Did you know that approximately half of all property owners use property management services?
Landlording is a lot of work. You have to worry about maintenance, bookkeeping, and tenant screening.
Tenant screening requires a lot of research and time spent on potential renters. You have to do a credit report and background check.
Confirming renters' employment history is vital because you want to ensure they can pay you. You've also got to ensure you follow fair housing protocol while performing the screening.
For example, you can't deny housing because the tenant worked as a priest. But screening can be time-consuming. There is a reason many property owners don't do it themselves.
So is outsourcing your tenant screening a good idea? Read on to learn the merits of outsourcing your screening process.
Outsourced Screening May Be More Comprehensive
You can do in-house tenant screening on your own. However, you risk cutting corners to achieve quick tenant retention. You may not do this purposefully, but you may focus more on your would-be renters' financials.
This makes sense; you want to find a tenant that can stay long-term and won't default on payments. There's a drawback to a heavy focus on financials, though.
What good is a paying tenant who's disruptive and damages property? It's fair that you want renters who pay on time.
But they should also be good tenants. A professional property management service will check if they're a good fit. Here are some of what you can expect in the screening report:
- Credit history
- Eviction history
- Employment history
- Criminal history
Outsourcing Saves You Time
A tenant screening can take from a few days to a couple of weeks. That's if a professional property management firm does it.
If you're performing it, you can expect the job to take much longer. Especially if you want a comprehensive report.
However, not only do you have other tasks, but you need renters for revenue. Your vacancy rate increases because you're worried about whether you'll find good renters.
Professional tenant screeners can quickly find information and compile it for you to see. You can reduce the time between vacancies.
There's a Lower Risk of Discrimination
Each time you refuse a rental application, you increase your chances of a discrimination claim or lawsuit. You're entitled to a little pickiness when choosing tenants. But there are anti-discrimination laws you must follow.
You could accidentally ask a discriminatory question. You may not mean harm. However, you could face lawsuits if questions involve tenants' age, color, race, religion, or other protected criteria.
A third-party property management company can better navigate the Fair Housing Act and avoid discriminatory actions. If something does go wrong, it's the management company's fault and they're sued instead.
Let Us Handle Your Tenant Screening
Landlording isn't easy and you have plenty of other things to do. Let Axela help. We offer property management services like tenant screening, rental collection, and accounting throughout the Northeast.
Axela can help you streamline commercial property management. Contact us when you're ready to start; we offer free consultations.
