A recent survey found that 93% of rental housing providers saw an increase in fraud in the last year. That included fake income or identity documentation, unauthorized cohabitants, and fraudulent checks or payment methods.
This increase in fraud makes proper tenant screening more important than ever. You may want to keep such an important process close to home, but there are benefits to allowing a professional to handle it instead.
Read on to learn whether or not outsourcing your tenant screening to a property manager is a smart move.
Fewer Vacancies
The primary reason for tenant screening is to fill vacancies. An empty apartment is like a money pit for a landlord. Screening is like placing a net over it to let only the best applicants fall through.
Outsourcing the process gets your vacancies filled faster. You'll have professionals who know how to do it efficiently and get you earning rent on your property again as soon as possible.
Saving Time and Money
A tenant background check, depending on the type and circumstances, can take days or months to complete. That's time you could be spending on other areas of your investment.
Outsourcing the process allows it to be finished faster. You also won't waste time fixing errors or removing problem tenants.
While you will have to spend money, the investment will pay off because you'll reduce your overall tenant screening costs.
You won't have to purchase the tools to complete the checks yourself or find out how to use them. The professionals will complete the checks faster and get you batch discounts.
Comprehensiveness
Outsourcing means you get the most thorough tenant background check possible. That includes looking into their:
- Credit history
- Employment history
- Rental history
- Eviction history
- Criminal background
- Tenant references
This helps you spot any issues without having to do all the work of finding and clarifying the information. It reduces errors that could cause you to accept a problematic tenant or face legal issues.
Legal Protection
You can reject tenants based on the results of a background check such as a poor criminal or credit check. North Carolina Fair Housing Law says you can't reject them because of protected categories such as:
- Race
- Gender
- Religion
- Nationality
- Age
- Marital status
- Income
There are also laws about how to handle a tenant's information. This is especially important for the personal data found in their credit report. Those regulations are all found in the Fair Credit Reporting Act.
Outsourcing your tenant screening hands it over to legal professionals. They understand all the regulations related to screening. That protects you from any liability or penalties for stepping outside the lines.
Where Should I Outsource My Tenant Screening?
Outsourcing your tenant screening process is a wise choice. It reduces your vacancies, provides more comprehensive results, saves time and money, and offers more legal protection.
Flagship Property Management has been expanding since 2008. We're now a full-service property management company with a team of dedicated agents and brokers. Contact us to start growing your investment today.
