With Monmouth County's excellent health system, highly rated public schools, and numerous outdoor activity opportunities, it is no wonder Niche.com ranks it as one of New Jersey's best places to live. All these, plus the fact that one in every four of the county's residents is a renter, makes it an ideal place to be a landlord.
As a new Monmouth County landlord yourself, that's good news, as they indicate more prospective renters. However, to be a successful landlord, you must conduct tenant screening. It's your ticket to finding high-quality renters.
Our team at PMI Inspired has shared insights and tips regarding the tenant background check and rental application process, so read on.
Perform All Critical Tenant Background Checks
Comprehensive tenant screening enables you to identify ethically, financially, and morally responsible tenants. However, no "single" background check can reveal all these insights. Instead, you must perform several screening steps to glean pertinent data to gauge a prospective renter's qualifications and viability.
One is a credit score assessment, which gives insights into a prospective renter's creditworthiness and financial responsibility. Another is an income/employment check, which can help you verify an applicant's financial capability and stability.
You should also perform rental history and landlord reference verification. It can assist you in determining whether an applicant duly performed their legal and optional tenant responsibilities in the past. It can also help you confirm whether a prospective renter has an eviction history.
Don't forget to conduct a criminal background check, either. According to NCSL, about 77 million Americans have a criminal record. So, you want to know if your applicants are among these individuals and, if so, if their criminal history indicates that they could be a risk to your:
- Property
- Other tenants
- Neighbors
- Your community or neighborhood
Implement Fair Tenant Screening Practices
Please ensure your tenant screening policy adheres to all applicable fair housing laws. An example is the New Jersey Law Against Discrimination (LAD). It prohibits landlords from deciding who to rent out to (or not rent out to) based on an applicant's:
- Ancestry, color, nationality, national origin, and race
- Creed
- Domestic partnership, marital status, civil union status, or family status
- Sex, gender identity, affectional or sexual orientation, and gender expression
- Source of lawful rent payment or income
Always Ask for Consent First
You have the right to perform the above tenant screening steps, but renters also have the right to give you their consent first. You can ask for their permission by including a consent letter in the application form. Under the Fair Credit Reporting Act (FCRA), you can only conduct background checks with prior consent from the subject of the checks.
Let PMI Inspired Help With Your Tenant Screening Policy
Now that you know more about the best practices for tenant screening, you should add them to your list of strategies as soon as possible.
Alternatively, consider partnering with our property management company, PMI Inspired. Our full-service solutions include comprehensive tenant screening and placement services. With our team's expertise, state-of-the-art knowledge, and the support of PMI, our parent company with over two decades of industry experience, we can help you find quality tenants for keeps.
Drop us a line today for a free consultation and learn more about what we can do to help your Monmouth County rental succeed!
