Did you know that there are more than 20 million rental properties in the United States alone?
As a landlord or investor, there are plenty of opportunities to reap the rewards of your real estate business.
One of the most critical and often challenging aspects of renting property is finding a desirable tenant.
Since renting is often a long-term commitment, you want to find someone who has a clean background and would not prove to be a threat to you or your current tenants.
This is why tenant screening is critical. Continue to read to learn more about tenant screening myths and how to make the process more efficient.
What is Tenant Screening?
Tenant Screening is a comprehensive process designed to help find reliable tenants. During the tenant screening process, landlords:
- create a tenant checklist (desirable qualities, etc)
- research tenant candidates in detail
- perform background checks
- Receive credit score information and additional candidate history
- Interview and have conversations with candidates
#1. If They Pay, They Are A Good Tenant
While it is important to find tenants you can trust and rely on, this could not be further from the truth.
There are many individuals who pay consistently that are horrible tenants. Such tenants often are difficult to work with.
They complain about every issue and are unfriendly. Even worse, is when a tenant breaks property rules such as playing loud music late in the evening. Some tenants may even feel like they own the property and damages your space without remorse.
These tenants are undesirable whether they pay their rent on time or not.
#2. Credit Score Should Not Be The Only Information You Consider
Yes, a person's credit score can paint a clearer picture of their financial history. One's credit score should only be a piece of the puzzle, however. A credit score cannot prove that the candidate will be a respectful tenant.
Along with the individual's credit score, examine his or her criminal background and other telling information. Interview the tenant and see how they interact with you. It is important to see the tenant from multiple different angles.
#3. Tenants are Better Than Vacancies
Vacancies are not desirable, but do not settle. Starting a potentially long relationship with a challenging tenant is stressful.
Do not work with an undesirable tenant just to fill a vacancy. This tenant may not pay on time or may damage your property. In turn, he or she can be more of an expense than a vacancy itself.
Discover Effective Property Management Today
Leasing space is a big business and an essential one. Families need homes and businesses need office space.
Finding attractive tenants is only one key aspect of operating a real estate renting business.
With a property management service, you can hire professional assistance and have more time to focus on growing your real estate business. At Columbia Property Management, our team of experienced property managers will oversee your property and handle the day-to-day operations.
To learn more about tenant screening and how we can be of assistance, please contact us today.