We’ve all been burned before. Whether it’s arriving to your match.com date only to find that you don’t recognize the person from the photos, or realizing the so-called publishing job of your recent new hire was probably something more like a paper route. When you’re responsible for calling the shots, nothing is worse than feeling like you’ve been duped into making a decision that is less an ideal. This applies especially to landlords looking to find the right high-quality tenants for their properties.
For this reason and so many more, savvy landlords go the extra mile on the front end to thoroughly screen tenants. A well-defined system to organize and evaluate candidates on a pre-determined set of criteria allows property managers to make judgements and weigh applicants impartially. It also helps to verify the gut feelings you may already instinctively have about a candidate. Even if you don’t take stock in the cautionary tales listed above, there are many other reasons why a tenant screening process will greatly benefit your business as a landlord.
Avoid Getting Dragged Down by Low-Quality Tenants
Once a lease is signed and a tenant is officially renting your space, it can be incredibly difficult to make changes to that arrangement. Meaning, even if you are experiencing significant issues with a renter right away, it can still be very challenging and near impossible to actually evict them.
If you are thoroughly screening tenants on the front end, checking their eviction histories and contacting past landlords, you should be able to avoid getting saddled with anyone who might become a repeat offender. In the long run this saves you time, money, and, most importantly, a great deal of headache.
Boost Your Business with High-Quality Renters
On the other end of the spectrum, having good, reliable, and respectful tenants in your properties can energize your business in a myriad of ways. Not only will you not have the constant stress of worrying about what kind of state your space might be in, but time otherwise spent toiling away on eviction proceedings can rather be channeled back into the business. When you’re not spending time you don’t have backtracking on your decisions, you can really focus on growing your business. Future candidates will catch on quickly and be attracted to the caliber of company you keep.
Legally Protect Yourself and Your Business
Not only doesn’t the employment of a tenant screening system aide and expedite your process, but it also serves in protecting you from potential lawsuits. According to the Fair Housing Act of 1968, it is against the law to discriminate against a tenant on the basis of race, religion, national origin, sex, or handicap status. But how would you argue in a court of law that your decisions were not based on any of these things?
The answer is proof. As long as you are adhering to a pre-determined screening process and keeping good record of that system, you will have no problem proving your case and protecting your business.
Steer Clear of Evictions
The dreaded “E” word is the last thing any landlords wants to hear, much less think of. Failure to perform a thorough screen of a candidate’s background is like leaving the door forever open to the possibility of eviction. On the flipside, investing the time up front in doing your research on an applicant can permanently calm your nerves and quell those fears. And if things still do end up going awry, you’ll at least have the peace of mind of knowing that you did everything in your power to prevent it.
Reduce Your Tenant Turnover Rate
Attrition rates are closely and constantly monitored by the world’s most successful businesses, and there’s good reason for that. Employers know that the cost of finding new employees and bringing them onboard is expensive and critical to their bottom line.
The housing market is no different. In fact, the turnover rate in this business is even more important. Because not only is it expensive to market a vacant property, but you’re also losing dollar signs every single day it remains uninhabited. Spending the extra time to vet and find reliable tenants will increase the likelihood of them staying for a longer period of time, which translates directly to money in your pocket.
Whether it’s increasing the rate of growth for your business or simply avoiding the headache and hardships of eviction proceedings and fair housing lawsuits, there are so many reasons to level up and improve your tenant screening process. On paper, anyone can look like a rockstar. But the process of choosing someone to permanently rent your property should amount to so much more than a blind date. Don’t get catfished by crooked candidates. Cast your line intentionally, do the research, and you’re sure to end up with a truly great catch.
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