One landlord in Niagara Falls offered a delinquent tenant $10,000 so that they could vacate the rental property. The tenant refused the offer, forcing the landlord to pursue a lengthy and costly legal eviction process.
Such horror stories aren't uncommon. As a landlord, what steps are you taking to avoid being the victim of a nightmare tenant?
Tenant screening is the solution, but it requires time and expertise; both of which you might not have. You don't want to skip the process because you know its benefits, which is why you're considering outsourcing it to a third-party service provider.
Is it a good idea?
Comprehensive Tenant Screening
Tenant screening involves checking the renter's:
- Credit history
- Employment history
- Rental history
- Criminal background history.
You might also want to conduct an interview and even call up a few of their references just to verify that all the information they've given you is accurate.
If you're a DIY landlord, you might be tempted to skip some of these checks, especially if you're reviewing several applications. In fact, you may only focus on the applicant's financial wellness. Anything other than a comprehensive screening can expose you to problem tenants, though.
Reputable tenant screening companies don't cut corners. They check and verify all the details, ensuring every approved applicant is a quality tenant. So when you outsource, there's a greater chance of getting the best tenants every time you need to fill a vacancy.
Legal Liability Protection
Landlords have a right to perform tenant checks, but there are also federal and state laws that protect renters from discrimination.
You can reject a renter based on their credit history, but you cannot reject them because of their race, gender, religion, nationality, or other protected characteristics. If you're not well-versed with fair housing laws, it's easy to violate a renter's rights or unknowingly act in a discriminatory manner, potentially exposing yourself to lawsuits.
When you outsource tenant screening, you significantly reduce your exposure to such risks. Screening companies have professionals who understand fair housing laws and are unlikely to discriminate against renters.
Save Time (and Money)
Tenant background checks can take several days depending on the kind of information you've requested. Keeping your rental property vacant as you strive to screen applicants results in lost rental income, the importance of tenant screening notwithstanding.
Outsourcing can help you save time, and by extension, money. Screening companies have the expertise to expedite renter checks while maintaining a high level of accuracy in picking the best tenants. Some companies are investing in AI technology, making the screening process almost instantaneous.
Quick screening turnaround times mean a higher occupancy rate for your units.
Smart Landlords Outsource Tenant Screening
Finding tenants who you can rely on to pay rent on time and take good care of your property is your #1 priority as a landlord. This is achievable through comprehensive tenant screening - and outsourcing the service is the way to go.
Stinger Home Management offers a suite of property management services, including tenant screening. Several landlords in Beaufort and Port Royal rely on us to fully manage their properties.
Contact us to learn more about our services.
