Real estate owners or property managers who start the process of checking tenants need to know if the tenants or potential tenants are worthy to offer their property for rent.
The process of verifying tenants must consider the financial stability of the potential tenant, in order to avoid possible losses.
Checking tenants ensures that they are what they claim to be: for example, the landlord should ensure that the tenant’s income comes from a safe and legitimate source.
Why do landlords have to check their tenants?
There are several reasons why landlords should examine their potential tenants and be able to explore different approaches to how to check tenants.
One of the main reasons for checking tenants is to reduce the risk of fraud.
Nowadays, a normal tenant provides less information than the landlord can ask for. Therefore, intense and effective control is important to protect the owner from any possible fraud.
Examining the tenant also minimizes the risk of losing income for the landlord.
If the tenant or tenants are unable to pay the monthly rent, the landlord may face the implicit challenge of evictions, midnight moves or other similar issues.
In the worst case, the owner may suffer losses in court, trying to recover an uncollectible debt.
The only protection that the landlord has against a malicious tenant is the diligence performed in the verification process. Sometimes the legal contract is not enough either.
If the tenant has nothing in his name or cannot pay the moratorium damages in any form, in the end the whole landlord suffers and will pay the damages.
Therefore, effective examination can allow the landlord to avoid problems arising from the lack of insurance to tenants.
How can real estate owners check tenants?
Checking tenants can be done through several approaches.
The process allows the owners to find out concrete information about the people to whom they will give access to their property, and ensures the care of the property in an appropriate way.
One of the approaches on how to check tenants is to ask interested candidates to fill out a rental form.
From the application form, applicants can be asked to provide information on income in writing, thus helping to verify accuracy.
Potential tenants can be asked for consent to contact the employer for further checks and thus can check the income. For hired tenants, they can be required to provide various documents such as the presentation of proof of income through bank records, payroll or even the tax return.
However, the landlord is required to guarantee the full tenant the full confidentiality of these documents. This is where the tenant’s reluctance to provide such data often occurs.
For tenants who are self-employed, other evidence may be required, but they also contain sensitive data that may predict discomfort for the tenant.
These checks should be a standard applied to all potential tenants, regardless of their source of income.
So how can homeowners check their tenants in a way that doesn’t create discomfort, complies with legal rules, involves a relatively simple process, and yet guarantees security for both parties?
In order for property owners to check their tenants in a 100% safe and viable way for both tenants and they, a third party intervenes to facilitate the process in a simple and secure way.
This third party is made up of specialists who deal with the verification process.
To simplify the process as much as possible, we have developed an online tenant verification platform called RentGuard.
RentGuard is an online tenant verification platform designed to objectively intervene as a third party in this process.
Tenants will no longer have to provide personal documents to the landlord (eg financial statement data), and landlords will be exempted from the tenant verification process, based on RentGuard expertise.
All data recorded on the platform will remain anonymous to the parties involved in the process. RentGuard operators will analyze the data received from the tenant and generate a report that will be handed to the owners and that will contribute to their decision-making process.
Thus, both landlords and tenants will reach a common denominator.
Read more about RentGuard in our article: