Is Outsourcing Your Tenant Screening Process a Good Idea?
Are you pulling your hair out over troublesome tenants who pay rent late, ignore your rules, and damage your property? Learning about tenants before they rent a property is essential. Otherwise, they could cause more trouble than they're worth.
About 90% of landlords use some form of tenant screening reporting to assess applicants. You can outsource your tenant screening process to save time and money.
Not sure if you want to hire a property management company to review your rental applications? Read on to discover the benefits first!
Find Great Tenants
As the rental vacancy rate in the US continues to increase, you may struggle to find renters. Remember, finding great tenants can help you avoid stressful situations. It will also ensure you generate revenue from your investment properties on an ongoing basis.
Outsourcing your screening process to a property management company can help you find reliable tenants. Once you find great tenants you trust, you can retain them long-term.
Generating more lease renewals will save you money on marketing and long vacancies. You'll have the peace of mind knowing you can trust your property with a reliable renter. Increasing your retention rate will maximize your earning potential.
Screening every applicant can steal valuable time from your already busy schedule. Whether you own one property or several, the process can become time-consuming. If you rush through the process, you may neglect important information.
Outsourcing will save you time. Your property managers can handle this task on your behalf. They'll work efficiently and quickly, allowing you to focus on other responsibilities.
The sooner the process is complete, the sooner you can maximize your occupancy rate. Otherwise, your vacant units will start seeping money from your accounts.
Allowing a property management company to review your rental applications will ensure consistency and accuracy. Unfortunately, the information included in automated reports isn't always accurate.
The Consumer Financial Protection Bureau received 26,700 complaints related to tenant screening between 2019 and 2022. About 65% of these complaints were due to inaccurate information appearing in the reports.
If you choose the do-it-yourself option, you may rush through the process. You could miss something, make mistakes, or fail to gather the right information.
Gathering consistent, accurate reports will help you make more informed decisions when choosing applicants. Learning about tenants is easier when you have thorough reports, including:
- Criminal background checks
- Employment verification
- Statements from previous landlords
- Credit scores
You'll need to follow the Fair Housing Act's rules and regulations when screening tenants. Otherwise, you may get in legal trouble or receive a fine.
Outsourcing will ensure you remain compliant. Choose a property management company that understands local laws and regulations. Their legal services and expertise could save you from a stressful situation later.
Outsource Your Tenant Screening Today
You don't have to complete your tenant screening process alone. Instead, consider outsourcing this year. With help from a property management company, you can find great tenants you can trust with your properties!
PMI Lafayette has nearly 20 years of experience helping landlords like you maximize their earning potential. We use state-of-the-art technology to save clients time and money.
We're the top property management company with the awards to prove it. Contact us today to request our screening services!