You might think yourself a good judge of character. But as any landlord will tell you, people who come across as charming aren't always what they've cracked up to be.
Occasionally, even when you think you've asked the right questions, you end up with a bad tenant that causes you endless trouble and hassle.
The alternative is to outsource the tenant screening task to a third party. But is this a good idea? Or is it best to do the job yourself?
You'll find the answers here. Read on to learn whether it's wise to outsource your tenant screening.
Speeding Up the Tenant Selection Process
Tenant screening takes time. If you lack time or need things to happen fast, outsourcing your screening process might be the best option. It's more efficient.
Specialist agencies already have the systems to hit the ground running from day one.
For example, they'll know how to run the relevant background checks, and they may have software to capture and screen tenants. They'll also have experienced personnel who have the time to check tenant references.
Speedy screening processes could also be financially beneficial. It means shorter vacancy periods for your property when you aren't getting rental income.
The Advantage of Experts
Professional screening services give you access to experts. If you haven't performed tenant screening before, there is much to learn about getting it right.
A professional already knows the challenges and pitfalls of screening. They are also adept at spotting red flags in a tenant's application.
That knowledge is invaluable because it could save you from selecting a poor tenant who causes you problems and expenses in the long term.
They also have extensive knowledge of the legal regulations surrounding tenant screenings. So, they can help reduce the risk of legal problems like potential claims for discrimination from tenant applicants.
Outsourcing: A More Cost-Effective Solution?
You may wonder whether outsourcing is right because it is an extra business expense. However, you must think about the long-term cost-effectiveness of outsourcing vs. DIY.
If you lack experience in screening, you could make mistakes.
Failing to check a tenant's background could leave you with someone who doesn't pay the rent. So, in the long run, that is a costly error and one you can avoid by using outsourced services.
The Role of Technology in Tenant Screening
A modern tenant background check is a far cry from a few decades ago. Then, much happened on paper and over the phone.
Nowadays, software plays a vital role. If you lack access to those tools, it makes more sense to outsource the task instead.
For example, a tenant credit check will happen digitally, and you'll need to access the databases of the relevant credit agencies. The same is true for identity verification and background checks.
Modern software can also use advanced screening technology to scan for red flags like inconsistencies in an application. That will help reduce the risk of human error.
Outsourcing Your Tenant Screening
Don't go it alone when it comes to finding a good tenant. Outsourcing your tenant screening will give you the dependability of professionals who can spot a good (or bad) tenant.
Take the next step now by chatting with our team at Flagship Inc. about how our tenant screening services can help you.
