If you're fortunate enough to own investment property in beautiful Costa Rica, you want to make sure the right people are staying there! This is where a tenant background check comes in.
Responsible landlords know that this is a critical step in the tenant selection process, but it's important to go about it the right way. Today, we're sharing three important tips that can help you manage your background checks with ease.
1. Follow All Legal Guidelines
Different states and jurisdictions will have their own guidelines concerning the legality of background checks. In Costa Rica, this process is technically legal, but landlords have to adhere to certain policies.
These policies are in place to protect tenants' privacy. Your background check can include a detailed review of the individual's financial history and credit history, as well as any criminal records they have in place. You're also allowed to verify their identity.
However, you cannot proceed with any step of this process unless you have the tenant's consent. It's best to get this in writing so you have a clear record of the agreement.
2. Use Technology
When a tenant fills out a rental application, you want to assume they're being as truthful and transparent as possible. However, this isn't always the case.
You can always double-check their answers using the technology at your fingertips. From social media profiles to online criminal databases and sex offender registries, there are many resources only a click away.
When you conduct these checks, you can get a sense of assurance and security about your tenants. If they have nothing to hide, this should give them peace of mind, too. It shows you're committed to keeping your property safe and nearby residents secure.
Want to make the process simple and streamlined? Allow a property management company to take care of the tenant screening and background check for you!
3. Keep It Consistent
Don't try to reinvent the wheel with every tenant background check. Make sure you're collecting the same data sets from each applicant. It helps to create and follow a basic checklist, with steps for each part of the process (e.g. credit check, criminal history check, ID scan)
In addition to verifying identities and reviewing employment details, go the extra mile when determining financial stability. Call their employer, ask how long they've worked there, and request a copy of their latest pay stubs. This way, you'll know whether they can cover their rent from month to month.
Follow this process with each applicant, and make sure your employees have a copy of the checklist to follow.
Ace the Tenant Background Check Process
Renting your property is a great way to earn passive income from your Costa Rica real estate investment. However, it's essential to find the right people to enjoy your property.
A tenant background check is an important part of the rental process. By following these three steps above, you can make sure you're getting all the details you need, in a way that complies with local laws and protects the applicants.
At PMI Costa Rica, we're here to make every aspect of property management as seamless as possible. From screening and rent collection to on-site maintenance and accounting, we can do it all. Contact us to learn more and schedule a consultation!