How Professional Property Managers Select the Right Tenants

Highly experienced property managers are armed with effective and robust systems in dealing with the various levels of concern in a rental business. Like for example, before the tenants are accepted, it is a standard operating procedure (SOP) for certified property managers to do a proper background check first through screening. Before they let the applicant sign the lease agreement, they make sure the person is really qualified first by asking questions to extract important data with regards to the applicant’s renting capacity. And after all of these processes, the property management company will then orient the tenants and give them the terms. In this part of decision-making, the team’s smart judgment is so important.

To get the right information from the screening process, property managers ask for basic data such as the legal name, current address, date of birth, social security number, license number, basic employment record, contact person/reference in case of an emergency, income statement, and even credit records. Through this process, prospective tenants are effectively selected to avoid potential problematic occupants. This also allows the owner to choose tenants that are worthy of keeping for a long-term period, instead of irresponsible ones that could potentially adversely affect the income of the property.

Now it is important to note that creating a lease is not something you can just make up; you need legal and financial advice or insights from qualified persons. That’s why this is the best part about hiring a management company for your property; aside from doing all the tasks, the company also takes care of the legal compliance part of the business, including potential problems; they have specific training experiences for handling all the jobs. Therefore, you don’t have to find a consultant and deal with the consultant yourself.  That’s why having a manager for your rental property is really sure to help you prosper economically, allowing you to grow your investment and consistently, enabling you to expand your business.

Of course, the important benefit of tenant screening is neither limited to just earning profit nor only for the security of your occupants; it also helps you contribute to the community by helping to keep maintain peace and order in your area. Aside from this, having professional people taking care of your tenants is an advantage already, health-wise, especially for dealing with overwhelming issues related to the lease. The amount of cortisol that your brain may suffer from will be astonishing. Therefore by doing tenant screening, these issues can be managed using a systematic approach. It is what the team has been trained to do; they are trained, definitely, with a smart strategy to avoid payment problems and other hassles. These are definitely not good for the business.

Ways property managers verify tenant information:

Check for credit record

Check for criminal background

Check the employment record (if the person really has the capacity to pay consistently)

Check the last occupation record (inquire from the person’s current or previous landlord)

Additional requirements by scrupulous property managers:

Filling out more listing questions

Laying out expectations

Property profile (how many rooms, how many bathrooms, etc.)

Disclosures (total amounts for deposit, monthly rate, security amount, etc.)

Policies (no smoking, no pets, no drinking, no loud music, no late-night noises, etc.)

Then moving forward, property managers then ask the exact date the person wants to move in. If the person wants it urgent, property managers would ask if there is any particular reason why the person wants to move quickly. Then, they may also ask how long does the person wants to stay. Are there more people planning to live with him or her? Most importantly, if you don’t like pets, ask if the person if he/she plans to bring a pet in. Also, we all know that cigarettes create unpleasant odors, so it may possibly cause negative reactions from other occupants that’s why you should also ask if the person smokes cigarettes. Cigarettes are not only irritant to the nose of non-smokers, but it is also very unhealthy and most importantly, dangerous for the property. Therefore it is important to inform them that you don’t allow cigarettes on your property.

So those are just a few of the basic things to consider always if you have a rental business. For you to truly maximize your profit and have more chances of expanding the growth of your investment, do not hesitate to hire professional managers for your property. To start guiding you now, contact Jaxon Texas.