The process involves evaluating potential tenants by implementing background checks, credit checks, and applications complete with references to ensure that they are suitable for your property. With those tools, you’ll be able to analyze their rental history, credit report, employment status, and criminal record. Performing tenant screening can save you from costly mistakes, including missed rent payments, property damage, and eviction.
As a landlord, your rental property is a significant investment, and you certainly want to protect it. Proper tenant screening can help you find tenants who will treat your property and neighbors with respect, pay rent on time, and even renew their lease or extend their contract with you. This way, you avoid costly damages to your property and vacancy periods that can result in lost income.
When you rent out your property, you are subject to several laws and regulations. A bad tenant with poor rental history may be more likely to violate these laws, leading to legal issues for you as a landlord. For example, a tenant who engages in illegal activities on your property can lead to a lawsuit, which can be expensive and time-consuming to resolve. Proper tenant screening can help you avoid these problems by identifying potential issues before they arise.
No landlord wants to deal with the effort of trying to collect delinquent rent payments from a tenant, or multiple tenants. In a perfect world, all of your tenants are paying on time. If your primary or only stream of income is from your occupation as a landlord- your tenants failing to pay rent on time can impact your cash flow and your ability to pay your mortgage, taxes, and other expenses as well. Proper tenant screening can help you avoid tenants with a history of late payments or non-payment.
A bad tenant can create a nuisance or even pose a safety threat for your neighbors, leading to complaints and potential legal issues. For example, an excessively noisy tenant can disturb other tenants, leading to complaints and, in extreme cases, can even lead to eviction. Proper tenant screening, especially through contacting previous landlords and other references, can better help you identify tenants who are likely to be respectful and responsible neighbors.
A good tenant relationship can make your life as a landlord much easier. By finding tenants who are responsible and respectful, you can build a positive relationship that can lead to long-term rental income. Proper tenant screening can help you find the right tenants, leading to a more positive landlord-tenant relationship.
In conclusion, proper tenant screening is essential to the success of your rental property investment. By finding tenants who are responsible, respectful, and financially stable, you can minimize the risk of costly mistakes and legal issues. To easily carry-out tenant screening and manage all the efforts that go into managing your property- consider hiring a professional property manager. A good property management company, such as JMK Property Management, can help you maximize your income and reduce the risks associated with trying to manage a property, or multiple, on your own.
Does it all sound like too much to you? Hire a Property Management Company to take care of rent increases, and more, for your property!