Rental property investment is a great way to build passive income, but it can also be a demanding investment. If the landlord title is a new one for you, the whole process can be a bit daunting. Property management services can help to ease some of that strain. If you've wondered whether or not the local property management service is worth the investment, here's a look at what they can do for you when it comes to securing new tenants.
Is Tenant Screening A Big Deal?
One of the biggest mistakes a new landlord can make is renting a property based on a "gut feeling" or their first impression of a person. You don't want to find yourself with public nuisance calls and damaged property calls after renting to someone just because they seemed nice enough at the time.
Background checks are a key part of tenant screening and can make a big difference for you when it comes to getting a reliable tenant. The background check will even uncover any existing criminal record, which some applicants may not be forthcoming about.
In addition, an applicant's credit history shows you their approach to debt management, which is an important consideration. If the applicant has a history of evictions, bankruptcy filings or collections notices, that's a serious concern.
How Do Property Managers Help?
Not only do property managers run thorough background checks on prospective tenants for you, they can also dedicate time to verifying application information for you. That way, you can be confident that whoever is in your rental has been vetted.
Before renting to a prospective tenant, many property managers will even make some follow-up phone calls. For example, while you might look at a tenant application and immediately call the person listed as the individual's supervisor, property management companies have the experience and understanding to go directly to the company's human resources department instead. It's too easy for an applicant to give you the contact information for their best friend to verify employment that they don't really have. By calling the company and asking for the personnel department instead, the property management company can confirm employment history, immediate supervisor information and any other job-related details on the application.
The same applies for previous landlords. Most property management companies have access to the state's landlord records for your area, which will help to validate the landlord information listed on the application. After all, if they left their last landlord three months behind on rent but moved out before the eviction was served, they aren't going to list that landlord on the application. With a background check and the landlord records for your area, a property management company can identify prior landlords and reach out to them.
Investing in the services of a local property management company is a great way to ensure that your rental property is filled with quality tenants. It also takes the stress off of you, because you don't have to wade through the applications, interviews and showings. For more information, contact Cambridge Companies or a similar company.