Finding a great tenant is one of the most important parts of managing a rental property successfully. At TALK Property Management, we work closely with landlords and real estate investors across the greater Austin area, and we know that a solid tenant background check can be the key to protecting your investment. Here’s what every property manager should know when it comes to screening tenants effectively.
Why Background Checks Matter
A thorough background check helps you:
- Protect your property from damage or misuse
- Ensure consistent rental income by identifying reliable, financially stable tenants
- Reduce turnover by choosing tenants likely to stay long-term
- Avoid legal issues by confirming identity and past behavior
Skipping this step can cost you significantly in unpaid rent, property repairs, or even court fees.
What to Include in a Background Check
When we screen tenants at TALK Property Management, we cover these key areas:
1. Credit Report
A credit check gives insight into the tenant’s financial history. While a perfect credit score isn’t always necessary, we’re looking for patterns of responsibility—on-time payments, low debt-to-income ratio, and no recent bankruptcies or large collections.
2. Criminal History
A criminal background check ensures the safety of your property and other residents. We evaluate the severity and age of any offenses while staying compliant with Fair Housing guidelines.
3. Eviction Records
Past evictions can be a major red flag. We check for eviction filings and judgments in the tenant’s rental history and ask for context when necessary.
4. Employment & Income Verification
Stable employment and adequate income help ensure the tenant can afford the rent. We typically verify employment directly and look for income that is at least 2.5–3 times the rent.
5. Rental History & References
We contact previous landlords to ask about payment history, property care, and communication. A strong reference from a former landlord is one of the best predictors of future behavior.
Stay Compliant: Know the Laws
Tenant screening must follow Fair Housing Laws, FCRA (Fair Credit Reporting Act) rules, and local regulations. That means:
- Always apply the same screening standards to every applicant
- Get written consent before running any reports
- Notify tenants if they’re denied based on information found in the screening
At TALK Property Management, we follow a consistent, legally compliant process to protect our clients from liability.
Best Practices for Landlords
Whether you’re managing one property or several, here are a few tips:
- Use a written screening criteria: Outline your minimum requirements (e.g., income level, no recent evictions) and apply them equally.
- Partner with a property management firm: We take the guesswork out of screening and help ensure you stay compliant.
- Keep thorough records: If you ever need to defend a decision, having documentation will make a big difference.
We’re Here to Help
Tenant background checks can be complex, but they’re essential to finding responsible renters and protecting your investment. At TALK Property Management, we’re committed to helping Austin-area landlords feel confident in their leasing decisions.
If you’d like help screening tenants or managing your rental property, contact us today. We handle the details so you can enjoy peace of mind and steady returns.