It doesn't matter how well prepared you are as a landlord if you don't screen your tenants. Tenant screening can make or break your rental experience and make or break your investment property. So, how can you guarantee that your screening will be a success?
Renters make up over 36% of American households in the US. If you have solid rental marketing, you will likely get many applications from renters in areas such as North Carolina. So, what is tenant screening, and how does it help?
Tenant screening helps you filter through applications and find trustworthy tenants you can count on. The best way to approach tenant screening is to learn from these four mistakes and make sure you avoid them.
1. Not Including a Rental Application
You need a rental application to complete other aspects of tenant screening, such as running a background check and talking to references. The rental application is also the perfect pre-screening, so you can rule out specific candidates. It can be the ideal solution to save time and only interview candidates that have the potential to be appropriate tenants for your property.
Not including a rental application will make tenant screening more time-consuming, and you could experience legal issues if you have not gotten explicit permission to run checks.
2. Ignoring Background and Credit Checks
Tenant screening advice always includes running the proper checks on tenants. These checks include credit and background checks. It is vital to have both, so you can look out for red flags such as unpaid debts, poor credit score, and a criminal record.
It is essential not to be discriminatory if a candidate has a criminal record. After all, 1 in 4 American adults has a criminal record. So, it is important to judge it on a case-by-case basis.
3. Failing To Verify Identity
Failing to ask for photo and identity verification can ruin your tenant screening process. Failing to check could lead to costly issues at a later date. Be sure to keep a copy of the photo ID during their rental and be wary if they fail to provide any way of verifying their identity.
It is also essential to check references to help verify their identity and ensure you have up-to-date information about the tenant.
4. Not Asking for Help
The tenant screening process takes time and commitment. As a landlord, it can be tempting to skip essential steps or skip screenings altogether. However, there is a much better solution; get support and reap the tenant screening benefits.
You can use a property management company to oversee the tenant screening process. They can keep the process consistent and have the resources to make it as efficient as possible.
Successful Tenant Screening
You can make many mistakes during tenant screening, but this tenant screening guide includes some of the top ones to avoid. The best way to guarantee tenant screening runs smoothly is to hire a property management company. A property management company can oversee many aspects of your rental property management, so you can get maximum returns on your investment property.
If you are based in North Carolina, get in touch with Home River Group. We offer a variety of services, including quality property management.
