Have you ever had a property stay vacant for so long, that you decided to rent it without doing the proper due diligence, such as criminal background checks, reference checks and employment inquiries? Have you used or thought about using a similar eye-catching headline like this, "Hot Property, Won't Last, No Credit Checks, Rent Now", just to get someone in your property? Then, after renting the property to them, you soon realized that you made a huge mistake? If you answered yes or maybe to either of these two questions, then you may have cost your business much more money then you realize, not to mention frustration.
It is very important to do proper due diligence before just letting anyone rent your property. Yes, times are hard for many, and you may need money quickly, but is it worth it to put your property at risk and your business name just to make a quick buck, probably not? It's apparent that renting homes, apartments and condominiums are on the rise and more and more people are taking advantage of the many rental properties that are on the market today. However, before you rent to just anyone, please review these tips before you make a decision you may regret later.
Here are 5 Reasons Why It Is Important To Do Tenant Screening:
- Your Reputation. One of the most important goals of many landlords is to keep their units filled. Therefore, the last thing you want to happen is a high turnover in your properties because you've allowed disruptive tenants to move in. Your reputation is on the line when it comes to having good tenants with acceptable background checks in your properties.
- Your Property. Having disruptive or malignant tenants in your property could destroy it. Appliances could become damaged, carpet destroyed and other things, such as fixtures could get broken. This may become quite expensive. Many landlords are in business to make an income, not throw it away on constant repairs.
- Your Existing Residents. You could potentially lose good tenants who have been renting from you for some time. Troublesome tenants could drive the good tenants away. It's your responsibility to maintain a safe environment for all your residents.
- No Payment. The tenant you chose for your rental property could move out without giving you notice and without paying you the currents month rent. Yes this could happen with any tenant, but the risk is potentially higher when you fail to do tenant screening.
- Save Money. If you do tenant screening, you could actually save yourself money. Imagine the tenant destroying much of your property and then leaving without paying for it, not only would you have to spend the money to fix everything, but you'd also spend money suing them in court. This could lead to hundreds if not thousands of dollars.
Now before you get your next property cleaned up and ready for the next potential tenant, remember to revisit these reasons above about why Tenant Screening is a must so you can save yourself time, energy and money!