With the technology and information available through online resources, checking out potential tenants means more than running a simple renter credit check. Information available through rental screening services includes rental history, criminal background, credit checks and much more. This is why it is very important to find the right tenant screening service that can provide you with accurate, up-to-date information on tenants.

Making the most of tenant screening includes choosing resources that can help you sort through the information provided by a tenant credit check or rental history check, and use it to determine whether a prospect is an acceptable risk. Some resources include:

1. Organizations for apartment owners and renters.

2. Tenant screening services that also provide tips on the in-person part of screening.

3. The Better Business Bureau (BBB), where you can find listings of the best screening services.

Action Steps
The best contacts and resources to help you get it done

Explore online tenant screening tips to sort through the jargon

Many people know how to use a tenant screening service to collect information, but you will also need to get beyond facts on paper when you meet the tenant. Learn how to get the most information from a tenant over the phone and in person.

I recommend: The Tenant Screening Tips from Free-Legal-Documents.com provides good tips on how to use your interactions, plus the information you collect, to decide whether a prospect is the right fit for your building. AGoodTenant.com provides a comprehensive quick reference guide on all topics related to tenant screening.

Use organizations that provide information on the best tenant screening services

There are many organizations and associations online and in person where you can connect with other landlords and property owners to share tips and get the latest information on rental credit check practices and other relevant topics.

I recommend: The American Apartment Owners Association is an organization where you can access many tools, including a tenant registry and many articles on relevant renter topics by signing up for a free membership. The Landlord Association offers many tips and comprehensive articles on topics that include tenant background checks. Some information and resources are available without membership.

Choose tenant screening services that are listed with the BBB

The personal information you collect in a tenant background check is sensitive and subject to many regulations. You want to make sure your screening service provides you with accurate and reliable information, so you can make an informed decision. If a company is affiliated with the BBB, you know the service you get will be the best.

I recommend: Tenant Verification Service is an accredited online screening service that provides landlords, realtors and property managers the tools they need to choose a tenant or client. Tenant Data Services is another BBB listed business that can provide you with comprehensive financial, rental and criminal history reports.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  The information provided by a rental background check can be a lot to sort through. At the very least, pay attention to the most important topics. Be on the lookout for reported damages, noise complaints and unpaid balances.

Most experienced landlords will tell you it’s better to have no tenant than a bad tenant. Screen each tenant with the same objective standards to ensure sensible business-based decisions – and to keep from violating Fair Housing Act (FHA)/Fair Credit Reporting Act (FCRA).

When screening commercial applicants, you’ll focus on the company’s history and information; when screening residential applicants, focus on the individual’s info. To effectively screen tenants:

1. Require prospective tenants to submit rental application with proof.
2. Verify all information via phone calls and background/credit checks.
3. Comply with fair housing/fair credit/Patriot Act laws.

Action Steps
The best contacts and resources to help you get it done

Get the info and proof

Make sure applicants provide contact info for three prior landlords. Don't rely only on the current landlord's recommendation – check with previous one(s), too.

I recommend: Find rental applications at LawDepot: Residential Application or LawDepot: Commercial Applications.

Investigate applicant histories

Access credit reports with the applicant's name, address and social security number. For a commercial applicant, you'll need a business license/Federal Tax ID number to search. The more information you have, the more you can discover. Public records, accessible by anyone, include real estate, bankruptcies, tax liens and criminal histories.

I recommend: Visit TransUnion, Equifax, and Experian. Experian Small Business helps you assess possible commercial tenants. Use Intelius to screen residential applicants. Check out CitiCredit for a tenant screening costing $9.95 – with no membership/setup fees.

Call in the pros

Find a reputable tenant-screening company, and leave the in-depth assessments to them. Companies can screen by sexual offender registry, criminal records, SSN verification, and more.

I recommend: At ATS, screen individuals or businesses. If you routinely screen tenants, consider joining Landlord2Landlord (L2L), founded by a landlord in 1994 to eliminate problem tenants and unpaid rent. They offer screening, forms, and so much more.

Follow the law

Watch what you say/do when assessing prospective tenants.

I recommend: Every Landlord's Guide to Finding Great Tenants (plus 40 useful forms on CD) is a must-have for any landlord – the e-book is $14.99, or the paperback $16.99 plus shipping. Go to L2L to learn what the FCRA means to you.

Conduct Patriot Act search

Under the USA Patriot Act, the Office of Foreign Assets Control (OFAC), a government watch-list/database of terrorists/criminals around the world, was created. This law requires landlords to conduct the OFAC Patriot Act search on individuals (by name) and businesses (by biz name).

I recommend: Go to OFAC-IQ to search for people/companies with whom you should never conduct business.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Be proactive, not reactive: Getting a bad tenant evicted in a long, costly process.
• •  In most states, you can legally charge the applicant an application fee to cover the costs of screening – check with your state laws for specifics.
• •  Require income proof through tax returns, bank statements, and paycheck stubs.
• •  Keep written records of all correspondence with credit agencies, screening firms and tenants.
• •  Federal law prohibits housing discrimination based on race, color, national origin, religion, sex, familial status and physical/mental disability. Some states have additional anti-discrimination laws.
• •  The FCRA requires you to notify both commercial and residential applicants in writing if any information in their credit reports led you to deny renting them property or to request additional security deposits.

When you own or manage residential properties, it is vital to have a tenant screening service in place to check out potential tenants. While many managers already use tools such, as a rental history report, renters credit check and other documents to determine if the tenant is an acceptable risk, tenant screening services can do all that and more with just one simple account.

The pricing and costs of tenant screening depend on the extent of the services you would like to include. Some of the checks included with a tenant screening service include:

1. Getting a tenant background check.

2. A credit history report.

3. Rental history of the tenant applying for the apartment.

Action Steps
The best contacts and resources to help you get it done

Start with tenant credit checks to gather information

Many landlords and property owners looking for new tenants will begin with a credit check because it gives the leaser plenty of financial information. With a credit check, you can find out how tenants pays bills, whether they pay late, and whether they have a lot of outstanding debt. A tenant credit check costs $10 to $20 per report.

I recommend: Citi Credit Bureau provides tenant credit checks that can be done completely online without signing up for additional memberships or services. Simple Screening provides a comprehensive credit check in addition to other tenant services, such as eviction searches and criminal reports.

Save money by getting a single rental background check

Tenant screening services can provide you with a large amount of information on a single tenant. But if you only need to know specific information, getting either a background check or credit check might be all that's necessary. Simple rental background checks only cost $14 to $45 per person.

I recommend: Background Check Systems is another company that can provide tenant background checks, and also offers additional information that a simple credit report cannot always provide. TenantChecker.com offers criminal, financial and eviction information with its background checks.

Choose a full online tenant screening package to get the most comprehensive information

If you want to know everything about your tenants before you let them rent from you, a full service tenant screening package can provide you with basic information, plus criminal and credit checks. These packages typically cost $45 to $175, depending on the type of information provided.

I recommend: American Tenant Screening offers many packages that cover a range of information, including credit checks, background checks and more. E-Renter offers affordable options for individual landlords as well as having commercial accounts available.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  A renter credit check is not only useful for finding out whether prospective tenants can pay their bills on time, but it is also useful for finding out if tenants can really afford the amount of rent you charge. Make sure you use a rental credit check carefully, to understand a tenant's financial capabilities.

Tenant screening is an important method through which rental companies and landlords can place the best potential tenant with the best rental property. The process utilizes objective standards to produce the most lucrative and sensible decisions from a business standpoint. As with other industries, real estate has its own terminologies, and tenant screening comes with its own jargon and key terms. To maintain professionalism and unbiased perspectives, it can help to become familiar with and use tenant-screening key terms.

Action Steps
The best contacts and resources to help you get it done

Credit check

A credit check, also known as a credit report once the check has been performed, offers a plethora of information on a potential tenant. In addition to finding out basic financial information, landlords and lessors can see how tenants pay bills and utilities, if they are able to make payments in a timely manner and how much debt they have.

I recommend: The information sought in a credit check and found in a credit report is explored at MyFico.com.

Fair Housing Act

Also known as the Fair Credit Reporting Act (FCRA), the Fair Housing Act (FHA) prohibits discrimination against individuals with respect to the sale, rental or financing of homes and dwellings on the basis of one's race, color, national origin, religion, sex, status of the family or handicaps or disabilities.

I recommend: Hud.gov discusses the Fair Housing Act in detail.

Public records

Public records categorize and organize the information of individuals as filed or recorded by government agencies, including local, state and federal governments. They are created by government agencies or the individual and maintained by the government.

I recommend: An introduction to public records research may be found at VirtualChase.com.

USA Patriot Act

The USA Patriot Act is a government database which organizes and categorizes the terrorists/criminals around the world. This law, regulated by the USA Patriot Act, requires landlords to run the OFAC Patriot Act search on individuals and businesses.

I recommend: Accurate screening in line with the USA Patriot Act is explained in detail at AccurateScreening.net.

Background check

Landlords and rental agencies may choose to conduct a background check on their potential tenants. These offer extensive information on tenants, including criminal records, commercial records and financial records.

I recommend: To learn the benefits of a tenant background check, tenant screening and what information can be found in such a search, visit CitiCredit.net.

Better Business Bureau

The Better Business Bureau is a network of organizations that have organized themselves in order to create a fair and effective marketplace for both businesses and consumers. The Better Business Bureau, or BBB, provides a variety of information on businesses and organizations, including business reliability, business practices, complaints and disputes and is useful when leasing, renting or selling corporate rental space.

I recommend: Detailed information about the Better Business Bureau can be found at BBB.org.