Securing the best tenants is the goal of every rental property owner, but what is the ideal tenant? Excellent renters have several characteristics to look for. Once you place them in your properties, you will notice the difference between “good” renters and “bad” ones!
Some markers of an ideal tenant include:
Experienced property management companies can tell you that having the ideal tenant makes life easier for investors—but unfortunately, good tenants don’t always happen without a thorough screening process.
Letting new renters move in on a whim to end a vacancy is not the best way to find ideal tenants. Without a screening process, you don’t know who you may end up renting to. Instead, property owners need a more “scientific” approach or method proven to deliver results (and better renters). The primary tool property managers recommend to help owners find quality tenants is a tenant screening process.
A thorough background review of every applicant is the only way to ensure that you’re placing residents that will be good for your rental property and bottom line. Utilizing a comprehensive process for weeding out potential troublesome tenants can save you plenty of hassles and income loss in the long run. So, how should property owners approach a review process to find better renters? We’re glad you asked!
When you think about screening tenants, you may wonder what is included in tenant screening that helps property owners avoid bad tenants? It’s essential to screen tenants thoroughly—while also following the law. Otherwise, you won’t have an accurate picture of the type of person you’re about to place in your property.
Some of the vital aspects that should be part of your tenant screening process include:
If you are not doing all of these steps (and in detail), it may be time to update your screening process.
Managing successful rental properties is a large undertaking, with many responsibilities involved. Taking on the task of screening each and every tenant you want to put in your properties may not be something you want to do. Many property owners find it more beneficial to simply outsource this task to a Jacksonville property management company. Here’s why!
Although owners would pay a property manager to outsource this job, they often experience more overall savings than when using multiple services to review different aspects of a prospective tenant’s history.
For example, obtaining extensive background checks is costly when using multiple resources. When doing it on your own, you’ll pay a fee per applicant for a credit check, criminal history, employment verification, and more. However, if you outsource the job to a property management company, they will be able to secure savings due to the high volume of property owners and tenants they put through their screening process.
Also, some companies make tenant screening part of their routine property management services without additional fees.
It can be tiresome to go through the hoops required to run a thorough screening. Depending on the number of applications you receive for a vacant property, processing several screenings to find the right renter can be a lot of work!
Also, you never have to be the one that tells a potential renter that some red flags came up during the background review; your property owner communicates with applicants on your behalf.
Companies that specialize in running background checks on tenants will have precise tools and software to detect problem tenants. They also have the experience you need to recognize red flags and choose the best quality renters for your properties. Thus, you get a higher rate of accuracy and a lower potential that bad tenants slip through the screening process and have an opportunity to move into a property.
So, just who are these bad tenants you don’t want to live in your properties? What types of people will cause difficulties for your investment properties? Let’s take a look at some of the traits of a bad tenant:
Of course, every situation and tenant is unique. So, while one bad mark on a record might not mean a person will be a bad tenant for you, it’s helpful to have a property management company with experience running the screening check to be sure. Once you place a bad tenant in your property, it’s not worth the problems and added expenses to deal with the problems they cause
By investing in resources and tools to weed out these tenants, you will avoid the high cost of bad tenants. Some of the ways bad tenants become expenses problems include:
The right property manager helps rental owners find better tenants to optimize returns!
In some cases, it’s easy to spot some of the signs that make a bad tenant. However, not every “bad” tenant shows signs of impending disaster during the screening process. An experienced property management company can help you avoid two categories of renters that can lead to trouble.
Professional tenants are not always on the radar of basic tenant screening tools. Therefore, you may need a more sophisticated approach from Jacksonville property management experts to weed these individuals out.
A professional tenant is labeled as such because they know how to take advantage of rental property owners. They are often familiar with the eviction laws, rental regulations, the Fair Housing Act, and more. They know that once they get into the property, you will have a hard time getting rid of them because they know how to "work the system."
While these applicants often seem like they’ll be good tenants during the interview process, they often have holes in their stories and subtle signs that they plan to cause problems after moving in. Professional tenants don’t pay the rent, often cause property damage, and leave before the lease term ends (without notice).
However, a property management company that utilizes quality screening tools will be able to detect these individuals based on their history, which may include lawsuits, bankruptcy, evictions, inconsistent rental history, problems with past landlords, and other issues.
It may seem like a great idea to have your best friend or family member move into your rental property. You probably know their job status, income level, and background, and it all checks out great! Right? Wrong!
Property managers often warn to never rent to family or friends. As much as you know their history and work situation now, things can change. When a friend or family member stops paying rent, it can be challenging to be the “landlord” and enforce the rules.
It’s rarely good to mix business and personal relationships when operating rental properties. However, if you plan to rent your property to a friend or family member, make sure they sign a lease, pay the rent on time, and follow the rules.
Screening out the bad tenants isn’t all you should do to ensure you have the best people renting your property. However, you can be proactive with your rental investments to attract good tenants.
If you operate a top-quality rental property, you’re more likely to attract top-of-the-line residents. In addition, renters will be satisfied with the home and service they receive and will likely want to renew their lease when it’s due to expire.
Some ways to ensure you’re attracting quality tenants that stay for more than one lease term include:
Connecting with the right tenants and keeping them at your property is a priority for investment rental property owners and better returns! Using the tips we’ve talked through today can set you in the right direction for success.
