If you own a rental property, you may be worried about accepting the wrong tenants. It's not an unprompted fear, as there are over 1 million evictions across the US every year.
Accepting the wrong tenants can be devastating to you, your property, and your business. Well, luckily there are ways around that.
If you use the right tenant screening services, you won't have to worry about the damage the wrong tenants can cause you! Here's why!
Tenant Screening Service Benefits: Save You Money
In the long run, bad tenants can cost you a fortune. Accepting the wrong tenants is the easiest mistake to make a landlord can make, but it can be the most devastating.
Even if you're able to evict them, it will likely take multiple months without income from that unit, and the cost of whatever damage they caused in the building.
Landlords already spend an average of $50-100 a month per unit, and that number can jump to the thousands quickly with the wrong tenant.
The first step in the tenant screening process is always verifying their employment and their income. This will tell you a lot about how they will pay their rent. Income should be at least 3 times the rent, but should also be steady and verifiable. Otherwise, it's a high risk.
The best way to see how someone will pay their rent is to see their earlier habits. If somebody has a long history of multiple evictions due to not paying rent, then they are in the high-risk category.
This is important regardless of income. If you find their income is 6 times the rent, they may still have trouble paying the bills due to other circumstances like too much debt, other expenses, or just a lack of interest.
Tenant screening reports will include extensive information about the potential tenants' financial records, including their credit history. This is crucial to see how people handle their finances, how much debt they are in, their on-time payment histories, and to see if they're an all-around good fit for your property.
A property manager with a lot of experience in tenant screening is bound to have high standards. All it takes is one bad tenant to learn the lesson of the value of screening.
Moderate to high-risk applicants will be turned away in favor of candidates with the right history and financial standing.
Save You Time
The best tenant screening services are always through an experienced property management company. If you hire a professional property manager, they take all the work off your back when it comes to tenant screening, and there is a lot of work involved!
Not only that, they won't stop taking applications until the right tenant is found, and they'll do what they have to do to find them.
Get Screening Today!
Now that you know what tenant screening services can do for you, why wait? Vacancies can come any day, and you don't want a nightmare from your next tenant, that's why we got you covered!
If you're trying to get rid of a bad tenant right now, find out what you need to know about the CDC eviction ban first!