Did you know that insurance companies have a stake in who lives in your rental property? Many real estate investors pay higher premiums or can't find any coverage at all if someone with a criminal conviction rents from them.
As of 2015, Tennessee had the third-highest rate of incarcerated people, making it necessary for Nashville landlords to be cautious when someone submits a rental application. The best thing you can do to protect yourself is to run a tenant criminal background check before approving the application. Read on to learn all about the criminal background check process!
Start With Your Applicant's Information
One key thing you're looking for when running a background check is whether your prospective tenant is being honest with you. As a result, before you run the application, you'll want to include information that you can use to compare against the results you receive. Include questions about past addresses, employers, and a question about their criminal history.
On top of this, you'll need to get consent from the applicant to run the background check. Include the information:
- The scope of the background check (criminal, credit, employment, etc.)
- How you'll use the information
- The applicant's rights
Finally, have them sign and pay the application fee before running the check.
What's in a Tenant Criminal Background Check
Tenant criminal background checks are typically part of a more comprehensive screening report. It'll include information about the applicant's criminal history in addition to their rental, credit, and employment history.
The criminal background check itself is very comprehensive. In addition to checking the Tennessee sex offender registry, it'll check the terrorist watchlist, and criminal courts across the country. If your applicant has a criminal history, the check will include the following information:
- The type of crime
- The date of the crime
- The number of convictions
- Current legal restrictions
Results and Considerations
Most reports come back with a recommended outcome. As the landlord, you decide whether to approve or deny the application. Having a criminal background doesn't have to be an automatic denial, but you should consider it carefully.
For example, if someone was recently released from prison and is on the sex offender registry, that's a big risk. You may even have to deny it if your property is close to a school and they have a proximity restriction. On the flip side, someone convicted of petty theft while in high school 20 years ago is much easier to overlook.
Want Help With the Criminal Background Check Process?
In an ideal world, every rental applicant would come with a spotless criminal history.
The reality is that people are complicated, and some will have skeletons in their closet. You don't have to deny every single person who doesn't come back with a spotless criminal background check. Use that information to learn more about your applicant and make an informed decision.
Are you on the hunt for a Nashville property management company that can help you make your rentals a success? The professionals at Green Tree Property Management go above and beyond for our clients. Contact us today to learn how we can revitalize your rental!
