Should You Screen Potential Residents?

One of the best ways to get a good return on investment for renting residential properties is to have solid residents. It's not enough to have a high occupancy rate, and in some cases, this can be actively detrimental if that high occupancy rate is accompanied by a high rotation of residents leaving or being found unsuitable.

The ideal scenario is one where residents are stable, respect the property , and are reliable about paying their rent on time, every time. One of the best ways to achieve this with your residential investments is to think about a screening process.

Just Like A Job

In the same way that you exercise care when it comes to hiring the right people to work at a job, the same can often be true for finding people to live in your residential investment. You should never trust that the rent you charge is going to be a sufficient gatekeeper to filter out people who could potentially complicate or negatively impact your investment.

Character Check

One component of screening that many decide to forgo is a background and criminal record check. Often, this first step, when done thoroughly, can raise early red flags and weed out potential problem residents. A person with a criminal record for assault, for example, may not be someone you want as a resident. You may also want to verify references.

Financial Check

The next component of screening should be looking at the financial aspects. Does the potential resident have a good line of credit? Is there a verifiable employer that can ensure steady pay that translates into steady rent? Do they have a rental history?

Interview

A final step is interviewing the potential resident. This will give you a good feel for the type of person who will take up residency and can often be a critical component.

If you'd like to optimize your property management experience, contact Occupancy Solutions and let us help.