Finding a good tenant is crucial for any landlord. While credit checks and background screenings are essential, they don’t provide the whole picture. Do you want a key to unlock valuable insight from past landlords?
Here comes rental verification, but what is rental verification?
Rental verification is the backbone of secure and trustworthy tenancy arrangements. It involves the meticulous process through which landlords authenticate the backgrounds of potential tenants, ensuring a mutually beneficial relationship.
In this comprehensive guide, we’ll delve into everything you need to know about rental verification, from its purpose to the key questions to ask, ensuring you make informed decisions about your next tenant.
Let’s embark on a journey to unravel the complexities of rental verification and empower both parties with the knowledge needed to navigate the rental landscape effectively.
Why is Rental Verification So Crucial?
It is significant to determine whether your tenant’s rental history is accurate or not. If you find any falsified information, take it into consideration and make an informed decision.
With the help of rental verification, you can review the tenant screening report, which may include their payment history and maintenance issues, and know better if they’re the right fit for your rental property.
To better understand why rental verification is so significant for landlords, navigate the benefits of rental history and the potential drawbacks of not verifying renters.
Benefits of Rental Verification
Some of the helpful benefits are:
- You may have made an informed decision about to whom you are giving rent.
- You will be well aware of those renters who damage the property or pay late rent.
- You can get reliable tenants with the help of rental verification.
- Your property has been saved under verified tenants.
Drawbacks of Unverified Tenants
You must do rental verification to avoid getting into trouble. We’ve covered some potential drawbacks that you must consider.
- Unverified tenant history could lead to damage to your property.
- Face the issue of delayed rent, or maybe the tenant can’t afford the rent.
- Risk of renting those tenants with a history of noise complaints and issues with cleanliness.
Therefore, you can secure your investment once tenant verification is verified. But make sure to know about Canada’s rental income tax rate so that you can adjust the rent rate accordingly.
Process to Verify Tenant’s Rental History
The question lingers: How do you verify a prospective tenant’s rental history? How does rental verification work? Here are the key aspects you need to follow.
1. Request an Application
You need to ask permission before contacting the tenant’s previous landlord. Ask your tenant to sign an application that allows you to contact their previous landlord.
2. Contact the Previous Landlord
After obtaining permission, contact the tenant’s previous landlord and ask them about their last tenant history, like how long they have been living, whether there has been any delay in payment, or any property damage that occurred.
3. Verify the Information
Confirm the information that the landlord has provided. This way, you will have a clear understanding of the rental history.
4. Evaluate the Report
Now, it’s time to evaluate all the information and pick the best tenant for your property.
5. Make an Informed Decision
You’re ready to decide based on all the necessary details. Ensure you know about fair housing laws and follow them equally while evaluating each applicant.
After knowing how to verify the tenant, the question arises: How long does rental verification take? It usually takes 48-72 hours to complete the whole process. Real estate investors in Canada minimize capital gain tax and maximize their returns.
Questions to Ask in a Rental Verification Form
Before going into detail, let’s learn what a rental verification form is. A rental verification, or verification of rent, is a form that helps landlords find out a tenant’s rental history. Hence, landlords get to know whether an applicant is reliable and pays the rent.
Here are some questions to be asked that will assist you with the tenant’s behavior, financial stability, and any potential red flags:
- When did the tenant’s lease start and end?
- Did the tenant pay rent on time?
- Did the tenant have any pets or roommates previously?
- Did the applicant take care of the rental property?
- Was the property in good condition when the tenant left?
- Did the tenant violate any terms written in the lease agreement?
- Was the tenant making trouble for neighbors during their tenancy?
- Did you ever give an eviction notice to the tenant? If yes, then explain why.
- Did the tenant give any prior notice before leaving the rental property?
- Would you like to provide rent again to this tenant?
With the help of these questions, you, as a landlord, can easily recognize whether to give rent to the tenant and make an informed decision for your rental property. In contrast, if you are a foreigner and want to buy a property in Canada, you must follow the foreigners’ rules and get your dream property.
What Do You Do If the Tenant Doesn’t Have a Rental History?
There might be possibilities when a tenant doesn’t have a rental history. For instance, they are new to the area or have lived at their parent’s places, and so on.
In this scenario, you can ask these questions:
- Ask about the tenant’s behavior at their workplace and neighbors where they lived in the past.
- Check out their bank statement and any hazardous credit history so that you know about their financial stability to pay your rent.
- Please put in a larger security deposit to protect you from damages in case of any issue during the tenancy.
Final Thoughts
Rental verification is an easy, ongoing process that makes you hassle-free and stress-free while saving you time. It is essential to keep a record of tenants, which will allow you to make a wise decision.
If you are looking for the right tenant for your property, consider Dream Property Management and book a consultation right away!
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