In tribune to David Letterman, we will do top 5 reasons to do tenant screening. It is not as funny, but equally useful.
1. Reputation. It is critical to keep most units filled. In the end, a unit that stands idle is the income lost. Therefore, the last thing you want to happen is a high turnover in your properties. If you do not do tenant screening, you will allow disruptive tenants move it. Your reputation is on the line when it comes to having good tenants with acceptable background checks in your properties.
2. Property. Having bad tenants in your property could destroy it. Too often we hear horror stories about appliances getting damaged and fixtures getting broken. This may become quite expensive over time. Real estate rental business is never a high margin business, and you make money by collecting rent more than the debt you own. Constant repairs can easily eat away margin and potentially cause losses.
3. Existing Residents. You could potentially lose good tenants who have been renting from you. Trouble makers could drive the good tenants away. Ultimately, if you carefully screen tenants, you might kick off a self-selection process that attract more good tenants. In contrast, if you are not careful in tenant screening, good tenants will be driven away, and you might attract more bad tenants. The circle cannot be stopped once it is in full motion.
4. No Payment. The tenant you chose for your rental property could move out without giving you notice and without paying you the currents month rent. This could happen with any tenant, but the risk is potentially higher when you fail to do tenant screening.
5. Save Money. Tenant screening cost money, but it is a great long-term investment. Plus, it is typically the tenant who covers the cost of tenant screening. All landlord needs to put in is the due diligence and say no when things do not look right. Imagine the tenant destroying much of your property and then leaving without paying for it, not only would you have to spend the money to fix everything, but you’d also spend money suing them in court.
How Tenantify can help?
Tenantify empowers landlords to make informed decisions by verifying tenant’s employment and income. Tenantify is different from a traditional tenant screening service, as we focus on tenant’s current financial situation and assess tenant’s ability to make monthly rent payment. It should not replace the traditional credit check, but we believe that employment / income verification is superior because it reveals tenant’s current (rather than past) ability to pay.