Did you know that around 36% of the population in America rents rather than owns their homes?
Even though tons of people rely on rentable homes, not all tenants are created equally. If you want to get the most out of your real estate business, then it's crucial to take tenant screening seriously.
Have you ever wondered, "What is tenant screening good for exactly?" Read on to learn the top five mistakes you don't want to make so you can understand the value of screening.
1. Rushing Through the Tenant Screening Process
One of the most common tenant screening mistakes is rushing through the process. Screening takes time and time costs money, so it's understandable why you may feel antsy to move tenants in as soon as possible.
The key to maximizing your profits is to find top-notch renters, though. If you feel like you're juggling too many responsibilities as a property owner or landlord, then you should team up with a property management company that can tackle tenant screening on your behalf.
2. Overlooking Proof of Income
It's true that a person's credit score can reveal a lot about their finances and how responsible they are. Even if someone has a clean credit score, this shouldn't stop you from looking into their current finances.
It's always wise to request proof of income. This will give you peace of mind that they'll be able to cover rent.
3. Not Contacting References
Out of all of the tenant screening tips out there, you can't forget to get in touch with applicants' references. Getting some outsider opinions will allow you to judge someone's character better.
The references that you should hold in the highest esteem are employers and past landlords so you can learn how reliable an applicant is.
4. Not Paying for a Thorough Background Check
Background checks are the best tool you can use to protect your property.
Letting people with a criminal history live on your property may make other tenants uncomfortable and increase the risk of crime. You should never skip this step to save time or money since so much is on the line.
5. Taking on the Application Fees
Most landlords nowadays charge an application fee to cover the costs of researching each potential tenant. Since investigating every applicant would be expensive over the years, you should request interested renters to cover the bill.
This will also allow you to use resources on people who are serious about moving in.
This Tenant Screening Guide Will Keep Your Property Safe and Lucrative
The many tenant screening benefits can't be highlighted enough. Now that you've learned more about the most common tenant screening mistakes, you can ensure that your business thrives over the years.
Owning property is extremely profitable, but there are a lot of bases you'll have to cover to protect your investment. Do you want to make your job much easier? Contact HomeRiver Group so you can learn about our outstanding property management services in Southern California.