It's shocking that 44% of people who live in Charleston are renters.
In Charleston, landlords face the challenge of finding reliable tenants while navigating complex laws. Many property owners in Charleston wonder if outsourcing their tenant screening process is a good idea.
Should a property management company take the reins? Let's explore the benefits and drawbacks of this decision.
Tenant Screening Costs
One of the first considerations for landlords is the cost of tenant screening. Running tenant credit checks and tenant background checks can be expensive, especially for property owners with several units.
When outsourcing the tenant screening process, these costs are often rolled into the management fees. It might seem like an added expense. It can save landlords money in the long run by preventing bad tenants from moving in, though.
Tenant Screening Laws
Charleston, like many other cities, has specific tenant screening laws in place. These laws dictate what information can and cannot be used in the tenant screening process. They also outline the rights of both landlords and tenants.
Staying compliant with these laws can be a complex and long task. Property management companies are masters of the local tenant screening laws.
They can ensure that the screening process is conducted in a legally sound manner. This will decrease the risk of legal issues for landlords.
Tenant Credit Check
A crucial part of the tenant screening process is the tenant credit check. This check provides insight into a potential tenant's financial history. It includes their ability to pay rent on time.
Property management companies often have access to credit reporting agencies. They can efficiently run credit checks on prospective tenants. This expertise can help landlords make informed decisions about tenant suitability without having to deal with the intricacies of credit reporting themselves.
Tenant Background Check
Another essential component of tenant screening is the background check. This check reveals the following about a tenant:
- Criminal history
- Eviction history
- Rental history
Property management companies have the tools and expertise to conduct thorough background checks. By outsourcing this aspect of tenant screening, landlords can receive full reports on prospective tenants. This ensures that they select tenants with a clean record and a history of responsible renting.
Peace of Mind
Outsourcing the tenant screening process can also provide landlords with peace of mind. Property managers are experienced in identifying red flags. These warning signs might not be immediately apparent to individual landlords.
They can spot potential issues. They'll recommend whether a tenant is a good fit for a property. This helps landlords avoid the headache of dealing with problem tenants in the future.
Drawbacks
There are clear advantages to outsourcing tenant screening. There are also some drawbacks to consider, though. Landlords need to weigh the benefits of expert tenant screening against the expense of hiring a property management company.
Outsourcing Your Tenant Screening Process Could Be Brilliant
Outsourcing the tenant screening process could be a wise idea. The outsourcing decision depends on your business circumstances and preferences.
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