Hiring a quality property manager with an eye on your goals is the best way to make sure that your properties stay rented to people who will care for the property. Additionally, a skilled property manager can help you manage issues such as marketing, background and credit checks of potential tenants, and making sure you get long-term renters in place.
1) Steady Payments
Renters with a good payment history may not always have good credit. Financial challenges such as medical bills or student loan debt may mean that your prospective tenants are struggling to rebuild their credit. However, by checking out their payment history on previous rentals, your property manage can confirm if people are a good risk.
2) Avoiding Evictions
Evicting tenants is a tedious and time-consuming process that may make cause you guilt and stress. However, you are running a business, and whether the tenant pays or not, you probably have a mortgage to pay. Property managers can help you with the ins and outs of the eviction process.
3) Managing Vacancies
Vacancies are costly and should cost both you and the property manager. Make sure that your property manager is paid a percentage of the rents. They may want a portion of the first month’s rent as compensation for marketing, and this is fair. Do not settle on a contract that offers your property manager a minimum payment even if the property is vacant. Until rent is collected, nobody gets paid.
4) Collecting and Screening Applications
Most property managers charge an application fee for prospective tenants. This is a good business practice; if possible tenants aren’t willing to pay an application fee, they may be unwilling to part with the rent as well. This fee for application step can save you a lot of collection headaches.
5) Criminal Background Checks
An established property manager will have the ability to run background checks on all applicants. This should include criminal history, civil lawsuit checks and credit checks. Tenants with poor credit history may still make excellent renters, but those with several judgments or garnishments against their wages may not be a good bet
Your property management company should be a partner in the process of screening tenants for long-term commitments to your property. With the right property manager in place, you should be able to go about the business of building your rental portfolio, not chasing down payments or collecting applications.