In the United States, property crime is much more common than violent crime, but either can affect rental properties. Not all crimes at a rental property can be prevented, but tenant background checks can help.
There are legal and dangerous risks of not completing background checks for every prospective tenant. Read on to learn why you should always run tenant background checks.
1. Keeps the Community Safe
One of the main reasons you should never ignore tenant background checks is because you have a responsibility as a property owner to keep the community safe.
A criminal history is not a valid reason to deny a prospective tenant. To make a valid and legal decision, a landlord must assess every applicant's criminal history on a case-by-case basis.
2. Protects You From Liability
Even an instant tenant background check will set a property owner up to receive valuable information. Without checking, you could be liable if something were to go wrong.
For example, if a crime happens in your building and a tenant is responsible, you could be held accountable if you did not run a background check.
A rental property tenant background check can help you decide to accept or deny an applicant. The Fair Housing Laws in Pittsburgh say that an owner can deny an applicant based on criminal history if they prove the decision is for the safety of the community.
If you were to deny a prospective applicant based on a discriminatory factor, you could be sued. Never use criminal history to cover up a discriminatory reason for denying an applicant.
To avoid being held liable, it must be clear that you rejected an applicant based on the same screening material every over applicant went through. In case of a future dispute, hold onto the criminal report.
3. Reduces Tenant Turnover
The best tenant background check can help a property owner reduce tenant turnover. Requiring a background check will lead to applicants putting in the effort to meet the criteria of your property.
In turn, these applicants may stay longer or renew their lease when the first one is up.
4. Ensures Legal Compliance
When you conduct tenant background checks, you are ensuring that you don't violate any laws. For instance, if your property is a certain distance from a school, renting to a sex offender would be illegal.
5. Promotes Honesty
Like we said, having a criminal history is not always grounds for denial. By explaining to a tenant that you must run a background check, they are more likely going to be honest about their record.
This gives them the floor to explain their past actions. As a rental property owner, you'll have a better idea of a prospect's specific situation.
Always Require Tenant Background Checks
There is a lot of legality behind requiring tenant background checks. Not only can they help you stay within the law, but they can also keep the community safe and protect you from liability claims.
If you continue to neglect tenant background checks, you could run into major issues down the line.
Protect yourself and your property by hiring a full-service property management company in Pittsburgh that can handle tenant background checks and more. Contact us today to learn about all of the ways we can help you.
