Real Estate – The Modern Wild West
Real estate is still a bit like the Wild West. Compliance systems aren’t fully standardized, sales and rentals aren’t handled through major conglomerations, and individuals can make sales and contracts at any time. This is by no means an inherently negative thing, though! It means homeowners and individuals interested in real estate investment can experiment with everything from rental to flips to REITs. But it also means that an individual homeowner can suddenly take on all of the liability and responsibilities of a corporation. Protect yourself and your assets by working with professional property managers and background screening services to verify tenants.
Verify Tenants With a Background Screening Partner
There are numerous federal and state laws designed to protect potential tenants against discrimination. These regulations outline procedures and prohibited exclusions in minute detail, and there’s too much information for anyone to research and comply with on their own. Even honest practices and attempts to create fair policies when accepting or turning down tenants can result in a civil suit that you can’t afford to combat.
While third-party services don’t remove all of the liability, they do substantially lower the risk of claims and suits against you. Instead of having to chase down references, previous landlords, and applicants’ histories in order to verify tenants, you can submit their application to a background screening partner. Not only can a professional screening service find more definite information about the risk each potential tenant represents, you have documentation to support your final decision in the event of a claim. Just having a third-party source to back up your defense can make the claim go away because you’ve proven that you’re not an easy mark. That protection is essential, especially if you are operating as a sole proprietor instead of incorporating or filing as an LLC.
Contact TruDiligence Today!
The lack of standardized procedures means you have a lot of business opportunities available to you in real estate, but it also means you have to take your own steps to protect yourself. Please contact us today to see how our NAPBS-accredited background screening can fit into your business practices.