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By John Hall
Tenant screening is the emerging hot topic in the self-storage industry, and for good reason. Renting space to an unknown customer has always been something of a risk for self-storage businesses. In our post-9/11 world, the risk that a tenant may engage in criminal activity at your storage facility has become a more immediate threat with potentially serious consequences. Combine that with the rampant spread of identify theft and credit abuse, and it’s easy to see why the demand for tenant screening services is increasing.
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In short, screening a potential tenant’s criminal and credit histories makes good business sense. By doing so, you may help minimize the risk of criminal activity at your facility as well as improve your overall profits by reducing the potential for delinquent accounts.
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The key to selecting a background screening product that suits your business’s needs is to research the available options carefully and be aware of how the information is being collected. Some of the options include the following:
Courthouse records searches provide the greatest amount of detail. However, information is pulled from a geographically limited source and is inadequate for obtaining a complete criminal background on multiple jurisdictions.
Criminal database searches access data from department of corrections records and other sources compiled in an electronic database. These searches typically provide access to data from a wide geographical range quickly and affordably.
Sex offender data is compiled by states under “Megan’s Law” and identifies sexual predators and violent criminals.
Office of Foreign Asset Control (OFAC) is a federal database that identifies those convicted of interstate and other federal crimes including drug-related offenses and terrorist activity. Other federal sources include the FBI’s Most Wanted list, the U.S. Marshall’s Office, the Secret Service, the Drug Enforcement Agency (DEA), and the Bureau of Alcohol, Tobacco and Firearms (ATF).
Fraud searches help verify the identity of a prospective tenant and typically include checks for social security fraud and related activities.
Credit reports typically include a credit score, as well as records of unpaid debts, liens and bankruptcies. Credit scores are an especially beneficial tool for managers of high-occupancy facilities in that they provide information that may help you achieve optimal tenant selection.
Another key issue in selecting a tenant screening product is cost. Current costs range from three to ten dollar per applicant. Weighing the minimal cost of tenant screening against the potential risks inherent in renting to an unscreened applicant, the benefits of this added layer of security are obvious. The most important thing is to get started!
John Hall is Marketing Manager for TransUnion, a leading global provider of business intelligence services, and provider of the Storage Screening background screening program. For more information about Storage Screening, please visit www.storagescreening.com or call 888-827-4751.
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