Would you consider foregoing three or more months of rental income? Probably not, but that could be the case if you have to evict a tenant from a property you own or manage.
Although once a last resort measure, evictions are becoming more prevalent. The number of eviction notices served this year already surpasses last year's total of 1,485.
Tenant screening can help you avoid becoming a part of this statistic. However, it can be time-consuming and costly. This article will help you decide if you should consider outsourcing this process. Read on to learn more.
Benefits of Tenant Screening
The tenant screening process assesses the financial stability and character of potential tenants. It can help determine if they will comply with the terms of the rental agreement. This includes paying rent on time and taking care of the property.
Here are a few other benefits it can provide:
1. Saves Time
Effective tenant screening involves obtaining relevant information about a potential tenant, including:
- Tenant background check
- Current and past employment
- Tenant credit check
- Criminal history
- Rental history
- Eviction history, if any
- Tenant references
Obtaining and reviewing this information can be painstaking. Hiring a property management company to do the legwork saves you time. This can lead to finding a suitable occupant for your property.
2. Facilitates Consistency
When outsourced, tenant screening becomes a process that involves specific steps. This facilitates more consistent and efficient evaluation. There's little to no delay when assessing model applicants.
An experienced property management company will ensure legal compliance when reviewing and selecting a client. This involves providing all applicants with the same rental requirements. They'll also review and treat all applications fairly.
3. Reduces Risk and Liability
Tenant screening helps increase the chances of selecting a reliable and responsible tenant. This reduces your risk of property damage and late or non-payment of rent. Both of which can result in costly repairs and legal proceedings.
Landlords also have a moral responsibility to ensure their tenants are not dangerous or a nuisance to others. Relevant background checks will help facilitate this.
4. No Personal Involvement
You may not know a potential tenant, but a touching story or circumstance might sway you to make an inappropriate choice.
Tenant screening helps you avoid this. You never have to deal with the applicant. A property management company will make the final decision based on the information they obtain.
The Downside
Tenant screening costs will vary depending on the property management company you choose. Most companies charge between 4% to 18% of the monthly rent collected.
Although it is an added expense, it pales in comparison to the costs associated with extensive property damage. Tenant screening can also minimize your risk of losing rental income due to eviction proceedings.
To Outsource or Not?
Tenant screening is an extensive and often expensive process. However, a bad tenant may cost you even more. Outsourcing tenant screening can help you avoid property damage or lose rental income.
St. Louis Property Management, Inc. provides a thorough and efficient tenant screening process. We guarantee we'll find you a quality tenant within 21 days! Avoid property management issues by taking us up on our challenge!
