Imagine you have invested millions of dollars buying a new property in Thousand Oaks and rented it out to generate steady income flow every month. Unfortunately, you end up filing a lawsuit against the tenants or having depreciated the value of your property significantly.
Wondering where did you go wrong? It is in your tenancy selection process.
On average, 80% of property owner grievances arise from poor tenancy. Therefore, it is crucial to hire a professional property management company who plays an integral role in efficient tenant screening.
Here’s a complete checklist of what a good property manager’s tenant screening process involves.
Table of Contents
Criminal Report and Background Checks are a Must
Nothing can be worse than having tenants with criminal record or a poor background. It may not only compromise the safety of your property and the neighborhood, but can also get you involved in legal proceedings.
Therefore, a good property manager will thoroughly check with the magistrate, district, and local courts to ensure the potential tenants do not have a criminal report. They will also leverage their broad network to conduct a background check before letting the property.
Validate the Tenant’s Income and Credit Report
Before renting out your property, it is important to know whether the tenant will be able to pay the rent regularly and timely. Checking the tenant’s income and credit report will help validate their financial status and also identify financial distress or poor credit history.
In addition to their income statement, a property manager will also evaluate their credit to debt ratio, past credit reports, and if required, also call the employer. This part of tenancy screening will give you peace of mind when it comes to rent collection and property management in Thousand Oaks, CA.
Do Not Forget Checking the Rental History
Before renting out your property, it is crucial to check the tenant’s rental history to validate it is accurate as per the application given.
A rental history is one which exhibits the tenant’s credibility and integrity. It will also give you an idea of how the tenant’s behavior had been with his current or previous landlords. Your property manager will contact all landlords listed in the rental history to understand the reputation and reliability of the potential tenant.
Verify the Tenant’s Personal Details
This is an important step of the tenant selection process. Your property manager will check every personal detail in the tenant application, including the name, present/permanent address, and mobile number. The documents submitted as identity/address proof must be verified by the state or federal authority. This will help establish trustworthiness of the tenant and ensure you peace of mind.
Conclusion
The tenant selection process holds utmost importance in determining the success or misfiring of your property investment. As a layman, you may lack experience screening your potential tenants in the right way. The result – you end up having bad tenants to deal with.
An expert property management company follows an effective screening process and harnesses their experience to find and select the right tenant for your property.