Even before the pandemic struck, there was an underbuilding gap that helped drive the current housing shortage. Supply chain problems from the pandemic made the problem even worse as housing demand increased. In short, the inventory can't meet the demand.
That helps explain why the median home prices in the US currently hover around $375,000. Of course, that's good news for rental property owners. With home purchase costs so high, many people are simply priced out of the market.
Even with a strong rental market, though, you need good tenant screening. Keep reading to understand the importance of a tenant screening process.
Prompt Payment
No landlord or property management company enjoys tracking down late paying tenants or hounding them for the rent. It's stressful for you and for the tenant.
Screening new tenants for their finances, such as employment and credit history, helps you avoid tenants who likely won't pay their rent.
Avoid Evictions
As awful as chasing down tenants for rent can be, evicting tenants is an even worse outcome. It frequently means a time-consuming legal process with hefty expenses. While it's often a financial issue, criminal activity can also force your hand.
A background check in your screening will alert you to prior criminal activity. While not necessarily a reason for selecting other applicants, the kinds of criminal activity can suggest whether or not they'll start up similar activities on your property.
Protect Your Property
Good tenant screening services or processes will include reference calls to prior landlords. These calls can help reveal in what kind of condition a tenant will leave a rental unit.
While a security deposit will help cover costs, you don't need or want a lengthy repair process slowing down getting a new tenant into the unit.
Minimize Turnover
You expect some turnover in the rental industry. Tenants move away, buy homes, or even upgrade to a better unit that you offer. That doesn't mean you want it happening all the time.
The screening process helps you see whether tenants stay in a unit for a while or go to a new apartment every year. To learn the 6 things landlords should look for in a tenant screening service, click here.
Peace of Mind
A good tenant screening process also gets you a major intangible benefit: peace of mind. You go into the rental agreement, trusting that you made a good choice based on the available information. While no screening process proves 100 percent accurate, it can help you sleep better at night.
Read on for 4 justifications why you should conduct a tenant criminal background check. https://www.carolinaspropertymanagement.com/blog/4-reasons-to-run-a-tenant-criminal-background-check
Tenant Screening and You
Tenant screening is one of the crucial processes that any good landlord or property management company needs in place. It helps you pick the best potential tenants from the applications.
Picking the best applicants helps you avoid problems with late rent payments, evictions, property damage, and high turnover. You also get the benefit of enhanced peace of mind.
Have you had trouble with the tenants in your Charlotte rental property in the past?
Carolina Property Management offers tenant screening services in the Charlotte, NC area. For questions or more information, contact Carolina Property Management today.
