When was the last time you checked your tenant turnover rate?
Don't let this metric slip through the cracks. An uptick in this rate will result in higher expenses and less profit. The cost of tenant procurement adds up; you have to consider everything from marketing to background checks.
However, is your current tenant screening process working against you?
Online background check services are notorious for producing incorrect results like the wrong address, birth date, and even names. There are also sites that only draw information from social media and unreliable internet content sources.
Should you outsource your screening instead?
Here are several reasons to choose a property management company that can help.
Tenant Screening From Start to Finish
One common mistake landlords make is not considering the screening process in other strategies, like marketing and maintenance.
Successful tenant screening actually starts with an "ideal tenant" profile. Once you identify the type of tenant you want, you can build an entire strategy for securing that tenant.
This profile should include the following information:
- Desired annual income range
- Employer verification
- Verified government ID
- Past rental history
- Credit scores
If you're allowing pets on the property, you should include this in your profile, as well. Choose a size range for the pet and a mandatory pet deposit amount. Remember, pets are a big draw for responsible tenants, as well.
Once you have your information, your next step is to craft an application. Make this process as convenient as possible. Provide digital forms applicants can fill out on the property management website; paper applications should also be available at open houses.
You can stipulate tenant eligibility on applications to filter out applicants who don't meet the requirements. These requirements should also be clearly communicated in marketing materials, including real estate listing copy. Your property manager will also communicate eligibility requirements in person.
You want to generate a strong shortlist of candidates and implement a screening process that fills vacancies quickly. Remember, you should also communicate to other worthy applicants when their application isn't chosen so that you still have a strong shortlist in the future.
How Property Managers Handle Tenant Screening
The professional tenant screening process starts with identification verification. These IDs include state identification cards and driver's licenses, passports, or other government-issued IDs.
Next, the manager will verify an applicant's current employment situation. This process may include reviewing paystubs, calling employers, or assessing bank statements.
They will move on to reviewing the entire financial picture. Along with bank statements, a property manager will run a credit score check. They'll also call past landlords to learn more about the applicant's history with rent payments.
Next, a criminal background check will take place. Property managers check national criminal databases for this information.
The final step is an in-person interview with an applicant. This process is the first step in tenant-landlord relations. Having a good relationship with a property manager is vital to the tenant experience and generating lease renewals.
Find the Best Tenants Possible
Don't treat your tenant screening as an afterthought. A secure process is crucial to your bottom line. Remember the above points when attracting and retaining quality tenants.
Let PMI Davis Realty be your guide in tenant screening. We offer a full suite of services for owners like you. Give us a call today!
