Renting out your home is a fantastic way to make some extra money. That extra money can really add up and help you achieve your financial goals in life. One of the biggest concerns for anyone looking to rent out their home is how the tenants will work out. Here’s what you need to know about tenant screening and why you should partner with an experienced property management firm.
The Importance of Tenant Screening
Not every property manager or real estate agent is licensed for screening the applicants. That’s one reason why it’s extremely important to hire a professional property management company to look at several data points like debt to income ratio, criminal history, rent history, employment and much more to reduce the risk of default or bad debt.
Tenant screening refers to the process of looking into a potential tenant’s background to evaluate the amount of risk they present. For example, an individual with a criminal history of damaging property and committing acts of vandalism is not someone you would want to rent our home to. They might look like the friendliest person in the world, but that doesn’t mean you shouldn’t look into them before letting them into your home as a tenant. That’s why the screening process is so important.
Screening tenants helps protect property owners from potential damage to their homes. It can also help protect you as a homeowner from losing money. Damage inflicted on the property by an unstable tenant isn’t the only risk. Nonpayment is another major risk to consider which is why you should have a professional property management firm perform tenant screening. Partnering with a trustworthy property management company is the best way to protect your property and ensures that your experience with tenants, is a smooth one.
Why You Should Have Tenants Screened by a Property Management Firm
Some property owners might be wondering whether or not there are any advantages to screening tenants on their own. The short answer is no. Although you can take the time to look into some things on your own, it’s typically much more efficient to turn to a property management firm for tenant screening services.
A professional property management firm will think of things that most property owners will not. It will also have access to data sources that most property owners won’t.. When screening a tenant you’ll need a lot of information from the applicants. For starters, you’ll need to know if they smoke, have pets, have a job, and why they are moving in the first place. These are all important things to know when screening a potential tenant.
You will also need some of their banking information and other financial documents to provide proof of income. A property management firm will also take the time to reach out to the applicant’s employers and question their references.
Many property owners make the mistake of agreeing to take on a tenant simply because of their charm and likeability. Remember, you don’t know these people from Adam. Having tenants screened professionally is always a smart idea.
Another reason why you should leave the screening process to professionals is because of the ambiguity of screening documents. A screening document is something that’s prepared to list all of your criteria when screening tenants.
The Federal Fair Housing laws limit some of the criteria that you can legally include in your criteria. Professional property management firms know these laws inside and out and can take the worry out of drafting a screening document. They will also know exactly what to include in a screening document to protect your property.
Partner with PMI Contra Costa CONTRA COSTA
In order to find a tenant you can trust, you need to find a property management firm that can be trusted first. When it comes to screening tenants and property management more generally, PMI Contra Costa CONTRA COSTA is the smart choice. We are the premier destination for tenant screening services in California. We know the business and have been keeping rental properties running smoothly for years.
Want to find the right people to rent to? Get in touch with PMI Contra Costa CONTRA COSTA today! 925-238-9227