1,906 of the 25,603 housing units in Santa Cruz were vacant in 2022. That's a high 8% vacancy rate, a number so high that the government considered levying taxes on empty homes.
These figures can make property owners desperate. They may abandon tenant screening and let in any applicants just to fill their vacancies.
There is a way to make sure you get quality tenants without having to do all the work yourself. Read on to learn the benefits of outsourcing your tenant screening process with the help of a property manager.
Knowing What to Look For
A quality tenant is not the one with the best personality. They're the ones that have the best results after a thorough background check.
A quality tenant has:
- No relevant criminal record
- No previous evictions
- Positive credit
- Stable employment and income
- Trustworthy references
- Reliable methods of communication
Tenant screening professionals know the red flags to look for and the legal and financial aspects of the process. They can also perform data-based tenant screening to get the right information faster.
Managing a rental property is a close relationship. It can make you want to do anything to protect your investment, which can cause you to miss the problems with potential tenants.
A property manager provides another set of eyes. They're not as invested in the property, allowing them to give unbiased and more accurate results.
Saving Time and Money
Screening tenants on your own is time-consuming. It can take hours to collect applications, complete a tenant background check, and verify the references. The process only becomes more complex if you have a large number of applicants or multiple properties.
Getting help from professionals makes the process more efficient and cheaper. You can put that extra time and lower total tenant screening cost towards building your investment.
High-risk tenants aren't only a problem for your bottom line. They may also damage your property or even present a risk to others on the property.
Outsourcing your tenant screening reduces your liability in these situations. It also helps ensure you meet all legal requirements during the process to avoid further legal problems.
Tenant screening is one of the best ways to avoid evictions. It alerts you to high-risk tenants before they cause a problem on your property.
Fewer evictions are a win-win for everyone. You get more rent, and your tenants have a place to live.
Property management companies help you get the best tenants and keep them happy. They make you seem more professional, and that positive reputation is essential.
Word of mouth is the most popular method of finding rentals at 27.7%. Tenants will tell their friends how quickly you respond to applications, encouraging them to apply as well.
How to Outsource Tenant Screening
Outsourcing your tenant screening to professionals keeps problem tenants out. It makes the process faster and less expensive. You won't have to deal with as many legal issues or evictions. You'll also develop a positive, professional reputation.
Tenant screening is only one service you can outsource. Contact PMI Santa Cruz to see what other parts of property management we can help you with today.