No one said that the work of a rental property owner is easy. It can bear good returns but with that, it can bring you lots of headaches. You need to be alert and smart at the same time and manage things in your property around the clock. Renting the property to a complete stranger can become a bigger headache if you end up having a troublemaker in your hands.
Thinking of all these things, you may not want to become a landowner. But what if we told you that these all are true to a certain extent and others are all myths associated with property management? Surprised right?
If you are afraid of diving into property management, then here are a few myths that you should know about. Knowing this will help you in deciding how to handle this field properly. simply worrying and doing nothing will not help you at all. So, jump in and read about some of the misconceptions that people come across when handling rental properties.
Landlords should Give Importance to their intuition
Most of the landlords believe in going with their intuition. It is applicable to most of us. But are you sure of getting good results from it? Not so much. According to a study, more than 80% of property owners will go with the verification of the acquired information rather than depending on their intuition.
Even after that, you will see that many landowners are duped and provide their property to a bad tenant. It is because they simply went with their intuition and gave more credit to the face value. Only when you run a detailed inspection do you get to know the true colors of the person you are dealing with. Going on this in a systematic way you will get better results. And that is tenant screening. When you are running tenant screening on someone what should you look at?
- Financial history
- Eviction history
- Criminal record, etc.
An Ideal Tenant is Equivalent to High Credit Score
Do you focus on the credit score while inspecting a tenant? Then that’s where you are thinking wrong. One with the best credit score doesn’t need to be a good applicant. One should never decide upon the face value of the person. Bad credit may not be able to determine whether a person will be able to pay timely rentals.
Young applicants may not have a proper history of their credit but still will be able to pay the rent on time. Being in a hurry to remove such applicants from the list can lead you to get bad tenants on your property. So, choose wisely and allow the experts to make the decision rather than making a wrong decision all by yourself. It has come to the notice that landlords paying more emphasis on getting renters based on the regular income or stable job rather than credit history.
Still, it is important to get a full credit report as that will help you in determining the:
- Credit inquiries
- Payment timelines
- Student loans
- Open trade lines, etc.
One way to nullify the risk is by charging high-security deposits from those who have a poor credit score. This will mitigate the risk of non-payment in near future. This way you can keep a good tenant who doesn’t show appropriate credit points.
Monthly Payment is the Only Thing to look for in Tenants
Some of the landlords have tenants as a means of passive income. One fail can lead to another and it is good to be worried about that. One of the serious threats dangling over the property owners is or payment failures. To avoid that in the future you need to pay emphasis on tenant screening. This will help you decide the right applicant from the rest.
But amidst all don’t forget that depending just on the payment won’t help you get the right candidate. You may want to look at some other features also. Check if they have an eviction history or fights with last landlords. Yes, payment is a deciding factor but it shouldn’t be the only one. You must widen your scope and check for other red flags.
Doubts and myths can cloud our minds. Especially when we don’t have much idea about the topic. Those going for rental property business for the first time should tread these waters carefully. If you want to know more about the topic then getting in touch with the professionals will help a lot. It is at such times, that you understand their importance.
Property management companies in Howard County can help you get the right guidance and answer all your questions properly. They will clear all the myths for you as well. Especially with the tenant screening where you will require expert advice.