Have you been struck with a string of difficult tenants? Are you trying to secure tenants with long-term potential but can't find any luck?
Asking these important questions is the beginning of a new approach to tenant placement.
Your tenant turnover rate is one of the most important metrics in rental property investing. This fact becomes all too real when you consider the costs of yearly marketing, property taxes, and other fees.
Securing a responsible, long-term tenant also saves time and money on tenant background check services; this factor leads to the next important point.
A background check isn't a five-minute process. Leaving it to the last minute or skimming over important details can lead to the wrong tenant.
Instead, consider the following points when designing your tenant procurement strategy.
A Tenant Background Check You Can Trust
If you search online for background checks, you're going to find page after page of results in Google. However, despite advertising quick results, these sites may not yield the reliable data you need for a complete background check. In fact, many of these services extract data from social media profiles, online addresses, and other unreliable data sources.
The above concerns speak to the necessity of hiring a property manager from the beginning. This means you get a real person on the job, resulting in more thorough and reliable background checks.
Professional property managers don't use online background check services. Instead, they investigate national databases directly for any criminal history, past evictions, and previous addresses.
Plus, online background checks can't call application references like a property manager can.
Why the Application Process Matters
The more thorough the application, the more robust the background check. These processes should go hand in hand.
It also echoes the importance of hiring a real estate professional to draft your tenant applications.
They'll ensure fields are available for the following data:
- Contact information
- Past residences
- Current and past employment verification
- Application references (landlords, roommates, etc.)
- Pet information (size and type)
- Financial documents (paystubs, bank statements, etc.)
The above information will paint a clearer picture of the leads' financial situation, long-term potential, and tenant-landlord relations.
By calling references, a property manager can get an even clearer picture of noise levels, rent payment history, and communication.
Is there a history of property damage?
Finding out this information is so important for your bottom line. Past landlords can discuss their experiences with the applicant's behavior. You can also search legal databases for any past evictions or lawsuits.
How to Find a Property Management Company
You'll need the right property manager to conduct a strict background check.
Start with a consultation to discuss your needs and learn more about their background check protocol. This is a good time to discuss any concerns about tenant turnover rates and compliance.
It also helps to talk to a real estate lawyer.
Procure the Best Tenants
Don't risk the cost of a bad tenant. A thorough tenant background check will do wonders for your profit margin and tenant experience.
Keep this guide handy as you research your options.
HNN Atlanta, INC. has a team of property managers ready to answer your questions about background checks. Browse our property management services or call us today to learn more.
