Did you know that over a third of households in the United States rent their homes, rather than own? Renting offers convenience and allows more flexibility. Owning rental properties is also beneficial for investors and property managers.
One of the key steps in renting out your property is conducting a tenant screening. Here are some of the benefits of using a tenant screening process to find the best rental applicants.
Collect Rent and Bills on Time
If a tenant cannot pay on time, it may cause issues with trust and even their credit score. A background check during your tenant screening can reveal their credit score.
Credit scores factor in on-time payments as one of the biggest indicators of financial responsibility. If your rental applicants have a high credit score, it is likely that they make payments on time and consistently.
Keep Your Property Secure
A good tenant screening will also include a criminal background check. This background check will let you know if your candidate has been convicted of any felonies or misdemeanors.
Although every situation is different, there are obvious circumstances that can rule out certain rental applicants. For instance, if someone went to jail for drug usage, theft, or property damage, they might not be the best person to rent your property.
Learn About Applicants' Finances
Even if a tenant has a good credit score, they may hold a lot of debt or have a high debt-to-income ratio. This may cause problems when it comes to paying the required amount of rent.
If an applicant is desirable but does not have enough on paper, you can offer the option of co-signing. They can have someone with financial resources or a higher credit score sign the lease as collateral. If the tenant fails to pay the rent, you can have a backup option to collect on your rental properties.
Worry Less About Evictions
Eviction can be a costly process that stresses out the property manager and the tenant. It can quickly turn into a hostile situation where you need to get the authorities involved if your tenant refuses to leave the property.
In some states, laws for squatters include squatters' rights, which can slow down the eviction process as well. Rather than worry about having to evict your tenants, you can rule it out with a tenant screening.
Past evictions remain on the public record for seven years. If your tenant has previous evictions, then it may be too much of a risk to offer a lease. Find tenants for your rental properties that have no previous evictions so you can have more peace of mind.
Perfect Your Tenant Screening Process Today
Tenant screening does not have to be a daunting process. With these benefits, you can find the best tenants to rent your property.
Are you interested in investing in rental properties or going into property management? Check out our site or contact us today for answers to all of your questions.