Real Estate

Tenant Screening Myths that Everyone must Know About

Have you been thinking of starting your hands in the rental property business? If yes, then there are a few things that you must know before starting it. It is a tough job and you need to be alert all the time. it requires a lot of finesse and patience to pull this off. Things can be unpredictable at times and that is what makes the job of a property owner so difficult. From maintaining the property to selecting the right tenant, it is a kind of around-the-clock job. You never know when things will turn bad.

Especially when you get a bad tenant to start with, things can definitely go awry at times. At such times you cannot leave it all to luck. Renting the property to a complete stranger doesn’t have to be such a scary affair. To avoid giving away your property to the wrong person you need to do thorough research on the topic. For this, property management companies run tenant screening on the prospects. You simply can’t let things run on luck.

Many property owners try and hire the best property management companies for the purpose of conducting tenant screening on the applicants. Renting the property need to be done in the best possible way so that, there is no scope for mistake. And it must be done on top priority. This will allow you to take out the ones with a bad background that can cost you a great deal in the form of eviction fees, property damage, back rent, etc.

You need someone who will pay the rent on time, establish proper communication with you, follows the rental agreement, and above all, treat your property with respect. You will say that finding such a tenant would not be a piece of cake. But you can make it one if you know how to do it properly. The only way to find such a tenant is by doing the tenant screening the tenant. After posting the ads listing at different sites, you will start getting a good number of applications. Selecting any tenant randomly is not the solution, you need to take time going through each of them.

Listening to them, you may have a lot of confusion as to how to conduct it. Experienced landlords do it themselves but if you are new or have too many properties to take care of, then it is best to hire a professional property management company. They will handle things well. Still, got confusion? Then here are a few myths related to it, understanding them can help you a long way.

Myths Related to Tenant Screening

Myth 1: Landlords Following their Gut

This is the fact that most of us plan to go with our luck and others go with gut intuition. But these things are not as easy as they seem. Going with luck can cause a lot of issues later. It may lead you to make wrong decisions and so a survey revealed that 86% of the landlords would try and get the information of the prospects in a detailed way.

Even then many property owners complain of getting scammed every year by those who fall prey to their gut intuition or decide to go with their luck. A person can be judged on their face value but running a background check only strengthens your belief and avoids all kinds of last-minute issues. Once you do that, you are sure to get the deed done and put your heart to rest. Sometimes you may feel cheated if you just pay more focus on the face value.

Tenant screening is getting above the gut intuition. It will save a lot of trouble, frustration, and money. As you screen the tenants you can get the following points cleared:

  • Income
  • Criminal record
  • Eviction history
  • Financial history

Myth 2: An Ideal Tenant Means High Credit Score

One always looks at the bank balance of the tenant but is that all enough. You need to see a lot of aspects of an applicant before you finalize them. The renter is ideal only when he has a stable job and is financially competent. This is the common myth that landlords are expected to get over it. An ideal tenant is a mixture of responsibility, respect, punctuality, and honesty. He should also know how to establish great communication with the landlord and shouldn’t disturb at way hours with slight issues.

So, a prospect with a high score is a good thing but they may or may not be a good tenant. It won’t ensure that you won’t have severe problems at hand. A survey states that around 59% of landlords pay more attention to the credit history rather than other aspects.

A bad score won’t mean that the renter would delay paying the rent on time. Tenant screening not only emphasizes the credit history but also checks other things for you such as:

  • Mortgages
  • Payment timelines
  • Open trade lines
  • Loans, etc.

Read: 5 year payment plan residential plots

Myth 3: Any Renter will do

Just because your property is empty for a long time, doesn’t mean you have to fill with any of them. Yes, one must worry about the limited applications. They must look forward to increasing the reach and getting more prospects that will increase the probability of getting a good tenant.

Many property owners become desperate and end up selecting one randomly for their property. But later, they start repenting of their decision and start feeling that it was better to leave it empty rather than somehow filling it up with bad tenants. If you have bad tenants, you may have to get into sending an eviction notice to the tenant. This may be quite expensive for you as it includes expenses such as:

  • Filing fees
  • Hold costs in utilities
  • Court fees
  • Disturbed rental income
  • Turnover costs such as damage repairs and listing costs

When you add all these costs together, you will prefer to leave the property alone. Instead, you can take out time to ensure that you hire the right property management company in Maryland to set things right for you.

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