It's not uncommon for rental property owners to be tempted to overlook screening prospective renters. If you're a DIY or first-time landlord, you might not have the necessary expertise to do comprehensive tenant screening.
Unfortunately, skimping on tenant screening is a sure way to rue the day you decided to invest in a rental property. You've probably heard several stories of tenants from hell, told by landlords who most likely weren't keen on renter screening.
Read on to learn why it's necessary to screen a rental application.
Maximize Your Rental Revenue
You invested in a rental property primarily because you want to earn a steady passive income. You'll achieve that goal when you have a property that's occupied by rent-paying tenants.
Without tenant screening, there's no guarantee you'll find such tenants. If you don't verify a rental applicant's employment information and it turns out that they're not even employed at the moment, who will you blame when the said tenant is unable to pay their rent?
As such, tenant screening is a crucial function for every rental property owner who wants to earn a steady rental income and maximize their revenue.
Protect Your Rental Property
Imagine having a tenant who decides to go on a rampage, breaking windows, destroying HVAC equipment, and causing other kinds of damage. Or they can keep pets that cause damage to the floors and walls.
Doing a comprehensive tenant background check is an effective way to protect your property. By looking into a tenant's rental history and calling some of their previous landlords, you can tell a lot about a tenant's behavior. You'll be in a better position to keep people who are likely to use your property irresponsibly from becoming your tenants.
Protect Your Tenants/Community
If you have a multi-unit property, you have a responsibility to provide a safe and secure environment for everyone. You don't want a situation where a few rowdy tenants disturb the peace of everyone in the building.
To ensure a thriving community, tenant screening is necessary. You'll identify renters who have a history of lease violations, as those are most likely to cause disturbances.
If you don't screen renters and bad tenants end up in your property, they could affect the quality of life of other residents, causing them to want to move out. This will lower your occupancy rate and hurt your property's reputation, further discouraging prospective tenants from wanting to live there.
Don't Skimp on Tenant Screening
Tenant screening might be one of those landlord functions that seem tedious and unnecessary. However, it goes a long way in making you a successful landlord.
The good news is you don't have to do it yourself. You can always hire a property manager to handle it. In that case, PMI Real Asset MGMT is at your service.
We are a full-service property management company serving rental property owners in Howard and Anne Arundel Counties. As part of the PMI franchise network, we have the technology and experience to give you the best service.
Contact us today.
