Did you know that around 36% of the population in America rents their homes?
If you're on the lookout for a lucrative investment opportunity, then buying a rental property is always a wise move. Not only will the property itself appreciate over time, but you can also collect rent each month for a steady stream of income.
To run the most successful business possible, you'll need to learn how to screen tenants thoroughly. Read on to learn the top reasons why you should never underestimate the value of tenant background checks.
Criminal Background Checks Keep Your Community Safe
Some people are surprised to learn that over 77 million Americans have a criminal record. Since this figure is quite high, running a background check is the key to keeping your community safe.
Not only will turning people with a dangerous background away keep your tenants happy, but it could also help you avoid legal trouble. For example, some criminals aren't allowed to live near schools.
Tenant Background Checks Verify Financial Security
When you look into someone's credit score and ask for proof of income, you can verify that they'll be able to keep up with rent.
A high credit score is evidence that an applicant is responsible with their money. Having this information will give you peace of mind that your risks are low when it comes to keeping your business profitable.
Tenant Screening Reveals Troubling Rental Histories
One step that you shouldn't skip is investigating each applicant's rental history. If they move around a lot or have evictions on their record, then you may want to pass on their application.
Your goal is to find residents who will stick around for a long time and avoid giving you any trouble during their stay.
Finding a Tenant Who's Interested Will Be Easier
The tenant screening process costs money and most landlords choose to place these expenses on the applicants. When applicants are responsible for footing the bill, they're pickier when it comes to the rental properties they apply for.
This means that you'll only be left with a pool of applicants who are sincere in their interests.
Tenant Background Checks Will Save You Money
Jumping through all of these hoops to find your tenants may seem tedious, but it helps you in the long run. All of these factors combined will allow you to form professional relationships with people who will always pay their rent and take care of your investment.
You won't need to spend extra money on repairs, legal trouble, marketing, and other fees.
Background Checks Are Essential for Investment Properties
Now you understand the importance of thorough tenant background checks. You'll never regret investing in these resources once you see the high-quality results.
Do you want to make managing your rental property in the Gresham, OR or Portland, OR areas easier? Contact us to learn all about our incredible property management services.