Troublesome tenants are a property owner’s worst nightmare. A troublesome tenant can withhold rent, damage property, and can cause trouble with other tenants.
When accepting prospective tenants, many rental owners do not effectively screen perspective tenants. Unfortunately, this could prove to be a costly mistake.
Good or bad feelings about a tenant are not necessarily predictive of how they will behave. Therefore, for property owners looking to generate monthly income by renting their properties, developing a thorough tenant screening process is crucial.
No landlord wants their rental property to remain vacant for long periods. The longer a property is vacant, the more money the property owner loses. As a result, many landlords understandably cut corners when it comes to tenant screening.
All landlords need to understand that a low-quality tenant can cause several problems down the road. The total cost of handling a bad tenant (and addressing problems and damage caused by them) can exceed the costs of keeping a rental property vacant.
Here are some compelling reasons to screen prospective tenants.
Understand How Likely the Applicant will Pay on Time
Dealing with a tenant who is regularly late with rent can be frustrating. Chasing tenants for rent is no fun. Before accepting a new tenant, you need to carefully review their credit and rental history. Check with previous landlords to determine if the applicant has good credit and has not been evicted before.
Look for tenants with a history of on-time rental payments and a stable work history. Valley Management Group which provides property management in Campbell, CA, recommends asking applicants for an upfront credit application fee which is used for running credit checks on prospective tenants.
A credit check can reveal important information about an applicant. You will be able to see their open and closed accounts and their payment history. Check if there are any tenant-related collections on the report (a tenant-related collection can indicate that a collection agency was used to collect unpaid rent).
Identify Prospective Tenants with a Criminal Record
Your screening process should include a criminal background check. Review a prospective renter’s criminal history before making a decision.
You can’t refuse to rent to an individual simply because they have a criminal record. Instead, evaluate criminal convictions on a case-by-case basis and steer clear of tenants who are likely to pose a security threat to other tenants and neighbors.
Screening Rental Candidates Is a Great Way to Avoid Future Evictions
Evicting a tenant can be a lengthy and time-consuming process. The average cost of evicting a tenant is $2,500-$3,500. It can take several months to evict a tenant. Frequent evictions can make quite a dent in a landlord’s reputation.
When screening candidates, use a detailed eviction report that contains important information related to writs and warrants of eviction, tenant judgments for rent, and unlawful detainers to determine if the individual is a good fit.
Valley Management Group takes the guesswork out of property management. Their team consists of experienced property managers in San Jose that manage rental properties in San Jose, Campbell, Santa Clara and throughout Santa Clara County.There is no one-size-fits-all approach to property management. Valley Management Group can also tailor their services to fit the unique needs of rental owners.
