You've used our tips to attract new tenants to your property and are now sorting through rental applications. How can you decide which tenants to rent to and which to deny?
Choosing the right tenants should include more than asking for proof of income and making sure they don't have pets that violate your lease.
Bringing on a new tenant means taking a risk. With tenant screening services, that risk becomes far more calculated and you'll start to see better outcomes.
Read on for three reasons why you need tenant screening services if you don't already have them.
1. Verifying More Than Income
Naturally, you want to know if your tenant can afford rent. It's common practice to ask for proof of income to ensure that an applicant makes more than enough to make rent payments each month. However, tenant screening goes a step further by including full credit checks.
A credit check can reveal a lot more than income. When you ask for an applicant's credit report, you'll find out about their credit history, current and historic debt, and (in some cases) rental history. An applicant with a good credit history is more likely to pay off debts like rent in a reliable manner.
2. Protecting Your Investment
Collecting rent isn't the only thing you have to worry about when you're renting out your property. You also want to choose tenants that will help protect your investment by taking care of their unit and preventing unnecessary damage.
Tenant screening services can (and often do) involve a criminal background check as well as a rental history check. By contacting an applicant's previous landlord, you can discern whether or not they left their unit in good condition. While collecting security deposits can protect your financial assets, a good tenant can reduce the odds of having to address major damage in the first place.
3. Finding Long-Term Tenants
Ultimately, any property owner should work toward the goal of reducing tenant turnover. This starts with attracting the right tenants to sign your lease agreement. Tenant marketing can widen your pool of applicants while tenant screening can narrow down your prospects to the best choice.
For starters, you want to lease to renters that you won't have to evict for late payments or lease violations. However, you also want to choose applicants who are likely to stay longer than a single lease term. The best tenants have a reason to stick around (like a stable job) and the ability to keep up with increasing rent over the years.
Need Tenant Screening in Teton Valley, Idaho?
If you're not using tenant screening services for your Teton Valley properties, you're not attracting the best tenants. Screening tenants can go a long way toward matching property owners with reliable tenants who will pay rent on time and take good care of their rental units.
PMI Grand Tetons can help. We provide full real estate asset management and know the Grand Tetons region like the back of our hands. Learn more about our tenant screening services today.