Tenant screening was listed as a primary struggle for landlords in a recent Zillow survey. 72% of participants put it at the top behind maintenance at 92%.
Letting all applicants in can leave you with a dangerous or delinquent tenant. Not letting anyone in leaves you with vacancies that ruin your bottom line. It's a constant balancing act, and having another hand is always helpful.
Read on to learn the benefits of outsourcing tenant screening.
Wider Tenant Pool
Tenant screening may seem like it limits your options, but the opposite is true.
It's an important part of tenant placement services. They also include:
- Verifying income and employment
- Lease signing
They work together to attract tenants and make your property more desirable. It increases your tenant pool, reduces vacancies, and lets you charge higher rents. That makes it a worthwhile long-term investment.
A full-service property management company provides a comprehensive range of data about your tenants. They can check every part of their background, including their:
- Credit history
- Criminal history
- Eviction history
- Employment history
- Rental history
This information lets you make informed decisions about who to rent to. It makes sure they're safe and able to pay rent on time.
Saving Time and Money
Screening tenants is one of the most time-consuming landlord duties. Taking too long can even cost you a potential applicant.
Outsourcing saves you time and money. Professionals can process applications and perform checks in hours when it would have taken you days. They can also offer you bulk pricing where you pay to screen a group of tenants instead of each one. This is a major benefit if you own multiple properties.
Outsourcing a tenant background check reduces the amount of errors or missed red flags. They know what to look for, and you'll get as accurate a result as possible every time.
The data won't be clouded by personal biases. Using a third party ensures that you get the facts and nothing but the facts.
Consistent background checks are also important for legal reasons. The Fair Housing Act prevents you from refusing a tenant based on protected categories such as:
- National origin
- Familial status
It also says that you must perform the same checks for everyone. You need to analyze each applicant individually based on the results of their report.
Landlords are also liable to the Fair Credit Reporting Act. It says that you can't share any information from a tenant credit check and must dispose of it when you're finished using it. You must also notify them if their score or history is the reason that you're denying them.
Professional tenant screening is done with these laws in mind. You don't have to remember them all to avoid a legal battle because they already know them.
Get Professional Tenant Screening
Tenant screening is one of the most complex but necessary parts of property ownership. Outsourcing it to a professional increases your tenant pool, saves time and money, gives you comprehensive, consistent results, and helps you avoid legal trouble.
PMI Palmetto started with one property and now has over 25 years of property management experience. Contact us for help growing your investments today.