TENANT BACKGROUND CHECKS: How-To Tips for Tenant File Maintenance

Screening the tenant before you rent is only half the battle. Circumstances can change, and your ideal tenant can become a potential rent collection problem. Maintaining a current and complete tenant file is a simple way to protect your valuable investment. 

Remember, the sooner you are aware of a potential problem, the sooner you can gain control and minimize your losses.

Here are some tips for Tenant File Maintenance:

Track Changes in Payment Method.

• If a personal check is used, photocopy it each month.
• Note changes in names on each check. Relationship changes are the single largest cause for failure to pay rent.
• If you do need to take legal action, your diligence would not be wasted. The bank information will be crucial in helping to recover your money judgment.

Track Changes in Employment

• Require your tenant to update you when their employment status changes.  Note the new employer’s name and address.

Credit Report Updates

• A basic credit report should be run every 12-24 months on each tenant. This is an inexpensive way to see if he has been paying bills on time, going into more debt, and may even indicated if he has been shopping for another apartment or even a mortgage for a home.

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.

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”.

Have tips to share?  Please post your comment.

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Filed under: AAOA Forum, Collections, Credit Screening

This entry was posted on Thursday, January 17th, 2008 at 9:34 am and is filed under AAOA Forum, Collections, 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. Tenant Screening Lessons from the Trenches said at March 3rd, 2008 at 12:22 pm

   [...] Thorough tenant screening is only half the battle. You also need to know how to maintain current and complete tenant files.  Learn how in How-To Tips for Tenant File Maintenance. [...]

2. AAOA - American Apartment Owners Association » Avoid This Tenant Debt Collection Nightmare said at July 31st, 2008 at 1:27 pm

   [...] the file updated at regular intervals? Click here to see our tips on Tenant File Maintenance. Update Tenant Emergency Contact Information   If you have already purchased an occupied [...]

3. AAOA - American Apartment Owners Association » Tenant Background Checks: 4 Crucial Tips for Detecting Fraud said at January 19th, 2009 at 8:56 am

   [...] Thorough tenant screening is only half the battle. You also need to know how to maintain current and complete tenant files.  Learn how in How-To Tips for Tenant File Maintenance. [...]

4. AAOA - American Apartment Owners Association » 3 Tenant Debt Collection Myths said at February 16th, 2009 at 4:06 pm

   [...] While a social security number is instrumental to debt collection, it is only a part of the information that a good collection agency needs.  Accurate and current employment and banking information is just as crucial.  Here are some examples of what you should have in your rental application or your tenant file:  [...]

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