Tenant screening is the cornerstone of successful property management.
Separating profitable investments from costly headaches.
With the right tenant screening process, landlords can safeguard their valuable assets while ensuring reliable income streams for years.
This is the fourth of seven key factors in a recent video titled “How to Choose the Right Property Manager.”
Episode 14 – Tenant Screening
Landlord Tips a Game-Changer: Reduce Stress and Hassle, Increase Profits.
Short, sharp landlord tips.
TRANSCRIPT
Number 4 of these key factors is Tenant Screening.
Finding good tenants is like choosing business partners. They’ll care for your valuable investment, so prudent tenant selection is essential.
So what makes a solid tenant screening process? Let’s break it down.
1️⃣ Rental History & References
A good property manager will check rental history and references. They’ll contact previous landlords to ask questions like: Did the tenant pay rent on time? Did they look after the property? Would they rent to them again? And were there any tenancy breaches?
Character references are important in professional settings like work but generally do not come from family or friends. Think of it this way: in principle, it’s like applying for a job.
2️⃣ Background Checks
A thorough background check helps verify a tenant’s trustworthiness. This process includes reviewing criminal history, tenancy tribunal records, and court cases and conducting Google searches to uncover any potential issues.
3️⃣ Credit Checks
Credit reports give a clear picture of financial responsibility. A history of unpaid debts or defaults could signal a risk. A good tenant should have a stable income and a strong record of paying bills on time.
That said, experience may indicate the odd exception, for example, exceptional landlord-tenant history with no rent arrears.
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..
A robust tenant screening process leads to fewer problems, greater stability in tenancies, and improved returns on your investment.
If your property manager is not performing thorough screenings, it’s time to question why.
Done correctly is like laying a strong foundation when building a house. Everything else depends on this.
I hope that helps. We’ll catch you next time.
Making life easier for landlords is what we do.
No comment yet, add your voice below!