Maintaining a current and correct tenant file is a simple way to protect your valuable investment. Tenancies change, lives change, and circumstances can occur that may turn a long term tenant into a potential collection problem. Here are some simple tips to track your tenant, as to his ability to pay rent. Remember, the sooner you are aware of a potential problem, the sooner you can gain control of a situation and minimize your losses.

1. Change in payment method. If a personal check is used, photocopy it each month or note the bank, account number and name and address of the maker. If the imprinted name on the check is different than previous months or your tenancy agreement, this may indicate a change in tenancy. Relationship changes are the single largest cause for failure to pay rent. If an eviction is the ultimate result, your diligence would not be wasted. The bank information may be valuable in helping to recover your money judgment.
2. Track changes in employment. Short of calling employers to reconfirm employment, which is intrusive and not recommended , tracking employment can be somewhat more difficult than tracking a bank account. However, since employment is usually the main source of rent payment, it is a good idea to be aware of any changes.
   
   
3. Credit Report Updates. Hopefully, when initially renting to the tenant you purchased a complete tenant screening report with national eviction and property damage report. If this is the case, a basic credit report should be run every 12-24 months on every tenant. This is excellent file filler that lets you see how your tenant is doing financially. A credit report update is very inexpensive way to see if he has been paying bills on time, going into more debt, and may even indicated if he has been shopping for another apartment or even a mortgage for a home. Depending on the volume, TenantAlert UPDATE is available for as little as $5.

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