Denver saw a record-high number of evictions in 2023. If you're a landlord you must pay attention to this news. A good number of these evictions likely occurred because they weren't properly screened by the property owner.
Tenant screening is a vital part of ensuring that anyone who stays in your property can afford to do so. Unfortunately, many landlords and property managers don't have the time or resources to conduct these types of tenant screenings themselves.
That's why many have turned to outsourcing the process to professionals. But is this a good idea? In this guide, we'll answer this question so you can decide if it's right for you.
It Saves You Time and Energy
Going through screenings for multiple candidates can often take you days to complete. What's more, the process can be quite tiresome. As such, outsourcing can be a great way to manage your stress as a landlord.
Many screening companies use technology that can provide all of the tenant information almost instantaneously. This allows you to devote your time as a landlord to more important endeavors.
Ensures You're Compliant
You indeed have a legal right to perform a tenant screening. That being said, both federal and state laws dictate how you can perform them. For example, on a federal level, you can't discriminate based on things like race, sex, religion, or other similar characteristics.
Similarly in Colorado if you violate laws surrounding portable screening reports you could be charged $2,500, plus court costs and attorney fees.
By outsourcing your tenant screening services you ensure that you're compliant with any national or local laws which can help you avoid expensive fees and lawsuits.
Provides You With Better Tenants
Outsourcing your tenant screening will provide you with the best tenants. This is one of the biggest benefits of outsourcing. These tenants not only pay their rent on time but also take good care of your property.
They're also more likely to stay with you for a longer period. This reduces the amount of time and money you need to find tenants each year.
What Should the Company Screen For?
At a bare minimum, you want to make sure that the screening company makes sure the person can afford to live at your property. This will involve verifying both their employment status and income status.
However, if they want to ensure that you don't get bad tenants they need to expand the screening into a thorough background check. This will involve looking at their potential criminal history as well as their rental history.
If they have a history of causing landlords trouble you should go with a different tenant.
One of the disadvantages of outsourcing is that some companies only do a surface-level screening. So make sure you're going with one that provides comprehensive services.
Need Help With Tenant Screening? Contact PMI Cedarboldt
We hope this guide helped you decide if outsourcing your tenant screening process is a good idea. Here at PMI Cedarboldt, we're passionate about making your life as a property manager easy while optimizing your profits.
To do this, we use our twenty years of experience to take over all of your busy work, including tenant screening. So if you're ready to find quality tenants, get in touch with us today.
