Ultimately investors of single-family rentals need to create a safe environment, just as property managers and landlords do with apartment complexes.
Waltham, MA (PRWEB) March 19, 2015
During the Great Recession foreclosures increased dramatically and created a buyer market for corporate investors. Purchasing homes on a large scale with the intent to rent creates a broader market for potential renters. And the scale in which these homes were purchased is significant.
Bloomberg.com reports an investor purchase of noteworthy size.
From Bloomberg.com (Feb. 18, 15): Silver Bay Realty Trust Corp. agreed to buy about 2,460 single-family rental homes in one of the nascent industry’s largest bulk purchases. (1)
Large rental properties generally conduct a thorough vetting process in order to protect the investment of the property, the property itself, and existing tenants. Investors with large portfolios of single-family rentals should conduct the same scope of vetting with all applicants.
Adam Almeida, President and CEO of TenantScreeningUSA.com states: "Tenant screening is critical regardless of size of rental properties. One of the key reasons for a tenant check is to mitigate risk and create a safe environment for neighbors, renters, and investors."
Tenant screening utilizes a variety of public documents and data points to create a package of information that will assist property managers and landlords a snapshot of a potential renter's past. Key reports commonly include:
1. Credit History - to ensure fiscal responsibility
2. Criminal History - to help mitigate potential risk based on conviction
3. Evictions - to show responsibility to property (2)
Almeida states: "Investors of single-family rental properties want to create a positive perception in the communities they own property. Tenant screening greatly assists toward accomplishing that goal."
More importantly potential renters of investor or corporate owned single-family properties may be hesitant do to the perception of foreclosure purchases during the Great Recession.
From AmericanProgress.org (Dec. 18, 14): "...the Center for American Progress recommends that companies in the emerging, investor-owned, single-family rental industry go the extra mile to demonstrate that they are committed to managing homes responsibly, treating tenants well, and contributing to the economic and social well-being of the neighborhoods where they own homes." (3)
That extra mile includes mitigating risk through tenant screening, especially in neighborhoods that have a high number of investor owner single-family rentals.
Almeida states: "Ultimately investors of single-family rentals need to create a safe environment, just as property managers and landlords do with apartment complexes. Tenant checks are the key component to mitigate risk regardless of property size or type."
TenantScreeningUSA.com is a third-party tenant screening company that can provide screening packages for investors with property holdings large and small. Whether a property is a single-family rental or a multi-unit rental community, TenantScreeningUSA.com can provide the information needed to make an informed decision.