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Most businesses depend upon background checks. The benefits of conducting background checks on an applying renter is paramount, particularly in today’s economic landslide.  A background check for a prospective tenant is much the same as if you were determining whether to hire the person as an employee.

Background checks reveal credit history, credit report, any small claims or misdemeanor actions against the applicant, and the details of any larger criminal  felonies or judgments against the potential renter.  This  includes past addresses and places of employment.  When you have a print out of this information, you have a portrait of the applicant.  You know his financial bracket and arrearages, any legal issues both large and small, and if he has judgments filed against him for not meeting his obligations.

An employer should check out his applicants for work for the same reasons, plus reviewing the opinions of previous employers, co-workers, teachers and professors regarding the person’s reliability, honesty, work ethics and personal character and disposition.  This can help avoid a possible impasse later in the employee’s tenure that strains your work project or other employees under your management. Every employer wants a team player who can take criticism; however, they can be elusive when you are in the interviewing process.

If the employee is likely to file charges or legal action against his employers, this information needs to be carefully evaluated, or your company could find itself behind the 8 ball with an employee who is resistant to change of duties or even termination of his employment and prefers to embroil you in a lawsuit instead of quietly stealing away to another vocation. This can be harmful financially and to the company’s reputation. The public usually remembers only the charges made in a discriminatory lawsuit.  They  seldom remember the judicial outcome, so a company’s reputation takes a hit even if it wins. This costs the company funds in attorney fees and litigation costs.   It costs even more in the loss of the company reputation.  Knowing facts from a credit and criminal background check saves your company funds by hiring correctly in the first place.

Background checks on  potential renters spell prevention for the landlord.  By being aware ahead of any agreement signed with the renter of outstanding debts or criminal legal issues, you can save yourself ulcers and the respect of the rental’s neighborhood.  If you are tempted to overlook a background alert because your rental has stood vacant for a while, do not cave in!  If you refuse the renter, you have only lost that sector of rent.  If you rent to him and he proves himself unworthy of your consideration, you will quickly find bills for negligent community fees draining your pockets, and perhaps not even receiving timely rent from which to pay those community penalty fees for garbage, littering, mowing and noise violations.

If you are considering being a landlord, first learn your state’s laws and statutes regarding rental agreements, eviction timing and notice requirements.   Be competent on how service of these is affected  (by yourself, certified mail or a law enforcement officer).  Some states  provide printed forms for landlords to use, but others require you to have a rental attorney. Ascertain the cost of filing each document and having them served before you have the need.

Look into cost of landlord insurance and requirements in your state. By now your mind is clicking and ringing like the old cash register, and should alert you to protect  yourself by knowing the law in your state and what is required to rid yourself of a deadbeat or vandalizing tenant.