Your rental income strategy starts with the right tenants. How do you avoid the pitfalls of tenant management?
Tenant management starts with a thorough screening process. One mistake landlords make is running their own background checks through a singular screening service. These services miss crucial details like past landlord interviews and eviction history.
Property managers, on the other hand, take the initiative to conduct rigorous screenings.
Get an inside look at this tenant screening checklist:
Comprehensive Financial Screening
Another mistake new landlords make is assessing income only. Property managers should also screen for the following data:
- credit scores
- debt to income ratio
- employment verification
The above data points help prove if a lead has the money to pay rent if they're laid off and so forth.
Interviewing past landlords will also shed light on a lead's past rental payments. Were they behind on rent? Did they receive past-due payment notices?
These points also speak to the importance of having a streamlined rent collection system. For example, Harland Property Management has an online portal tenants can use to pay rent. Tenants have more than one choice for payment.
Screening Tenants For Past Behavior
You want tenants who won't damage property, force noise complaints, or trigger neighbor conflicts. A good property manager will call past landlords to assess a lead's past behavior. Excellent landlord-tenant relations results in less turnover and consistent profits.
As expected, this tenant screening section involves criminal background checks. Property managers also check multiple national databases for more information.
Great Tenants Communicate
The best tenants also submit maintenance requests. This ensures that minor issues don't turn into costly repair jobs, like water leaks. This point speaks to the value of having an online maintenance request portal for tenants.
The above point also echoes the importance of having stellar property maintenance. A great property manager will visit units to assess repair but will also be available to service requests. Property management companies work with local vendors to service everything from HVAC installations to gardening.
Add Applications to Your Tenant Screening Checklist
You can also view tenant applications as the first step of the screening process.
Online applications make the process even easier. Leads can view eligibility requirements before applying. This helps property managers sift through applications quickly so that the right tenants don't go unnoticed.
Finding Tenants With Marketing
How you market your properties makes a significant difference.
Similar to applications, real estate marketing helps attract the best tenants to your property. Again, clearly discuss those eligibility points for income, credit scores, and so forth. You can also mention that past landlord calls will be conducted.
Including the above information in your listings will help regulate traffic at open houses. Focus on attracting the most serious renters.
Discover More Landlord Tips
A strict tenant background check is the key to a successful rental income business.
Add the following to your tenant screening checklist:
- financials
- past behavior
- communication
- applications
- marketing
The experts at Harland Property Management want to help you get your rental off the ground. We pride ourselves on communication, negotiation, and excellent tenant and owner experiences.
Get a free rental analysis today or contact us to talk to a representative.
