In Albany, landlords make around $47,000 to over $63,000 annually, per Salary.com. So, if you have property here that's just sitting empty, consider renting it out.
But to maximize your rental income, you must choose renters carefully. Luckily, you can determine their viability through a comprehensive tenant background check.
To help you get started, PMI Capital District put together this guide, which shares property management tips for a successful tenant verification process. So read on, as what you learn here can help you find the best tenants.
Understand Albany Rental Property Screening Laws
Under the federal Fair Housing Act (FHA) and per the Albany Government, all landlords must treat tenants equally. Failure to do so is a form of "housing discrimination."
So, as part of your tenant screening checklist, remember that you:
- Can never show favor or preference for one applicant
- Cannot refuse to rent to people of protected classes (e.g., religion, nationality, race, etc.)
- Must apply the same screening criteria to all applicants
When you use background check services, you must also comply with the Fair Credit Reporting Act (FCRA), per the Federal Trade Commission (FTC). Landlord compliance with the FCRA requires obtaining written permission from tenants before screening them. So, ensure you ask permission from each tenant and tell them how you plan to screen them.
Know What to Screen For
When verifying tenants' qualifications to rent out your house, you must check their:
- Credit score and history
- Income or employment
- Criminal background
- Rental history
To get those details, perform the following checks.
Credit Check
A credit check provides a snapshot of how people manage their finances. It'll tell you if they're good payers; for instance, they pay their financial dues on time and have no accounts in collection.
Income and Employment Check
An income or employment check allows you to verify that a prospective renter makes enough to pay rent on time. You can use the following documents for this part of the screening process:
- Bank statements
- Yearly tax returns
- A recently signed certificate of employment
- Pay stubs
- W-2 tax forms
Criminal Background Check
A criminal background check can help determine if a person has a recent criminal conviction. If they do, and it's for a severe felony or violent crime, take that as a red flag and move on to other applicants who are less likely to put your property, other tenants, and the community at a safety risk.
Rental History Check
A rental history check reveals whether an applicant has faced multiple evictions. It also involves asking previous landlords about the tenant's rental behavior, such as whether the tenant has always followed the enforced lease or breached it several times.
Follow These Tenant Background Check Guidelines
Now that you know more about conducting a comprehensive tenant background check, the next step is to consider whether you can do it yourself or outsource it to the pros. If you don't have time to perform even just one of them, it's best to let PMI Capital District screen tenants on your behalf.
PMI Capital District is a locally owned and operated full-service property management company serving Albany, NY. From tenant screening to property marketing and rent collection, we can do all these and more for you.
So, call us today to get started on your free property analysis!
