According to ZipRecruiter.com, Raleigh landlords make an average of $84,839, with the top earners even raking in up to $146,777 a year!
If you also want to earn a hefty rental income, you must first find reliable renters who can pay rent on time and respect your property. One of the best and most effective ways to achieve this goal is through a comprehensive tenant background check that includes more than just credit checks.
PMI Triangle discusses tenant screening in Raleigh and what your background check process must entail, so please read on.
Credit Checks
Credit checks involve pulling prospective tenants' credit score information and credit reports. They can help determine renters' eligibility and give you insights into how financially responsible they are.
For instance, a good credit score and clean report indicate they make wise financial decisions and settle their dues on time. If so, they will likely allow you to collect rent on time and without any issue.
Employment and Income Verification
Verifying your potential tenants' employment status and income sources allows you to confirm their identity. Moreover, it can help you determine their ability to afford the rent you charge.
Also, remember that, as of 2024, the average American owes $22,713 in personal debt, according to Money.com. For this reason, you should use these checks' findings and compare them with those of credit checks. Doing so can help you determine whether a prospective tenant earns enough to pay rent after settling their other financial obligations (e.g., loans).
Rental and Eviction History Checks
Rental history checks can give you valuable insights into how applicants are as renters. For example, you can learn whether they were good tenants who:
- Always paid rent on time
- Never gave their previous landlords headaches
- Were excellent neighbors
An eviction history check is just as crucial, as it lets you confirm if prospective tenants have ever gone through an eviction in Raleigh or elsewhere and, if so, how many times they had. A single eviction that occurred many years ago may not be an issue. However, multiple recent ones may indicate they have failed to pay rent on time or did something to break their last lease agreements.
Criminal Background Checks
According to NCSL.org, about one in three Americans have a criminal history. While many are for minor infractions or misdemeanors, others are for severe felonies.
So, one of the most crucial tenant verification tips is to screen your tenants for severe criminal convictions. The last thing you want is to rent to individuals who may harm your property, neighbors, and community.
Let PMI Triangle Help With Your Tenant Background Check Process
Pulling prospective tenants' credit scores and reports, verifying their employment and income, reviewing their rental and eviction history, and checking their criminal conviction backgrounds are the most crucial aspects of a thorough tenant background check. Please don't skip any of them; they can help you ascertain your potential renters' qualifications.
PMI Triangle is happy to handle all your rental applicant evaluation tasks. Our full-service solutions include comprehensive renter screening that complies with Raleigh tenant laws. We're also proud to be part of PMI, a larger franchise boasting over 20 years of industry experience and managing over 20,000 rental properties.
Speak with us today for a free property consultation!
