Managing rental properties comes with challenges, and one of the most critical tasks for landlords is finding reliable tenants. According to Financial Samurai, the worst times to find tenants are in October, November, and December.
Tenant screening is vital in ensuring your property is occupied by individuals who pay rent on time, take care of it, and follow lease terms.
However, the process can be time-consuming, complex, and stressful for landlords.
This is where outsourcing tenant screening comes into play. Is it the right choice for you? Let's explore the pros and cons to help you decide.
The Benefits of Outsourcing Tenant Screening
There are many reasons why you should consider outsourcing the tenant background check process for your rental property business in Sarasota. Here they are.
Saves Time and Reduces Stress
Tenant screening requires collecting a rental application, running a background check, verifying income, and contacting references. This process can become overwhelming for landlords managing multiple properties or those with busy schedules. By outsourcing, you save valuable time while professionals handle the labor-intensive screening process on your behalf.
Access to Advanced Tools and Resources
Professional tenant screening companies often use specialized tools and databases that landlords may not have access to. These include:
- Credit and rental history verification
- Criminal history checks
- Eviction records
Their comprehensive reports can provide deeper insights into an applicant's background, ensuring a more informed decision.
Ensures Compliance with Laws
Screening tenants involves adhering to fair housing laws, including the Fair Credit Reporting Act (FCRA) and anti-discrimination regulations. Missteps, whether intentional or not, can result in legal issues or fines.
Professional screening companies know these laws and follow proper procedures, minimizing legal risk.
Improves Tenant Quality
Through thorough vetting, professional screeners can identify red flags such as inconsistent income, poor credit history, or prior evictions. This reduces the likelihood of renting to unreliable tenants who could lead to late payments, property damage, or even eviction proceedings. Higher-quality tenants save landlords money and headaches in the long run.
The Drawbacks of Outsourcing Tenant Screening
Nothing is perfect and that applies to outsourced tenant screening as well. Here are some cons to consider.
Costs Can Add Up
Outsourcing your tenant screening process comes with a fee, which can range from $25 to $75 per applicant, depending on the service provider. While these costs can be passed on to applicants as part of the application fee, some landlords prefer to handle screenings internally to save money.
Less Personal Involvement
Some landlords prefer a hands-on approach when choosing tenants, as it allows them to personally assess an applicant's character and compatibility with their property. By outsourcing, landlords may feel disconnected from this decision-making process.
Tenant Screening Is Crucial To A Profitable Property Rental Business
Outsourcing tenant screening will pay back several times over as you will have better quality tenants in your properties and you won't have to worry about churn or empty properties.
At Paradise Palms Property Management in Sarasota, FL, we take care of it all for you from tenant screening to marketing and rent collection so we can maximize your profits. We often have a waiting list of potential renters.
Schedule a call with our team to learn more.
