If you are a landlord, you know that finding the right tenant is crucial. One of the most important steps in finding the right tenant is conducting tenant screening. Tenant screening is the process of verifying a tenant’s identity, employment, rental history, and creditworthiness. This process can be time-consuming and can involve a lot of paperwork. To simplify this process, many landlords turn to tenant screening services. In this blog post, we will discuss the pros and cons of using a tenant screening service for your rental property.
Pros of Using a Tenant Screening Service
Time-Saving: Tenant screening services can save landlords a lot of time. They take care of the paperwork, background checks, and other screening processes, allowing landlords to focus on other aspects of their business.
Know Legal Requirements: Tenant screening services are familiar with the legal requirements of each state, including Oregon. By using a reputable tenant screening service that is knowledgeable about Oregon landlord-tenant law, landlords can ensure that they are complying with all legal requirements and avoiding potential legal issues.
Comprehensive Screening: Tenant screening services typically offer comprehensive screening packages that include credit checks, criminal background checks, eviction history, and employment verification. These services can help landlords make informed decisions about potential tenants.
Consistency: Tenant screening services use consistent screening procedures for all tenants, which can help landlords avoid discrimination lawsuits.
Legal Compliance: Tenant screening services are familiar with local and federal laws regarding tenant screening. By using a tenant screening service, landlords can ensure that they are complying with all legal requirements.
Reduced Risk of Bad Tenants: Tenant screening services can help landlords avoid bad tenants who may cause damage to the property or cause problems with other tenants.
Cons of Using a Tenant Screening Service
Cost: Tenant screening services can be costly. The cost of a comprehensive screening package can range from $30 to $100 per tenant. This cost can add up, especially for landlords with multiple rental properties.
False Positives: Tenant screening services can sometimes provide false positives, which can lead to landlords rejecting potentially good tenants.
Limited Personal Contact: Tenant screening services do not provide landlords with personal contact with potential tenants. This can make it difficult for landlords to get a sense of the tenant’s personality and how they will treat the property.
Limited Control: Tenant screening services do not provide landlords with complete control over the screening process. Landlords must rely on the screening service to provide accurate and reliable information.
Privacy Concerns: Tenant screening services may collect personal information about potential tenants, which can raise privacy concerns.
FAQs
What is a tenant screening service?
A tenant screening service is a company that performs background checks on potential tenants. These services are used by landlords and property managers to verify a tenant's identity, creditworthiness, rental history, and criminal history.
What does a tenant screening service typically include?
A tenant screening service typically includes a credit check, criminal background check, rental history verification, employment verification, and identity verification. Some services may also offer additional screenings, such as eviction history or sex offender registry searches.
How do tenant screening services obtain information on potential tenants?
Tenant screening services obtain information on potential tenants through a variety of sources, including credit reports, criminal records, employment verification, and rental history databases. Some services may also use social media or online public records to gather information.
Are there any legal considerations landlords should be aware of when using a tenant screening service?
Yes, landlords should be aware of fair housing laws and ensure that they are not discriminating against potential tenants based on protected characteristics, such as race, gender, or disability. Landlords should also comply with state and federal laws regarding tenant screening and the use of personal information.
How much do tenant screening services typically cost?
The cost of tenant screening services varies depending on the provider and the level of screening required. Basic screenings typically cost between $20 and $40, while more comprehensive screenings can cost up to $100 or more.
How can landlords choose the right tenant screening service for their needs?
Landlords should research and compare different tenant screening services to find one that meets their specific needs and budget. It is important to look for a reputable service that complies with applicable laws and provides accurate and timely information. Reading reviews and asking for recommendations from other landlords or property managers can also be helpful in choosing the right service.
Conclusion
Using a tenant screening service can be beneficial for landlords who want to save time, reduce the risk of bad tenants, and ensure legal compliance. However, landlords should also be aware of the potential downsides of using a tenant screening service, including cost, false positives, limited personal contact, limited control, and privacy concerns. Ultimately, landlords must decide whether the benefits of using a tenant screening service outweigh the costs and risks.
