenant that said "I want it" accually turned out to be a flake; and she is a mortgage broker! Being a realtor I couldn't give her business when she couldn't even call me back about her own stuff. I was glad all these things came about before she got into the house because she lost her opportunity to rent from us and we didn't lose any clients to a bad lender. I tried to keep my opinions strictly business which is hard when you meet someone and they seem to be real nice. The first red flags that we saw now after the fact was she had so so many problems right from the first visit and was openly telling me that when she got a divorce her and her ex-husband just let all four of their houses go into forclosure. This business can be so exasperating. That's why we said forget it and used a property manager.
JohnCl -
That quote is perfect. It is better to have no tenant than a bad tenant!!
Today I will be repainting the inside of my garage which says "DEATH TO ALL" with a skull and crossbones. The Lord smiled on us, Jerry Springer's guests have left and our house is still standing. I would rather spend my nights picking up beer cans for redemption then rent to them again.
Suggestion to any & all LLs present and future...find & join your local Rental Association.
Those groups have forms & affiliations with credit & tenant research facilities that are hard to duplicate at an equal or better price, and their affiliated Credit Agencies usually include a criminal scan & background check, including calls to past landlords, at very good price.
I'll put in a good word here about what I consider one of the nations's best rental associations: Seattle & WA State's Olympic Rental Association.
ORA has have great connections, affiliations, newsletter, many benefits to membership, all for very affordable rates.
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