The FBI put out a warning in recent years about an increase in rental and real estate scams. There was a 64% increase causing landlords to lose more than $350 million in 2021.
One of the biggest scams came in 2022 when underqualified applicants claimed to have been recently hired by Wells Fargo for a work-from-home job with a salary of $72,000 a year. Each applicant claimed to be moving from another area.
Cases like this show why the tenant screening process is so important. It can be a time-consuming and expensive process for a property owner but do you see the necessity?
Keep reading to learn whether you should outsource your tenant screening process to a property management company in Tampa Bay, FL.
Benefits of Outsourcing
Tenant screening includes doing a criminal history background check, a credit check, and a look at eviction and rental history. Let's look a the advantages of outsourcing the job of finding potential tenants.
The tenant screening process is time-consuming. If you are new at this and are unfamiliar with the most efficient ways to carry out background checks, it can be quite labor-intensive.
Outsourcing this process allows you to focus on other aspects of your rental property business. A property management company acts quickly and keeps the best applicants from moving on to the next property.
A professional property management company has the screening process mastered. It's part of what they do every day. Every application screening follows the same process, keeping things consistent.
Fair Housing Act Rules
Failing to follow the rules of the Fair Housing Act can put you in legal trouble. Under these rules, you must judge all applicants the same no matter their nationality, color, race, gender, familial status, religion, or disability.
A mistake in this area can result in a lawsuit. A property management company has experience with this and understands the criteria and the laws.
Takes the "Personal" Out of It
A property management company does tenant screenings routinely and in a business-like manner. It's very objective and looks at the renter in relation to their credit score, income, and renting history.
They are trained to notice red flags and help you avoid dealing with difficult renters.
If you do the screening yourself, you might end up forming a personal bond with a renter which can end up clouding your judgment. This can also lead to mistakes you might regret.
Outsourcing Tenant Screening
As a rental property owner, you might have more pressing things on which to focus your time than tenant screening. Leave the advertising, tenant credit check, and tenant background check to the pros who know all the tenant screening rules to keep you compliant.
We at PMI Arrico Realty & Property Management in Tampa, FL are a full-service real estate asset management company. Our team of licensed and experienced real estate professionals can take care of all your tenant screening needs.
We offer a full range of services. Contact us today through our website or give us a call at 813.662.9363 to learn more.