The single greatest and costliest mistake a landlord can make is to neglect carrying out a detailed screening of tenant applications.
Many landlords neglect to conduct adequate background and credit checks on prospective tenants. It is simply amazing to see houses, condos, and apartments worth up to one million dollars being handed over to complete strangers simply on a handshake.
Conscientious landlords screen tenants. Credit record searches and background checks are common instruments, and many landlords use them routinely. That said, it is truly amazing to see just how many landlords fail or neglect to conduct even cursory checks on applicants wanting to rent property valued at hundreds of thousands and even millions of dollars.
Not only is the failure of landlords to conduct simple credit and background checks bad business that inevitably results in predictable landlord-tenant disputes, it's also a factor in the depreciation neighborhoods suffer and how adjacent property owners can actually lose value. I can't stress strongly enough how important it is to check out tenants.
Conducting a credit and background check on a prospective tenant is a fundamental step in income property investment. Anyone contemplating purchasing rental property should do this.
Use an accredited credit reporting agency like TenantVerification.comand follow through with verification. It works extremely well in weeding out good tenants from bad ones.