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Bad tenants will waste your time and energy. They pose problems with neighbors and cause property damage, affecting your revenues.
It's tough to discern if an applicant is as trustworthy as they claim. By large, their stories are often too good to be true. Thus, what can you do to find reputable tenants and ensure they are who they claim to be?
A solution to this is doing extensive tenant screening. Hence, what is tenant screening? Read on to find out and learn about the many tenant screening benefits.
1. Avoid Bad Tenants
For your tenant screening guide, you can't evict all bad tenants. You'll be stuck with them until their lease expires.
Yet, if you screen tenants from the outset, you'll be more likely to pick out tenants like them right away. Screening all your applicants can cost a bit, but it will save you time, money, and headaches in the long run.
2. Learn About Applicant's Payment History
Thorough tenant screening will let you learn about an applicant's payment history. You'll get references from prior landlords and employers.
Reference checks are as crucial as real estate asset management. They ensure that your candidate has a good track record of paying their rent.
3. Finding Quality Tenants
Finding good tenants is the inverse of avoiding bad tenants. It's priceless to have a tenant who pays their rent on time every month. They don't bother their neighbors and rarely have repair requests or other needs.
Investors and owners who have such tenants understand how much time and money they save in the long run. Thus, tenant screening is the only option to identify tenants of this caliber.
4. Legally Deny Applicants
Due to Fair Housing laws, you can't outright deny a prospective tenant. You can only turn down an applicant if you show that you screened them and that your decision is fair.
With tenant screening, you have the option of turning down people. It allows you to select tenants that meet your requirements. Having renters you know will honor their lease agreements is a luxury you can't afford to pass up.
5. Avoid Evictions
Evictions are expensive, time-consuming, and a real pain to process. If you screen applicants, you can lease tenants you know will be good for your business.
You have the assurance that your tenants will pay on time. They'll respect your property and adhere to their lease terms. You'll have little to no evictions.
6. Reduce Tenant Turnover
There will be fewer vacancies and lower turnover if you have reputable tenants. They'll be eager to sign longer leases or renew their leases when the time comes.
Screen your applicants to find such tenants. It's worth the effort to find good tenants who aren't going anywhere soon.
7. Avoid Criminals
Many applicants could have prior criminal convictions. So, one of the best tenant screening tips is to do a complete criminal history check. This way, you'll avoid renting your property to someone who is a threat to the neighborhood.
Conduct Tenant Screening Today
With tenant screening, you'll be able to make faster and more informed decisions. Boost your chances of finding quality tenants now! This way, you'll make the most out of your investment property.
If you're looking for property management services, contact us here!