IMPORTANCE OF TENANT SCREENING
Building a property to sell is one of the best investments anyone could spend their hard-earned money on. As this is a huge investment, one of the top priorities any property owner should consider, aside from earning the big bucks, is finding the best tenant or buyer for each property.
With this in mind, we must have the perfect formula to be able to do our tenant screening to find the best candidates. Like how we go through our job interviews, each property manager must go through a rigorous process before closing the deal and handing over the property to its new tenant or owner.
To help us decide, here are some of the main benefits to consider on the importance of tenant screening:
1. Protection for the owner
After investing in a massive deal such as real estate, as owners, we want to make sure we get the best out of our investment to ensure a return on investment. A proper tenant screening will help us better understand the tenant's financial background and source of income to ensure they will have no issues keeping up with their payment. If we have this information beforehand, it will guarantee a hassle-free transaction every month for the payment dues. It gives peace of mind to the owner that the tenant is up to date with the payment, which means they do not have to worry about eviction cases which also cost a lot.
2. Protection of the property
Aside from the protection for the landlords in terms of assurance of payment, a meticulous tenant screening assures the property managers that the tenants are capable of keeping up their payment dues and are trustworthy enough to ensure the property is kept in good condition. One of the usual problems for property managers is when a tenant gets evicted, they usually leave the property in a very poor state, which will cost a lot to repair and make it ready for the new occupants. A property with a low turnover rate provides a good reputation for the business, which can be an excellent factor for new buyers to consider your vacancies.
3. Protection for other tenants
One of the tenant screening processes should also have a criminal background check. This way, we can ensure the safety of the owner, the property, and the other tenants. The property managers or landlords must ensure the safety of all because any danger that would befall would be blamed back on the landlord due to a lack of criminal background checks.
All of these should be seriously considered every time we open our property to new tenants or buyers. Making sure we always include this and make it a priority to all the processes required will ensure a win-win situation for everyone.
Here at Caravel Real Estate Management, we ensure that safety and protection are one of our top priorities. We have our process in check that includes a tenant screening for each transaction to guarantee our success and the tenant's peace of mind.