Why Landlords Must Consider Getting a Background Check
It’s but normal to think in terms of Return on Investment (ROI) when you have already invested somewhere. There is a continual supply of renters ranging from singles, working professionals, students, and the like.
Once the issue of renting out your space gets resolved, other significant ones crop up. How do you make a call with regards to who you wish to let out your property to?
What if the individual in question turns out to be someone you would want to maintain a safe distance from?
A few typical issues are not paying the rent on time, creating a ruckus now and then over being provided special provisions, harboring a general disdain for adhering to simple guidelines. A landlord would be held liable and then booked for any dispute that is caused by the tenant. This will in turn jeopardize the prospect of earning rentals through that piece of property.
Why Tenant Verification
Indian Penal Code’s Section 188 states that not conducting police verification of prospective tenants could result in a month’s imprisonment or a certain amount to be paid as fine. It is a mandate now.
So, what must one do before taking in tenants? Handing out a Police Verification form and getting their ID proofs such as their Aadhar Card, Voter’s ID card, PAN card verified should be the foremost step.
Financial capability is paramount and so, taking a look at their last 3 months’ bank statement or checking their credit history will shed some light and relieve you of the stress that gets generated due to untimely payments. Getting in touch with their local district police ( as per the previous residential address) to ascertain their general conduct is another method. One can find out where they’re currently employed and how their ITR (Income Tax Return) files have been handled. You could also ring up their previous landlord and enquire if the rent was paid in a timely fashion if the place allotted was looked after carefully and maintained well, and whether there were any uncalled-for troubles.