Although it’s a considerably promising business, renting out property has its fair of risks – top of which includes renting out property to troublesome tenants. Fortunately, you can effectively mitigate such a risk by relying on third party tenant screening services which seek out additional information to audit respective applicants before they occupy your premises.
Tenant screening services are largely more advanced than regular applications, which only avail applicants’ names, telephone numbers and emails. Service providers comprehensively assess individual applicants according to their behavioral tendencies and past relationships with their landlords and property owners. By relying of several information channels, they are able to weed out potential niggling tenants faster and more accurately than landlords.
Without a complete screening process, landlords are bound to commit several errors, especially when they trust their instincts in judging respective tenants’ characters. In fact, a significant number of landlords have been turning away serious, potentially good clients for disreputable ones by relying on their instincts for judgment. It’s very inadvisable to try judging one’s character just by observing them, especially since some people may appear as gifted smooth talkers with good first impressions- but ultimately turn out to be nightmares to their landlords.
Other landlords are blinded by their prospective tenant’s initial gracious gestures. Some tenants, for instance, try to please their landlords by paying full deposits along with a couple of months’ rent. Their landlords consequently presume such tenants’ financial abilities without carrying out requisite background checks. Tenant screening services eliminate the chance of such errors by conducting relevant checks regardless of an individual’s willingness to kick-start the contract with generous payments. In some cases, people with significantly lesser first offers are granted priority over seemingly generous first payers with high chances of causing future headaches.
Another mistake that’s synonymous with landlords is relying entirely on credit reports. Credit reports are only relevant to banks and financial institutions- not to landlords since they don’t indicate one’s rent payment history. A habitual rent defaulter may have an almost perfect credit score, subsequently compelling a property manager to consider him as a prospective tenant. With such information in mind, tenant screening service providers tend to ignore credit scorse and alternatively research extensively on rent payment history. By studying one’s rent payment patterns, you’ll be able to adequately determine if he’s indeed a tenant worth granting a tenancy contract or not. Such critical information can only be obtained through tenant screening agencies, consequently saving you potential headaches caused by rent defaulters and criminals.