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Should Cathedral City Rental Property Owners Outsource Their Tenant Screening?

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Should you handle tenant screening on your own, or is it worth hiring an outside company for this process? Tenant background checks can be expensive and take up a lot of time, but conducting them on your own can be more costly than you think. 

Many property owners that use an online background check service or their own resources often miss red flags that indicate “professional” renters or bad tenants. If you’re struggling to find or develop a reliable tenant screening process, the best property management company Cathedral City delivers insights about maintaining your own process vs. outsourcing!

What Does it Take to Screen Tenants Effectively?

Property owners need the right information about a potential renter to conduct a thorough tenant screening. For example, a property owner must confirm that an applicant has enough income to cover the monthly rent amount, doesn’t have a dangerous criminal record, and if they’ve had eviction issues.

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Landlords should also contact references from previous landlords or employers and review an up-to-date credit report before approving someone as a renter. A property manager recommends answering the following questions to evaluate a prospective tenant and choose the best renters for a property. 

Can They Cover the Monthly Rent Amount?

It’s essential to verify a potential renter’s income as part of the tenant screening process to help ensure the tenant can afford the rent. While it’s important not to discriminate based on how much an applicant makes or the type of work they do, it’s crucial to confirm that an applicant generates enough income to pay the rent on time throughout the lease. This can help reduce the chances of late or missed payments from a renter. 

Do They Have Manageable Debt?

The debt to income ratio (DTI) is the proportion of a renter’s debt payments compared to their income. It’s a valuable measure for assessing how much they can afford in rent. Reviewing a credit report and considering DTI is critical for a property owner to evaluate a potential renter’s ability to prioritize rental payments vs. paying down other debt. 

Do They Have a Criminal History?

Should you rent to someone with a criminal past? It is important to note that not everything that shows up on a criminal background check is a red flag, but some issues could be a problem when considering your next renter. For example, if a renter has a dark past with assault or drug charges, that might be a warning sign of potentially dangerous problems for you, the property, and neighbors. While it’s against the law to have a blanket policy of denying anyone with any criminal background, a property manager can help you evaluate an applicant appropriately. 

Are There Any Issues With Their Rental History?

Rental history reports include information about an individual’s rental history, including evictions and defaults. If you see issues that indicate a problem paying the rent on time or the potential for default, consult a property manager for guidance about denying a tenant based on these concerns. 

What Are the Benefits of Outsourcing the Tenant Screening Process?

Outsourcing tenant screening can save time, money, and potential risks for rental property owners. If you’re wondering, “what does a property manager do,” tenant screening is one of their services! 

A professional property management company handles every aspect of the screening process, including:

  • Reducing costs. Background checks can become costly for property owners conducting them one at a time. However, a property management company regularly performs screenings and passes savings along to property owners as part of their property management services. 
  • Informing decisions. A property management company can help you interpret a tenant screening report and analyze an applicant’s to make smart decisions about placing new residents. 
  • Avoiding personal attachments. Liking a specific candidate can make it hard to say “no” if they don’t pass the tenant screening process. A property manager helps avoid emotional attachments that could lead to mistakes!
  • Catching warning signs. Spotting potentially bad tenants and identifying the good ones is easier with a property manager!
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Property owners benefit from better tenants and consistent income when outsourcing the tenant screening process to professional property management companies! 

Outsource Tenant Screening to a Cathedral City Property Management Company

When property owners conduct tenant screenings without the right experience or professional insights, they often miss warning signs of potential problems. To outsource this critical process to the right professionals, search for property management companies near me” or let the experts of McLean Company handle it for you. We know how important it is to screen rental applicants thoroughly to protect your rental properties and bottom line. Learn more about our screening process and professional property management services when you connect with one of our team members! 

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