It's official: evictions in New Hampshire have returned to pre-pandemic levels. As a landlord, what measures are you taking to prevent them?
If you've been in this business for a while, you know it all begins with the background check. This gives you a better idea of who you're renting to, helping you identify trustworthy tenants. A background check will show:
- The applicant's financial status
- Rental and eviction history
- Criminal background
Not sure how to run a tenant background check in Seacoast, NH? Read on to learn more about this essential process!
Obtain Written Consent
In New Hampshire, you need written consent before running a background check. You can include it as part of the rental application or as a separate form. If it's the former, the application must have a signature space.
The form should also let the tenant know they will have to pay the screening fees. New Hampshire law doesn't set a limit on what you can charge for these fees. The fee is non-refundable.
Collect the Necessary Information
The success of a background check depends on the data you provide. This is why your rental application should, at a minimum, ask for the following:
- The applicant's name
- Date of birth
- Government-issued ID
- Social Security number
- Contact information
- Proof of income
Optional renter verification steps include asking for references from an employer or previous landlords. The more documentation you ask for, the less likely your applicants will be to forge it.
Choose a Screening Service
Most landlords rely on screening services to go through the tenant application review. Screening fees tend to be between $25 and $75. Choose a service that's approved by the Federal Trade Commission.
Make sure your screening service runs a criminal background check as well. In New Hampshire, criminal records are public. This can be a key factor in reducing your liability and ensuring the safety of your tenants.
Run a Credit Check
If your screening service doesn't offer credit checks, you can request them yourself. The three major credit reporting bureaus are:
- Equifax
- Experian
- TransUnion
A credit check will tell you if an applicant has payday loans or unpaid rent. This can be a big part of confirming their financial status. That said, these reports no longer include tax liens and evictions.
Check References
The final step in this landlord screening guide is to check all references. Anyone can fake a pay stub or stop a landlord from taking them to court. Calling their references may reveal something that's not public record.
If you have many applicants, this may be a daunting process. If you don't want to do it yourself, hire a property management firm. Keep in mind that bad tenants often bet that you won't go the extra mile.
Need Help With a Tenant Background Check?
These background check tips should help you separate the wheat from the chaff without violating any rights. That said, if you want to ensure an error-free tenant screening process, it's best to outsource it to the pros.
At PMI Green Rock, we use a screening process that includes a thorough tenant background check. If we have to evict a tenant that we screened, we'll waive any fees associated with the process, up to $2,000!
Contact us here to learn more about our property management services!
