While being a landlord can be lucrative, it can also be very difficult as well. Landlords make around 1 million evictions every year, so it's not an easy task to find good tenants who will pay their rent on time.
With proper tenant screening, you'll be more likely to find tenants that are a great fit for your property and who will be easy to deal with. Great tenants will not only pay on time but will also be less likely to damage your property or disturb their neighbors.
If you don't understand the importance of tenant screening, read on. In this complete guide, we'll tell you everything you need to know.
You'll Get Paid on Time
Dealing with late and missed payments will not only be frustrating but can also reduce the profitability of your rental investment as well.
Screening tenants properly will help you find tenants for your rental property who have stable financial and rental histories. This will be an indication that they'll pay their rental payments on time and that rent collection will be easy for you.
Working with a property manager can help you screen tenants and will also help you get access to tenant portals and owner portals that can make communication easier. You'll also get access to owner statements and get help with property accounting and tax documents as well.
There Will Be Less Property Damage
Finding great new tenants will also protect your property. Low-quality tenants may not care for your property well and may cause a lot of damage.
Fortunately, you can check the criminal history of your tenants and ensure that they don't have any violent offenses or property damage in their past.
Renting to tenants without criminal histories will make it less likely that your property will experience damage. You'll have to make fewer inspections and perform less property maintenance.
You'll Keep the Community Safe
In addition to ensuring the safety of your property, screening tenants will also make the community safer as well.
Checking for a criminal history will help you understand the type of people you're renting a property to. Other tenants in your building and other people in the neighborhood will be safer as a result.
When you find great tenants, you'll also need to worry less about making evictions and dealing with the related headaches.
There Will Be Less Tenant Turnover
Tenant screening also allows you to reduce tenant turnover when leasing property.
Good, quality tenants with a stable background will be more likely to stick around your property and make it their home for a longer period of time. This can save you a lot of headaches as a landlord and can reduce instances of vacancies as well.
With property management, you can easily handle lease renewals and related documents.
You'll Gain Legal Protection
With proper tenant screening, you'll also gain legal protection in the case that you deny an applicant.
Due to The Fair Housing Act, it's important that you don't discriminate based on certain factors. This includes race, sex, religion, and more.
A tenant screening will help ensure that if you deny an applicant, you'll have a justifiable and legally compliant reason for doing so.
Understanding the Importance of Tenant Screening
If you want to be a great landlord, you need to understand the importance of tenant screening. Tenant screening will allow you to find the best tenants possible and can minimize your headaches as a landlord.
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Bonnie is the visionary that has driven the company and culture of Avalon since 1993. Her passion is improving procedures and practices; incorporating technology and value added services for both our clients and tenants.