Unlocking the door to a hassle-free landlord experience begins with the right key: tenant screening. But what if you could hand off this crucial process to a skilled external partner, sparing yourself the headaches of sifting through applications and background checks?
Is outsourcing your tenant screening the game-changer landlords have been waiting for, or is it a risky roll of the dice?
Read on to find out if outsourcing your tenant screening is a good idea.
Pros of Outsourcing Tenant Screening
Property management companies specialize in screening services. They're often familiar with the legalities and best practices involved. They may use advanced tools and databases to conduct thorough checks.
That will make it more likely you'll land quality tenants. Problematic renters can take a toll on your rental income!
Outsourcing can save you time and effort. Tenant screening involves various tasks, such as background checks, credit checks, and rental history verification, which can be time-consuming. By outsourcing, you can streamline the process.
Tenant screening involves handling sensitive information, and there are legal considerations to be aware of. Outsourcing to a professional service can help ensure that you comply with all the related housing laws and regulations.
Property management companies are well-versed in Fair Housing laws and regulations. They can help ensure that your tenant screening process complies with federal, state, and local anti-discrimination laws, promoting fairness and equal treatment of all applicants.
If you have a growing number of rental properties or a large portfolio, outsourcing tenant screening can be scalable. Professionals are better equipped to handle high volumes of screening requests efficiently.
By outsourcing tenant screening, landlords can free up time and resources. You'll be better able to focus on core responsibilities such as property maintenance and tenant relations. You'll even have more time to devote to other aspects of your life!
Cons of Outsourcing Tenant Screening
There are also some downsides of tenant screening you'll want to consider before you start investing.
Outsourcing comes with a cost. While it may save you time, it might not necessarily save you money. You need to weigh the benefits against the expenses associated with hiring screening services.
When you outsource, you relinquish some control over the screening process. If you prefer to be hands-on and make decisions based on personal judgment, outsourcing might not align with your approach.
If there are issues or specific requirements you have for tenant screening, there may be challenges in conveying those nuances to an external service provider.
Relying on an external service means you are dependent on their effectiveness and reliability. If the screening company fails to deliver accurate or timely information, it could impact your ability to make informed decisions about tenants.
For example, if you're listing your own home, you might want more control over the screening process.
Outsourcing Tenant Screening: Start Today
There are many advantages and disadvantages of tenant screening for you to consider. Hopefully, you now have some idea of whether it's the right choice for you.
Do you want more help managing your real estate empire? PMI Minnesota can provide you with top-quality services for commercial and residential properties. Get started with us.
