Tenant screening essentially entails carrying out a background check on a potential tenant in a bid to select the best potential tenant from several others. Other landlords not only carry out tenant screening but also tenant credit checks, which include finding out as much as you can about a potential tenant’s financial information. It is every landlord’s nightmare to enter into an agreement with a tenant who fails to maintain their property, makes late payments, or disturbs other neighbors.
In this article, we intend to explore the difference between background checks and credit checks and show you which one can help you filter out these kinds of renters.
Tenant Screening
Tenant screening also goes with other titles, such as Rental Background Check and Tenant Background Check. Every one of these processes entails carrying out a detailed investigation of an applicant’s personal history, rental history, and criminal history. A person’s criminal record will show you if they are registered sex offenders, and their rental history will show you if they are serial defaulters of lease or rental agreements. Based on the information you get from Tenant Screening, you can then determine if the potential tenant’s character is suitable and reliable enough for you to sign a rental agreement with them.
Tenant Credit Check
The primary focus of a Tenant Credit Check is to find out as much information as possible about their financial history and creditworthiness. A tenant credit check will show you if a tenant has a positive credit score, outstanding debts, and all information about their payment history. The details of a tenant credit check serve as key indicators as to whether an applicant can afford your property, make timely payments, and if they pose an eviction risk.
Background Check vs. Credit Check: How Do They Differ?
A tenant screening focuses on the potential tenant’s history, and a report includes the following:
- The tenant’s criminal history
- The tenant’s rental history
- The tenant’s employment and income verification
- The tenant’s eviction history
- The tenant’s verified identity to prevent identity theft and fraud
A tenant credit check is quite different, and it includes the following:
- The tenant’s credit history
- The tenant’s credit score
- The tenant’s current debt status
- The tenant’s past derogatory marks
- Any vehicle repossessions
Need Expert Guidance on Tenant Screening?
As a landlord, it is paramount to conduct tenant screening and credit checks before you can let an individual rent or lease your property. If you are wondering whether to do a background check or a credit check, contact Enforcer Pros. We can help with tenant background screening in Florida.