More than 44 million households in America are renters. The pool of applicants is wider than ever, but tenant screening remains a crucial part of the placement process. After all, you don't want to rent to an irresponsible tenant.
You can screen tenants yourself, but outsourcing the job may be the better solution. There are many benefits to outsourcing tenant screening, and we're covering them all. Read on to learn why you should invest in property management services.
Understand an Applicant's Financial Situation
One of the most important aspects a new landlord needs to learn is to screen tenants to determine their financial situation through employment verification and credit scores. An applicant needs to be able to comfortably afford rent.
Part of the screening process is discovering their credit score and history. According to these Long Beach property managers, If they have good credit, it shows that this tenant is financially responsible. If they have poor credit, it could be a red flag.
If they don't pay their bills on time, they may not pay rent on time either.
Of course, the credit report shouldn't be the only factor you consider.
Applicants with poor credit or no rental history can sign a lease agreement with a co-signer. A co-signer acts like a safety net and can provide you peace of mind when signing a high-risk tenant. If the tenant fails to pay their rent or any fees due, it's up to the co-signer to do so.
A property management company handles tenant screening. However, they also manage much more than that. Property management services also include placing advertisements, showing the property, collecting rent, and more.
They Understand Landlord-Tenant Laws
As a landlord, you must be careful to avoid breaking any Fair Housing Laws. In Colorado and across the United States, landlords can't discriminate based on race, religion, color, national origin, etc.
Part of the tenant screening process check involves a background check. A tenant cannot be denied housing simply because they have a criminal background. For instance, an applicant may have a traffic violation or an offense from a decade ago.
It's best to evaluate these instances on a case-by-case basis.
To avoid any discrimination, it helps to have a non-biased company evaluate applications. There's no risk of getting attached, and you don't have to worry about breaking any landlord-tenant laws.
Evictions are a complicated and messy process for everyone involved. It's best to avoid them, if possible, through a tenant screening.
A report reveals details on tenants that failed to pay their rents and other reasons for eviction. These could be high-risk tenants.
Having a property management group handle the tenant screening process ensures it goes quickly and smoothly. You get all the information you need in a timely manner, allowing you to make a decision.
You can respond to quality tenants quickly and get the property rented sooner. You also reduce the chances that an applicant will find another place to rent while waiting for an answer.
As a result, the entire process makes your property look more professional.
It Pays to Outsource Tenant Screening
Outsourcing the tenant screening process saves you time and brings in high-quality applicants. Property management companies handle everything from advertising to tenant placement and beyond.
If you're interested in getting started and discovering the benefits, take a look at our pricing plans and contact us to help manage your Denver property!