A first-time landlord really needs to understand the capability of a prospective tenant in fulfilling their renter responsibilities. It is more than financial capability. Lack of a proper interview and tenant check could lead to bad tenants."
Waltham, MA (PRWEB) February 27, 2013
As the economy of the United States continues to gain strength opportunities still exist for the purchase of low-cost single family dwellings and apartments to be utilized as income and rental properties. Many believe this to be a simple source of income, one that can become long term and profitable sources of income, but there are significant challenges to owning and managing a rental property.
From a recent article posted to the Fox Business website (Feb. 4, 2013):
Owning investment properties is hard, time-consuming work, and it can be very stressful and disastrous to your finances if you are not prudent in your endeavors. http://www.foxbusiness.com/personal-finance/2013/02/04/are-ready-to-be-landlord/
Adam Almeida, President and SEO of TenantScreeningUSA.com recently responded to a question about becoming a landlord: "It's not easy. But if you can find the right tenant it can be profitable. And finding the right tenant might be the ultimate challenge. The more thorough the tenant screening the better success you will achieve."
While the article highlights many obstacles a property owner might discover in the process of becoming a landlord, it does not explicitly spell out the need for tenant screening as part of a complete and thorough vetting process.
Almeida adds, "A first-time landlord really needs to understand the capability of a prospective tenant in fulfilling their renter responsibilities. It is more than financial capability. Lack of a proper interview and tenant check could lead to bad tenants."
Beyond being able to pay the monthly lease or rent property managers and landlords seek strong tenants that will treat the property, community, and neighbors with respect. Good tenants create strong communities which can lead to long-term and profitable rental arrangements. One bad tenant can destroy property both within the dwelling and in the surrounding area, and scare off other long-term tenants.
In an article posted on the St. Tammany News website (Jan. 16, 2013) landlords in British Columbia, Canada are facing a risk that takes "bad tenant" to another level.
Landlords are calling for tougher enforcement after being taken for thousands of dollars by “professional” scam-artist tenants who never pay rent and work the system to delay eviction. http://www.cbc.ca/news/canada/british-columbia/story/2013/01/18/bc-badtenant.html
The cost of evicting a tenant can be significant.
...she is out $20,000 in lost rent, legal fees and clean-up costs after renting to a tenant who has moved from home to home in Victoria without paying, for months on end. http://www.cbc.ca/news/canada/british-columbia/story/2013/01/18/bc-badtenant.html
Utilizing Tenant Screening as part of a thorough vetting process can greatly assist in the selection of a good tenant.
Tenant Checks typically include:
- Consumer Report
- Criminal Histories
And may include:
- Sex Offender Registry
- Bankruptcies, Liens, and Judgments
- Nationwide Criminal History
- Social Security Number Trace
Owning an investment property can be a fruitful venture, one that can provide long-term financial gain. Avoiding a potential bad tenant through a thorough vetting process, one that includes complete tenant screening and a face-to-face interview, is the first step to a long relationship.
TenantScreeningUSA.com is a third-party tenant screening provider that works with property managers and landlords in creating unique and thorough tenant screening packages. Contact TenantScreeningUSA.com today to discover a variety of unique programs designed specifically for the small-property and first-time landlord.