Is Outsourcing Your Tenant Screening Process a Good Idea?
As a landlord, one of your most critical tasks is finding the right tenants for your properties. Good tenants can mean a steady income and a well-maintained property, while the wrong ones can lead to endless headaches and financial losses. This is why adequate tenant screening is so vital.
Screening includes checking credit histories, criminal records, employment verification, and past landlord references. With the rising complexity of the process, many landlords are considering outsourcing this task. With that said, let's get into whether this is a wise choice and why.
The Benefits of Outsourcing Tenant Screening
Outsourcing tenant screening can offer several advantages. Here's what you can expect:
A project management company has access to various databases for credit, criminal, and rental history checks. As a result, they offer a more thorough screening than most landlords could perform on their own.
Professional screening services can often return results faster than you might be able to do yourself. This is a huge advantage because it speeds up the leasing process.
By outsourcing, you can focus your time on managing your properties and improving tenant relations. It'll be a relief to not be bogged down by the screening responsibilities.
Outsourcing can ensure that every applicant is screened the same way, which can help in defending against accusations of discrimination. You'll also have proof that all approvals and denials are done fairly.
Potential Downsides to Consider
While outsourcing is beneficial, there are some potential drawbacks. Here are a few of them:
Outsourcing will incur costs. Just remember that the service is well worth it. The money you spend will likely result in quality, long-term tenants.
Distance from the Process
Some landlords prefer to meet and assess potential tenants personally. Outsourcing might reduce the opportunity for you to get a personal feel for prospective tenants.
Sensitive Information Handling
Tenant screening involves sensitive personal information. It's imperative to ensure that the company handling this information is reputable and follows strict data protection protocols.
Making an Informed Decision
Before outsourcing to a property management company, you should weigh the pros and cons based on your specific circumstances. Consider the following:
Size of Your Operation: If you have a large number of properties, outsourcing will save you enough time and resources to justify the cost.
Familiarity with Tenant Laws: If you're not fully confident in your knowledge of tenant laws, outsourcing could help you avoid legal pitfalls.
Sensitive Information Handling: Tenant screening involves sensitive personal information. It's imperative to ensure that the company handling this information is reputable and follows strict data protection protocols.
Reliable Property Management in Blue Springs
Outsourcing tenant screening is a smart move for any real estate investor who values efficiency and expertise. Of course, if you need help with the screening process, we can do it for you.
At PMI KC Metro, we provide various property management services including rent collection, maintenance, marketing, and more. We are property managers for several properties in Blue Springs, and our company aims to protect our client investments.
If you have questions, call 816-200-0519, or contact us on our website!