According to TransUnion SmartMove data, the average renter’s ResidentScore was 650, down 14 points in a year-to-year comparison. When you rent out one of your properties, you take the risk of renting to people who are somewhat “less credit-worthy.”
Owning rental property is always a risk whether it be trouble with tenants, issues with the property, or security problems. Most of the time, the rewards outway the risks or people wouldn’t get involved in these types of real estate ventures.
As a landlord, what can you do to protect yourself? There are many advantages to using tenant screening services. Keep reading to find out why a tenant screening report is a vital tool for landlords.
Reduce Tenant Turnover
When you use a tenant screening protocol, you have a better idea of who is going to be living in your rental property. When you get good tenants, they’re likely to stay around. This saves you from having to clean out the place, list it, and lose money on an empty place every year.
Limit Criminal Activity
When you properly screen people, you can weed out those with serious criminal offenses and evaluate other offenses on an individual basis. Someone with a minor offense can still be a perfectly good tenant.
Check Payment and Financial History
When you do the background screening, an important piece of the puzzle is information and references from previous landlords and employers. Has the applicant paid their monthly rent on time? Has he or she been able to hold down a job? Can the applicant afford the rent based on their monthly earnings?
Avoid Legal Problems
When you employ a well-rounded screening process and act in a consistent manner for every applicant, you can show that you have legitimate and justified grounds for denying applicants based on problems in their background. You’ll have consistency on your side if there are any questionable denials.
Peace of Mind
You don’t go into this type of real estate with thoughts of the worst-case scenarios. You hope to get decent tenants who pay the rent on time every month, take care of your place, are responsible, and act as good neighbors. Using a reliable and consistent screening process helps you choose the right tenant.
Need a hand with tenant screening or other management services? Check out some of these services from a reputable management team with the best tenant screening services.
Tenant Screening Background Check
Now that you know the benefits of tenant screening services for landlords, will you employ this type of service before renting out your property or properties? It’s important to do what you can to protect your investment. One bad tenant can give you a whole host of problems.
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