Recent increases in housing costs have driven more people to rent. This has increased rental demand, which means such properties are more lucrative now than ever.
Managing properties requires a lot of time and diligence though, including finding the right residents. One of the main steps is tenant screening, which can take a lot of time and money. For this reason, many property owners outsource the chore.
This article covers the advantages of outsourcing tenant screening. Whether you are an old or new landlord, keep reading to find out if it is the right move for your investment property.
One of the main reasons to consider outsourcing tenant screening is that it takes a great deal of time. With each tenant application, you must obtain and review credit reports and public records. This almost always includes a background check.
Comprehensive screening also entails talking to former landlords, employees, and references. Tracking each down can be a hassle. All this can suck up valuable time that you could devote to your real estate business or other endeavors.
Being thorough is important, and cutting corners could cost you money. For instance, about 15 percent of the population, or 6 million Americans, are behind on their rent. Identifying applicants who have a poor credit history or of not pay rent could help you avoid this situation yourself.
Also, you only make money on rental units when units are occupied. Finding. quality tenants means a more consistent and reliable revenue stream for your business.
Finally, most property management companies charge a base fee for tenant screening services. This means that you can thoroughly screen more residents without the added costs of per-applicant screens.
Better Compliance With the Law
There are federal and state laws that protect rental applicants. It is vital to stay up-to-speed on these.
Outsourcing tenant screening can give you the peace of mind that you are in full compliance with the law. This includes new standards that you may not be aware of.
Similarly, when landlords screen tenants, bias can creep in. This can be unconscious but could still open you up to accusations and even legal entanglements. A property management company acts as an objective third party that selects based on the information they obtain.
Allows You to Make More Informed Decisions
Hiring a property management company for tenant screening does not mean you relinquish all control. Quite the opposite: it lets you make a more informed decision about tenants. It also gives you access to advice from real estate experts.
Find Tenant Screening Services Near You
Now that you know some of the advantages of outsourcing tenant screening, you can decide if it is the best option for your investment property. It can save you a lot of time, headaches, and money down the road.
PMI Best Assets is a full-service property management company. In addition to tenant screening, we offer marketing, rent collection, grounds maintenance, bookkeeping, and many other services. Reach out to us today for a free quote.