Many landlords either don’t want to or do not know how to do a background check on their prospective tenant.
It is NEVER a good for business to place a tenant in your property without running a background check. By paying only $35, you could potentially save you $8000 in costs for the eviction of a bad tenant.
Watch the video above to see how to do it AND get 10% OFF your next background check by using the promo code “Dustin” at AAOA.com
Hi there, Dustin Heiner with Master passive income and today I’m going to walk you through how to do a background check and get it actually 10% off than what you normally would you would pay. I’m going to walk you through how I actually go through and do a background check. go to my site I’m going to show you I have a page set up here that gives you the 10% off. we’re not going to read through this but basically if you look down here you can see you have the 10% off code by using my name Dustin you get 10% off of doing a background check. I like going through AAOA they are the American apartment Owners Association they keep their own information they keep their own databases. they go to credit reporting agencies they go to all these different places that find data and bring it in for one credit report. I like to use them as opposed to TransUnion or other places Equifax because they actually do it much better and thorough job that actually getting all the information for each tenant that I’m possibly going to put my properties.
Let’s jump into going to their site it quick right here. Let’s jump into a background check now they have a whole bunch of information. they even have landlord 10% off of that as well. that we would normally do now from my business spending $40 or $35 even or even $30 is going to help me save a lot of money in the long run. When you actually have to evict somebody because you got you put in a bad tenant in the first place you have to go through the eviction process or going to have things like; carrying cost for the property, taxes, insurance and you have to pay your mortgage fee you’re have to pay homeowners association. If you have about $1,200 The website you can see I actually break down some objections here’s some objections to running background checks when screening tenants is some objections some people have when they’re running their business. I had the same ones the same objections of myself until I realize how much it’s costing me there too.
Running a credit check on the cost they cost money I was the cost of it is roughly $35 on average you know who I don’t want to spend $35 on a on a possible tenant. Who knows if I don’t put them in its way to $35 that’s one thought. The other objection would be my type of tenants do not do a background check. like they will not do what they’re adamant against background checks there. they’re poor, their middle class, or high class whatever might be they just are against it. well I’m going to dispel those really quickly background checks cost a lot of money. the cost of them I’m going to say is actually minuscule. background check cost on average $35 the credit employment criminal addiction and personal checks are always done. at least I recommend to get those done average about $35 that you’re going to get it very good solid credit check. now what the credit check your going to save yourself possible bad tenant. An eviction can be thousands of dollars to find it on my way to add up all the fees for a property making $1,200 a month and rent and it has a mortgage of $800 a month legal fees. let’s see on average $500 the lawyer the beginning the process of filing a writ in all the fees going on with that.
Court eviction fees of 500 dollars to actually do the eviction. pay for loss of rents you’re looking at $1,200 rent that you normally would get for 3 months that’s $3,600. if you’re in California and might stay on rented for 5 months. if your place is like Texas maybe 2 months. it just depends but let’s just say on average, I have 3 months loss of rent from the time they stop paying to the time and then you finally clean up the place.
Then you finally get a renter what’s 3 months turn around it’s only $3,600 all your pocket. that’s not including the mortgage payment of $800 / 3 months because you still have to pay the mortgage every single month. that’s $2,400. now clean up repair this just average with a type of property that you have average clean up with. painting clean the carpets you know good thorough cleaning inside out about $1,200 or $800 or $1,500 depending how bad they damage to property. I’ve had my property as well as I even had tenants that had tons and tons of junk inside that took two garbage bins. for each one is like five or six hundred bucks just to get rid of all the junk. it can be higher or that placing a new tenant property manager yearly charge you probably about the first month’s rent.
your first month’s rent $1,200 that’s a chunk of change. you are looking at about $100 a month with 3 months is $300 average. That is $8,000 coming out of your pocket or just in loss of revenue. all that combined if you just would have spent $35 to do it background check to see who this person’s been evicted four times before in the last 6 years. I don’t want to put them in my property or they have a really bad criminal domestic violence and things like that. they don’t have employment their credit is horrible whatever might be. just by doing a $35 background check you have potentially save yourself $8,000.
just by spending $35 obviously it’s I believe it’s a no-brainer hopefully you see that too another type. You can get 10% off the background check if you use my promo code “Dustin”. Some people say, my type of tenant would never do a background check. well I’m going to go ahead and say that if they don’t do a background check there’s probably a reason. why your good perspective tenants have nothing to hide. quickly to dispel those two. is go back to the tenant screening now what I’m going to suggest to do background check or you can do both of them together. but here’s what I suggest with you actually get it registered sex offender criminal state-specific you get a criminal background check as well. in this one which you don’t get the criminal background check over here $40 and I both of these together. it’s $40 just do one of them would be the red package which is decent it still good to get that credit score you get previous address history eviction which is State specific.
I’m going to recommend not necessarily here that’s not for me and you know I’m not really the blue type of guy with a state or federal or national wide criminal check. that’s not really for me I’m more you know if they’re Federal than there is some bigger problems there that is going to come up on the state anyway. I’m going to recommend going with the white package. you can go the other ones but I’m going to say go with right packaging you’re looking at 35 $36. but here’s another thing I want to give you a quick tip. have your tenants pay for this as an application fee. when they apply to get into the property you say hey this 35 or $36.
I’m charging you is not going to my pocket is do a background check on you just to verify everything is good. now let’s go ahead and jump in with this white package here with a background check on the buy now button at the bottom. now what you want to do you want to go through all this information and this is for the tenant. it’s going to walk you through it their first name date of birth. I’m going to let you know right now that you need to give them an application that’s going to have all this information on there. if you don’t have the date of birth social security number for driver’s license number you’re going to need to get that information. I personally would not even accept an application if it did not have this information on there. because I want to know who I’m actually putting in there. because I know I would never put in somebody in my own personal residence living next door to me that I have no clue who they were and I didn’t do it background check.
I didn’t know their history I would not do that that’s just me. then you want to select which state you’re going to do the eviction and criminal because it’s state-specific. let’s go ahead and say Joe Smith I’m making up some random stuff. let’s do not make up something real quick cuz I’m just going to show you. walk you through it you could put Social Security numbers. I don’t know which is fine but I would not go through with it if it didn’t say Arizona extra.
it must be 10 its own unique email address it cannot be shared a 808 notify you via email. when a credit card is ready to be viewed they’re actually going to go tell the tenant, hey I need you to approve this. and then it comes back to you. let’s say Joe Smith at AOL.com email address. but I’m going to Arizona because that’s what my property address .you can have it. as we go to national Criminal national criminal history verify absolutely can do that if you’re. National there probably the state continues as we go to continue going to say no.
we don’t need to going to say there was or husband or boyfriend that’s with him as well charge but we but we’re not this video. going through co-applicant obviously you want obviously you want there in from Right Packages go down here I’m going to show you the $35 is what’s going to be the cost. but if you type right here go to promo code Type in Dustin. and hit apply you’re going to get 10% off of your order. you got $3.60 off. now obviously if you got bigger packages 10% to 10% then you go all the way through and you produce the results and it’ll actually produce an order for you and a quick form come back to you after it goes to the tenants as a tenant Joe Smith. is it okay if we run the credit report your landlord potential landlord is asking for it. he’s going to say yes and apply it and you going to be good to go you can be able to place to report but this is what example credit report is going to look like. This is different information that I just fake put in Joe Smith and everything but we go down this screen report and after the 10 that gives the approval then you go down to up you get this in your email. you’re going to go through all this I can go down the list to see the personal information date of birth current address previous address. now this is important because you want to make sure this line up with their application. my applications have previous address is on there as well I can verify that on the credit report cuz if they’re lying on 1 you never know what else going to be lying on. you could see how long they been living there reported sense this is basically the personal information for the potential tenant now it’s scroll down a little bit the credit summary we’re going to look at how they are with their credit if they have any enquiries recently you know people or companies that are looking to give them credit and how many actual accounts they have open. what’s their High credit how much they actually owe total credit limit total revolver everything about their credit is inside of here now what I would look at is total account balance and total monthly payments these two are going to exit this is one of the biggest 1 total monthly payment if they make $2,000 a month and you’re renting a property for $800 a month and they have a $544 credit card payment that’s not that bad. you know they’re going to be $1,000 out of pocket with the rent and their credit card payment have an extra $1,000 and the other girlfriend live with him but let’s actually have somebody with a $2,000 monthly payment right here because they have much debt there actual debt is you know $30,000 but their monthly payment is actually close to $1,000 that’s going to eat up all their income.
you’re going to realize they’re going to have very little ability to pay back the rent as well as credit cards this is their General credit score for their person 5:35 is not horrible it’s not great you can see green right here would be really good and anything down here that’s yellow range is okay they start getting a red area hurts bad and this is horrible far away is Hood it probably seems like that’s what I would do usually for me anywhere from here to here I would rent to on a rare occasion when I read to somebody and inside of this side of this area right here on a very rare occasion.
but usually I’m pretty okay as long as everything else checks out let’s keep going down it shows what they actually have in collections how much they owe creditors are coming after them for this is the company this is how much the amount due balance obviously got interest and some more set 1 2 3 accounts for Count’s 5 accounts they have a lot of different account open but they’re 96 to 90. its good and bad potentially mean they’re not paying your bills and with somebody this person renting in a $500 property but definitely not something that’s like a $1,200 a month or $1,500 a month property be much more weight for $1,839 you can see their payment history they’re not in collections for their bad company that they didn’t do a good job these payments made on time but these ones are saying how many days late they are. this is not get to 90 days late I just can’t tell you that it just doesn’t fit your inner absolutely no obligation to tell them now if you do tell them you need to make sure you’re telling them you know good things are not going to say well.
it’s because you’re married and I don’t like married people or is it because you go to church I don’t like church people you don’t say any of that stupid stuff. you just want to say hey it just doesn’t fit her criteria but what you can do if even though they have all these bad problems all the way back up here with the bad credit and amount of money owed what you can say is hey I still would want to rent to you if you as it says right here you should not lease to this tenant to this African without additional Financial Security that would be a higher security deposit. if you’re charging it first month’s rent and security deposit like $1,200 that total dollar amount as security deposit which is normal then you can say well I really want to bring you in there but I need more security deposit if you can come.
Say I need two months of rent now it’s not going to be in place of rent. you know if you ever want to move out it’s not going to be a place that this is the security deposit your security deposit is double what a normal rent is $2,400 for a $200 apartment or home that’s what you need to put down and if if they’re willing to put that down that shows that they’re very serious about moving the property and taking care of it as well as it gives you some Financial buffer in case you have to evict them. you have some problems and this is nothing. I want to bring up at this point no further steps are necessary other than to communicate your decision I just briefly talked about it you are under no obligation whatsoever to tell them why you denied them. you just say it just doesn’t fit her criteria for what we’re looking for in our property. I appreciate you replying but we’re going to have to move on that’s all you got to say and do not say another word after that. you could get yourself in hot water if you just keep talking but you’re a you are not under no obligation.
The TeleCheck talks about if they’ve actually written a check a good or bad check and obviously this guy has no bad checks found for you and this guy a lot of people don’t use checks now they do things electronically I don’t know how much longer this is going to be good but at the same time it’s still a very good thing to know that he doesn’t have any bad checks previous address history this will be really good information because you’re going to want to put that back to what he put on his application as well as going to be able to call you know there’s a phone number here hey how was this guy’s name is Jonathan consumer.
hey how was Jonathan has a tenant can you tell me about him and you can get some third-party information of somebody that’s in your shoes another landlord that can actually hopefully help you out. National eviction it actually shows any evictions has no records which obviously is a good thing National criminal search this is going to be another big one. because if you want to make sure that you have do not have criminals that are domestic violence and always bad things that are going to happen you know Murder if you don’t want to have that what you don’t know of anybody that has a criminal history or you have no you’re not obligated to do it to rent to them this is a good thing to know you to look at traffic control devices he probably just played guilty for running a red light understandable that you know some people can be like that but this one here is another one in my opinion make me not want to put him in my property. sex offender searches I’m looking at the sex offender search we’re going to look at the okay.
Jonathan consumer well he was actually incarcerated because of criminal sex conduct with a minor that’s what that is with a minor to cancel that that’s not good and aggravated child molestation that’s very not good. personally, the properties that I have I have everybody has the neighbors living right next door to him if he actually moves into that property into your property your neighbors are going to be very happy. I’m going to go ahead and say it’s probably not the best idea to put somebody who has a history of this in there it’s going to devalue your property and the neighbors around you but that’s obviously your call it’s probably not the best idea to do that they can find other places to live.
Terrorist Federal search in this in this background check or seeing the whole shebang just give you everything that you would get if you paid the full the full price you know it doesn’t have anything as far as being on the terrorist watch list social security number verifier plus. everything’s verified everything is good you don’t have to worry about that. that the entire background check and you can see is very thorough and they go back to having go back to the go back to here and you see that it’s only 32 36 for normal credit check and background check and criminal check in eviction check that’s a lot of peace of mind that you can buy because you can possibly spend up to $8,000 even more or less but $35 is going to save you a ton of time but here’s another thing I want to tell you make your prospective tenants pay for this $35 or $36 will shoot you can even save this 10% because it goes to you it’s a $36 fee that you charged every time and you make $3.60 or you can even charge more charge $40 it’s totally up to you.
I hope you guys had a good time learning about going through the process of getting your credit check ran for your tenants and I hope that you were able to save yourself you know $8,000. Leave in a thousand dollars just by running 1 credit check I strongly encourage you I never do anything without actually running a credit check. and putting a person in my property because saving myself $8,000 is great. and I could spend $35 to save a grand it’s wholeheartedly and the best way to go anyways this is.
Remember the AAOA.com/tenant-screening American apartment Owners Association
Remember to use the AAOA promo code “Dustin” get yourself 10% off
Please feel free to reach out to me I’d love to talk to you about rental properties I have it on my course that you can go through it’s free for you to sign up but anyways go to my site Master passive income.com and get started learning about rental properties I actually quit my job when I was just 37 years old. it took me 9 years to build up my business that I could quit. and now I have plenty of time to play with my kids be with my wife go on your long vacations and travel and plenty of money to do so. anyways hey thank you very much again this is Dustin with www.Masterpassiveincome.com and hope to see you soon and hope the best for everything.
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