Are you serious about making real estate investing your full-time career?
It's always a good idea to start a real estate portfolio that's built to scale from the beginning. Once you purchase your first rental property, you'll learn how quickly responsibilities pile up. That's why investors turn to outsourcing.
Outsourcing lets you focus on building your portfolio and acquiring the financing you need to grow.
You can outsource a range of duties, from property marketing to rent collection.
However, is outsourcing your tenant screening to another company the best idea?
Learn more in this essential investor's guide.
Ideal Tenants Provide a Better ROI
As a rental property investor, return on investment (ROI) should be at the forefront of your mind. Ask yourself how you can keep expenses low without sacrificing a quality property or tenant experience.
You must invest in finding the right tenants for your properties.
First, create a profile of your ideal tenant. On-time rent, great communication, good behavior, and an excellent credit score are key qualities. Ideally, you want these tenants to stay long-term to avoid turnover, move-out cleaning costs, additional marketing, and tenant procurement costs.
Together, the above points will deliver a higher ROI on your property investments.
How to Find the Perfect Tenant
You know the type of tenant you need, but procuring them takes work.
Once you list a property for rent, expect an influx of applications. You'll learn quickly how invaluable a tenant screening service is for your portfolio.
You need more than just a basic background check service. These online tools and services don't always yield accurate information.
An experienced property management company will conduct a thorough screening of each prospective tenant.
This screening includes:
- Criminal background check
- Rent payment history
- Landlord-tenant relations
- Credit check (and income)
Your property manager will also conduct interviews with tenants about their lengths of stay. Interviews with past landlords will also take place.
You don't have to worry about paper applications that get lost in the shuffle, either. Property management companies simply direct leads to fill out online applications. These applications are much easier to process.
Beyond Tenant Screening
Outsourcing these tenant screening duties to experienced property managers will yield quicker results. Vacant properties are expensive. A property manager will ensure a tenant is lined up before the last one officially moves out.
It helps to think of tenant procurement as part of the property marketing process. Attracting the right tenants requires showcasing your property in the best light. You'll need real estate photos, listings, and even social media marketing.
Property maintenance also plays a role. You must keep up with property repairs and upgrades to attract (and keep) ideal tenants.
Generate More Rental Income With Better Screening
You'll be surprised to learn how effective tenant screening outsourcing is for rental income. Ensure you're procuring only the best tenant candidates for your property. Even better, tenants who stay for the long haul.
Chosen Property Management wants to help you procure more tenants for your rental properties. Learn more about our tenant screening services or contact us today to hire an experienced property manager.
