In recent times, tenant-related frauds in India have been increasing and as a landlord, it is your responsibility to find suitable tenants. While renting out your property, you need to ensure that your tenants are qualified for handling or residing in your property. Choosing a bad tenant will only cost you more money which is attributable to non-payment of rent, property damage, and litigation fees. So, it is crucial to find the right tenant who can give you a stress-free and problem-free life. This is why tenant background verification is important. A tenant background verification gives you the insights you need to rent your house to the right applicant.
So, as a landlord, how can you perform a proper tenant background verification and screen the tenants to fight the right applicant?
How to do a proper tenant background verification?
1. Identity and Permanent address verification:
This is one of the most basic things you need for a proper tenant background verification. You need to make sure of your tenant’s real identity and stay away from fraudsters who use fake identity to get properties on rent. Also, while conducting physical visits to the given permanent residence address may not be feasible, you can still verify it with the help of someone you know in that area or by contacting that locality’s police station. They will help you verify the permanent residence address and the applicant’s reputation.
2. Credit and Employer verification:
Verifying your applicant’s ability to pay their rent on time ensures you peace of mind and saves you from a lot of hassles. If the applicant is employed, you need to verify it with his employer. Using the information provided on the original application, you can contact the applicant’s employer on record and confirm the employment status of the applicant and their stated income. You can also verify their previous employment if possible.
3. Verifying with his previous landlord:
This is one of the most crucial verification processes as it tells you everything you need to know about the applicant’s behaviour. Previous landlords serve as the best source of information for anyone looking to run a tenant background check. You can ask the previous landlord about the applicant’s behaviour and how good they are to work with. You can ask all the questions that will provide you insights into how good of a tenant they will be. This lets you know if that would pay rent on time, how they will treat the property, and more.
4. Police verification:
The law in India says that it is mandatory for a tenant to undergo police verification. To do this, you need to file for a police verification with particulars for the tenant and submit it to the nearest local police station. The police will use the information for a background check of the applicant which includes any criminal record.
5. Verify Personal references:
Verifying Personal reference is also important for performing a proper tenant background check. While often biased, personal references can get you some good information about the applicant. You can get to know about their character, manners, etc. This will help you decide whether they will meet your expectations as a tenant.
Tenant background verification is crucial because the last thing you need in your property is a problematic tenant who might cost you more money. However, this process might cost you a lot of time and money. This process is even more difficult to handle if you are an NRI. But by hiring a leading property management company like Housewise, you can solve this issue easily. As one of the best Property management companies in India, we are experts at finding good tenants. We interview the tenants, do background checks, security checks, run credit reports, and close the deal for you, while you relax at your home.
Also Read: Landlord Legal Rights in India