Everyone complains about their landlord until they become one. As an investor in properties, you can buy as many homes as you can afford. You can then rent out these properties for a great source of passive income.
However, performing a tenant background check for every applicant when you own dozens of properties will prove very problematic. There simply isn't enough time in the day, and you may struggle to do a good job.
One option to consider is outsourcing your tenant screening, but there are some pros and cons that come with this approach.
Why a Tenant Background Check Matters
Screening a rental applicant is important for avoiding problems with the law and making sure they can pay rent at the end of every month.
A tenant credit check is a good way to assess their financial stability. If their credit is good and they have long-standing employment, then you can trust that they'll have rent every month. A bad credit history says otherwise.
You'll also want to get some tenant references such as their previous landlord. They should be able to tell you what kind of tenant this person was and what to expect from them.
Benefits of Outsourcing Your Tenant Screening
There are a variety of benefits to outsourcing your screening to a property management company.
To begin with, you won't waste your time vetting someone who can't even afford the security deposit. You never know what a potential tenant is lying about until you do the screening.
Next, your property manager can make the necessary calls to the tenant references. This may involve speaking individually to people like their previous landlord, their current employer, or even their parole officer. You can't automate those conversations with an online search engine.
Finally, you save time overall. Depending on how many properties you currently own, you may have a lot of applicants to go through. A property management company helps you navigate that task without running yourself ragged.
Considerations When Outsourcing
The only drawback to outsourcing your tenant screening process is that you lose the personal touch of doing it yourself. You may make exceptions that the property manager won't. Or you may catch things that they miss.
As such, it's important to find the right property manager to look over your investments.
Get referrals on a prospective property management company and run background checks, just like you would with a tenant. Find out how they handle advertising and vacancies. Try to hire a company that has similar values to your own and won't charge exorbitant tenant screening costs.
Get Help With Your Tenant Screening
The tenant screening process is a laborious but necessary endeavor. You need to know what kind of person is going to spend their days inside of your property. Luckily, your property management company can help lighten that load.
PMI North Atlanta provides both residential and association services across the North Atlanta area. We're here to help, whether you're a homeowner or an HOA board member. Contact us to learn more and schedule a consultation.
