How Property Managers Find the Best Tenants
Anyone that has ever owned a rental property will tell you that the tenant that they entered into a lease agreement with has often defined their experience as a landlord. I wish I could say that every tenant paid rent on time every month, always kept the home clean, and never broke anything, but unfortunately this is not always the case.
If you have ever been in the position of having to evict a tenant, you know that dealing with a bad tenant can be very painful experience. The process can drag out over the course of several months and you may find that your property was not taken care of.
So what can you do to ensure that your property is only rented to quality tenants? Hiring a good Property Management Company can help to eliminate the risk of renting to a bad tenant. Many people feel that they should not pay someone to do a job that they could do themselves, but the truth is, if a property management company can help an owner avoid entering into an agreement with a bad tenant, they are worth every penny that you will pay them.
So how will a property management company find me a quality tenant? Property managers will complete due diligence on every potential tenant that may rent your property. Three of the most common checks are:
- Background Check – A good property manager will perform a thorough background check on anyone that is interested in renting your property. This will help you to identify anyone that is a convicted criminal and avoid entering into an agreement with such individuals.
- Credit Check – Reviewing a potential tenant’s credit report may be one of the most important actions you take before entering into a lease agreement. If the potential tenant has a poor FICO score and has had past issues paying his/her bills on time, you will probably not want to enter into an agreement with this individual. A good property manager will review these credit reports and advise of any issues.
- Landlord References – It is always prudent to follow up with a potential tenants past landlords to determine if he/she had any issue with other properties that they have rented. If the tenant broke belongings in the previous unit, you may be hesitant to rent to this person for fear that they may destroy your property. A good property manager will reach out to all former references of the potential tenant.
No one can ever guarantee that a tenant will be good or bad, but you can take steps to reduce the risk of renting to a bad tenant. You may want to consider using a property management company to help you do the necessary research in finding a quality tenant.