TENANT BACKGROUND CHECKS 101: THE PREVIOUS ADDRESS TENANT HISTORY

TENANT BACKGROUND CHECKS 101: WHY THE PREVIOUS ADDRESS TENANT HISTORY (PATH) IS A CHEAP AND EASY WAY TO SEE IF YOUR PROSPECT IS TELLING THE WHOLE TRUTH

The Previous Address Tenant History, or PATH report, is cheap –only about $6, a cost that is charged against the application fee is most cases.

But don’t let the low cost fool you — this report offers a lot of bang of the buck!

The Previous Address Tenant History:

• Lists each address that is associated with the applicant’s social security number.
• Lists the date ranges at each address.

With this information, the landlord can:

• Evaluate if the prospect is telling the truth on the application.
• Eliminate shared names from the criminal reports, which are not referenced to social security numbers.
• Discover if the prospect lived outside the area of the criminal history report ordered so the landlord can broaden the search.
• Gain another tool to determine if the social security number provided by the applicant is fraudulent.

Remember to order tenant background checks for all of the adults who will be sharing the property. 

Follow this link to see a sample Previous Address Tenant History.

American Apartment Owners Association offers discounts on products and services related to apartment management, including tenant debt collection, tenant background checks, technology, insurance and financing.  Find out more at www.joinaaoa.org.

Premium and PremiumPlus members receive discounts on Tenant Background Checks.

For more information on Tenant Background Checks, see our interview with Fidelity Information Corporation CEO Jeff Cronrod,TENANT BACKGROUND CHECKS:  LITTLE KNOWN WAYS TO AVOID COSTLY MISTAKES.

This exclusive interview is included on the American Apartment Owners Association’s CD series, Real Estate Investment Secrets, twelve exclusive interviews with industry experts that will supercharge your ability to locate the best investment properties and manage or sell them for maximum profit. 

Real Estate Investment Secrets is available exclusively through the American Apartment Owners Association. To purchase a copy, visit www.joinaaoa.org.  Join as a PremiumPlus member, receive all the benefits of membership, and this CD series is our gift to you.

For tips on how your tenant background check can affect your chances for recovery of unpaid rent, check out our series on the blog “Seven Vital Tips to Help You Collect Your Tenant Debt”. 

Check back for next week’s feature, ”Everything You Need to Know Before Hiring a Property Management Company“, with Rodney Trepess, CEO, All Property Management.

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Filed under: AAOA Forum, Credit Screening

This entry was posted on Wednesday, December 5th, 2007 at 12:36 pm and is filed under AAOA Forum, Credit Screening. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. IS YOUR LEASE APPLICATION FALLING SHORT? said at March 4th, 2008 at 8:06 pm

   [...] Previous Address history gives you the basis for deciding which criminal databases to search, allows you to cross-check against the PATH report and other information provided to avoid fraud, and gives you current and previous landlord information for references. [...]

2. Anonymous said at March 15th, 2008 at 1:10 pm

   [...] The only information that can distinguish a person on a criminal report is full legal name (See What’s in a Name), a full and accurate date of birth, and accurate address information (See Previous Address Tenant History).  [...]

3. AAOA - American Apartment Owners Association » Avoid This Tenant Debt Collection Nightmare said at July 31st, 2008 at 12:05 pm

   [...] What screening reports and cross-checks (criminal history, credit, and previous address history) were used? Click here for information on the P.A.T.H. Report. [...]

4. AAOA - American Apartment Owners Association » Insider Secrets for Getting the Best Tenant Credit Reports said at August 28th, 2008 at 5:53 pm

   [...] To set up an inspection, contact AAOA customer service at 866-579-AAOA (2262)    Click here to learn more about tenant screening, including a list of what types of reports are available [...]

5. Your Biggest Tenant Screening Mistake | AAOA - American Apartment Owners Association said at July 13th, 2009 at 11:07 am

   [...] Your Biggest Tenant Screening Mistake Is the Tenant From Hell Moving Into Your Unit?   You hear the stories from other landlords.  “My tenant skipped out.”  “My tenant destroyed the property!”   So, where do these problem tenants go?    They are out there, looking for another rental.  And, chances are, they’re not telling you the whole story. Problem tenants repeat the pattern over and over because they learn how to dodge.    Do you know how to spot them?   “It’s the biggest mistake we see.  And we see it over and over again,” begins Bill Gray, with Rent Recovery Services. “We get a file for collection,” Gray continues, “but the information on the application is incorrect. The references don’t check out.  That’s when the landlord admits they never called, or they unknowingly got a glowing ‘landlord’ reference from one of the tenant’s friends.”   Due diligence is the single most important factor to tenant screening in today’s market.  A problem tenant costs more than a vacancy.  Be prepared to do some work when it comes to verifying the application.    Property managers see these problems frequently, and develop their own techniques to weed out these applicants.  One manager shared with us that he has posed as a new renter when calling current and previous landlords as a guise to see if the reference is legitimate.  “Once, I asked the reference if his unit was available to rent, but the ‘landlord’ said he didn’t own a rental.”   The applicant may be attempting to rent your unit before his landlord files for an eviction, or before that eviction shows up on screening reports.   Another way to catch the applicant in a lie is to order the Previous Address Tenant History report.  Check the addresses listed on the application against the verifiable addresses and dates from the PATH report to uncover discrepancies.   Landlord references aren’t the whole story.  Valid, current, emergency contact information is crucial to collection efforts, especially now when so many tenants are moving in with family members to save money.   If you are shy about calling references, consider hiring a property manager.  You’ll save money in the long run when you don’t rent to the tenant from hell.    “I’ve always said that tenant debt collection begins when you meet the tenant,” Gray continues. “You don’t want to be trying to collect debt from a complete stranger.”    See our feature, The Previous Address Tenant History. [...]

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