According to an October 2024 post from AZFreeNews.com, Phoenix, Arizona's eviction filing rate is 16 per 100 renter households. Of the 285,300+ evictions filed since March 2020, 90,600 were within the past year.
If you're also a Phoenix landlord, one of your primary goals should be to minimize the risks of evicting tenants. Because if you file for their eviction, you'd spend lots of money on filing/court costs and finding new renters.
Conducting a comprehensive tenant background check is one way to achieve that goal.
So, join us here at PMI San Tan as we explore how to conduct the tenant verification process.
Mind the Law
As a rental property owner and landlord, you have the right to choose the most qualified tenants and require them to comply with a landlord background screening policy. However, renters also have rights, especially under the Arizona Fair Housing Act (FHA).
The FHA makes it illegal for landlords to refuse to rent to applicants based on the prospective tenants':
- Color, race, and national origin
- Sex
- Creed or religion
- Physical and mental disability
- Familial status, such as having children under 18
Failure to comply with the FHA can result in applicants filing a civil rights case against you. So, be careful when screening prospective tenants, especially if you plan to conduct all the steps yourself.
Know What to Look For in a Tenant Background Check
A comprehensive tenant background check must include a tenant credit check and credit report assessment. It allows you to determine whether an applicant is financially responsible and pays their dues on time.
You should also perform an income source and employment verification. It can help you gauge whether a prospective renter can afford the rental rate you charge.
Remember to run a criminal background check, too. Doing so can help confirm whether an applicant has a severe crime conviction (e.g., a felony).
An eviction history check can reveal whether an applicant's landlord has previously filed an eviction case against them. It can also give you insights into how the applicant is as a renter. For example, it can tell you if they were good neighbors, cared for their previous rental unit, and didn't give their last landlord loads of headaches.
Consider Professional Tenant Screening Services
As critical as tenant screening is, it's a time-consuming, legally complex process. So, rather than facing potential civil rights lawsuits against you, consider outsourcing tenant placement, or perhaps even the entire rental property management process, to professionals. Do this, and you can simply sit back, relax, and wait for your rental income while a dedicated manager does all the hard work for you.
Let PMI San Tan Screen and Manage Your Tenants
A comprehensive tenant background check can help prevent evictions by helping you find tenants who are least likely to do something that would force you to evict them. However, it's a lengthy process governed by stringent laws that, if breached, can put you at risk of facing lawsuits, hefty fines, and penalties.
So, don't risk yourself and your reputation. Instead, partner with PMI San Tan, our full-service property management company in Phoenix, AZ. We'll use our 10+ years of experience in accounting and property, project, and client management to help your rental business thrive.
Reach out to us today for a complimentary property analysis!
