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A tenant is the second most important thing that you must have apart from buying an investment property. The sole source of income that you receive for your investment property business will come from tenants or the occasional property sale. The importance of a tenant can never be underestimated. You will have to search for a new tenant at some point during the time period that you own an investment property. You can do things yourself if you are near to a property although what if you live out of state. There are a few reasons why property managers are best for screening tenants to help you rent out your property for an extended lease period.
What Professional Tenant Screenings Reveal
Although it sounds simple, accuracy of information is what you are after with a tenant screening. Any person that completes an application for your property could give you false information. You could spend a lot of time and money trying to verify false information or let a professional property management company do it for you. A social security number is not foolproof and property managers know how to verify these numbers along with name, address, date of birth and driver's license information. Consent to obtain this information is usually granted with a professional lease application that property managers have already obtained from a law firm.
Income verification is very important when finding a new tenant. A person can write down any salary that he or she chooses. This does not mean a person can afford monthly rent. Property managers actually verify past and present employment and salary information using private access databases. A property management company could also have a database of past applicants to sort through when reviewing applications. A tenant that applied in the past could have provided false information to try and obtain a lease on your property. A property management company knows exactly how to prevent these scenarios from happening.
A landlord reference is another important aspect of reviewing a potential tenant application. Landlords are not shy about giving references to great tenants and spilling the beans about ones that were problematic. Property managers understand landlords and have a special rapport to use when speaking with these professionals. All information is obtained legally and within the laws of the landlord-tenant statutes of each state. Things like income verification, living habits and evictions can all be obtained or verified from landlord references.
The Cost of Property Management Services
Managing a property in your absence is a big responsibility. How much is it worth to you to have a professionally operated investment property? While property manager fees vary widely, there are many inexpensive companies providing excellent services. Before screening a tenant, you can screen a property management company to be certain that they fit your budget and the needs that you have as a property owner. You don't have to pay for services that you do not need. You only need to pay for the services that benefit you and contribute to growing your wealth.