“The Top 10 Best Rated Background Check Companies” written by Mike Marko
Worried that you may pick the wrong tenant for your rental property?
I’m sure you’ve heard the horror stories about those “bad tenants” that can ruin your business.
Bad tenants can give a lot of stress and cost a lot of money. And it’s difficult to effectively manage a rental property business if you have to deal with bad tenants.
Luckily, there is a process called background check. This process helps screen and filter rental applicants to help you pick the best choice. But if you have too much to do already... you won’t have the time to be able to properly screen tenants. That’s why many property managers select background check companies to help with the tenant screening process.
Therefore in order to save your precious time and money, we will talk about the best background check companies and how they could help you.
Know More About Background Check Companies
The key to running a successful property management company depends on the quality and types of tenants you have renting the properties you are managing. If your tenants are dependable, pay rents on time, and never damage the property they are renting then they would be considered an excellent tenant.
However having tenants that pay late rents, cause considerable damage to your properties are the types of tenants you want to avoid renting them the property.
Finding tenants that are dependable and pay rents on time is sometimes difficult when sorting through stacks of applications for your rentals. Your tenants and how dependable they are is the key to running a successful in a rental property business.
So how do you find the good tenants and screen out the potentially bad tenants from renting of your properties?
The best and most efficient way to find dependable tenants is by using a dependable background checking company when doing your tenant screening processes. When sorting and evaluating multiple applications for a rental property you need to have the best reports and information available to help you in your decision to find the best or most qualified tenant to rent the property. The best way to finding the best tenants is by conducting a background check on each applicant and comparing the results to find the most dependable to rent the property.
Before renting your properties you need to determine exactly what you would term a good renter vs a bad renter. In doing this you are easily able to set up the best criteria to compare multiple applicants to find the type of renter you are seeking for your properties. When you have determined the type of tenant you are seeking then using a background check company to help find those types of renters can be an easy process.
Why A Tenant Background Check Is Important
When renting a property you need to know the rental applicant as thoroughly as possible.
How do you do this?
Meeting The Tenant
Meeting with the tenant and conducting interviews is part of the process you undertake when getting to know your tenant. But to really know the history and financial stability of the applicants you are considering to rent the property, you need to conduct a more extensive background check and screening process.
Doing background checks on your own can be costly and net unreliable results. The best way to conduct background screening is to find a dependable company that specializes in tenant screening and produces quality reports detailing the background searches they specialize in.
As the property manager, your main responsibility in renting property is to find dependable tenants for the property. To do this you must require your tenant to undergo a tenant screening process to make sure that the information that they provided in their interviews and on their application is true. One of your responsibility as the property manager is to keep your rental properties and its tenants away from danger and an excellent way to do that is by conducting a background check as it can minimize the risk of having bad tenants.
A background check can speed up the process of the rental application. A complete background check will verify almost all of the information that the tenant has provided in their rental application form. The whole process and the result of the background check will keep your property and its tenant safe and can also protect you from liability and it discourages your tenants to hide something from you. A background check can give you even the dirty little secrets of a prospective tenant.
Let’s say that you accepted a prospective tenant and suddenly they cause a lot of troubles to your other tenants. Then you found out that the newly accepted tenant is a criminal. You could be sued for negligence if something bad happens to your tenants and not knowing about the new tenant’s criminal background is not a valid excuse.
What A Tenant Background Check Covers
When you conduct a background check on your prospective tenants it will disclose information about their rental history, work history, credit activities, and criminal records. All of the information that will be presented in the report could help you determine if they are worthy enough to be your tenant.
As the property manager, you have the right to access the information that you need from a prospective tenant. When the tenant fills out an application you need to include authorizations allowing you to conduct the background check you wish to run on each applicant. If you are seeking to run a credit check it is best to get a separate authorization signed by the applicant allowing you to run their credit for rental purposes.
However, the extensive amount of information included in the background reports should be used to determine if you will rent them the property only. Using any of the results of a background check against the applicant, in the case of discriminating the applicant based on age, gender, national origin, etc., is illegal according to Fair Housing Laws.
Since you’re the one who requested for the background check reports you are responsible for any misuse of the collected data.
Also, according to Fair Housing Laws, landlords or property managers are not allowed to deny a rental application based on discriminatory factors such as the tenant’s sex, religion, or nationality.
To conduct a successful background check, it is advisable to use services by background check companies. Background check companies can help employers, lenders, and property managers in determining if the person that they’re dealing with is giving them the right information.
Before you conduct a background check, check these tips of choosing the best Background check companies.
How To Choose The Best Background Check Companies
Don’t waste your time and money in using services by a background check company that is not providing reliable information.
Before You Start
Before you choose a background check company, make sure that the company is giving accurate background reports and their service is for a reasonable price.
Before you choose your preferred background check company, try asking these questions of yourself…
- Can they give accurate reports?
- How much do their services cost?
- And can they give the information that I need?
Causes of Inaccuracies?
The most common cause of background report inaccuracy is human error. When choosing a background check company, check their reviews on the internet. The best of background check companies usually have positive reviews.
As the property manager, it’s recommended to choose one of the background check companies that offer “Manual FCRA Interpretation”. This certification by FCRA ensures employers, lenders, and property managers that the background reports that they are giving are updated and accurate.
Also, the best background check companies can provide the information that you actually need. If you’re unsure about the necessary information, here are the common elements of a good background report of a prospective tenant:
- Credit Report
- Social Security Number Validation
- Nationwide Eviction Search
- Bankruptcy Search
- Judgment & Lien Search
- Nationwide Criminal Database Search
- U.S. Sex Offender Registry Search
- Global Homeland Security Search
- Employment Verification
- Residence Verification
Usually, background check companies charge their clients $15 for their services. However, some companies charge as much as $50 per person. Most likely you could expect that the contents of their background will be the same. In this case, just choose the background check company that is FCRA certified.
Top 10 Best Rated Background Check Companies
To better help you in choosing the best service for a background check, here are the top background check companies for you to evaluate.
The service of this background check company provides White Pages listings, public records, and social media information. Their services are also useful for helping people who have lost touch to find one another again and reconnect to restore lost relationships.
Instant Checkmate offers background check services. Their company allows their clients to search a wide variety of databases, including state and federal records, to collect information about themselves as well as their friends or relatives (and people you are doing business with).
Founded in 2007, BeenVerified offers affordable background checks. Their services are also useful for helping people discover, understand and use public data in their everyday lives.
Their company collects countless sources of public records and puts them in one report, which makes it easy for users to follow.
BeenVerified is definitely the go-to choice for public data access.
PeopleFinders allows its users to search for public records by name, email address or phone number. Aside from that, the services of their company are also useful if you need to run a large number of background checks.
Intelius is a widely known background check company that offer a reverse phone lookup. Their service lets the users determine who is the owner of a phone number and whether any public records are associated with that person.
MyLife is a website that provides a service for people who are concerned about the information on their background reports. One of their services allows you to monitors a person’s background report and to enhance or correct publicly available information.
CoreLogic SafeRent is a company that focuses on rental property businesses. Their services allow landlords or property managers to find out critical information about their tenants.
The background reports provided on their website will include information such as the prospective tenant’s rental history, criminal background, and other relevant details for landlords or property managers.
The USSearch.com is a people finder website based out of Washington. This website allows its users to purchase public record information such as name, address, criminal records, and more… depending on the information that they need
PeopleSmart provides its users a way to easily search for people by name, email address, or phone number. The service that they offer will help its users run background searches, as well as connect with their long-lost friends or relatives.
KnowX provides a service which lets its users to quickly and easily conduct a background check. You just input the applicant’s first and last name. Aside from that, they also offer a feature that allows their users to investigate property values before making real estate transactions.
Final Thoughts About Background Check Companies
In this blog post, we talked about background check companies. A background check can help you choose the right tenants for your rental property. Having the right tenants could help reduce problems. It can also provide a peaceful and safe environment for your other tenants. And when you have less to deal with regards to tenants, you can focus more on your other tasks as a property manager.
Follow the advice on how to pick the best fit of background check companies for your property management needs. Picking the right background check company will help ensure you improve your business profitability long term.
Use the comment section below for any questions or anything you would like to add about background check companies.
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