In the United States, the average cost to rent a single-family home in the last few years was $1,600. This shows that owning an investment property is a lucrative way to earn extra income.
When you own a rental property, finding the right tenants is essential. Unfortunately, what rent you charge won't make a difference if your tenants aren't paying.
Leasing to the wrong person can cost you a lot of time and money, so as a landlord, you should take every step to avoid bad tenants. One way you can do this is to implement a tenant screening process.
However, there is a right and wrong way to go about this. Keep reading and learn more about tenant screening in Des Moines, Iowa.
Put It In The Rental Application
As a landlord in Des Moines, it's essential to understand that if you're implementing tenant screening into your application process, you must make potential applicants aware of this. One way you should do this is by putting it into the rental agreement.
This way, everyone applying to rent your real estate investment property understands the agreement. This is important because some people may be uncomfortable being screened and wish not to apply once they know it's a prerequisite.
Run a Criminal Background Check
Another aspect of tenant screening includes running a criminal background check on rental applicants. A credit check is no longer the only way to screen a tenant to weed out ineligible renters. A criminal background check will reveal critical information, such as if the applicant has been convicted.
Some criminal background checks include access to the national sex offender list. Having a clear indication of who you're renting to can help keep your community safe. You want to ensure you're leasing your investment property to new tenants who will treat your home as their own.
Use a Property Management Company
If you find that finding tenants and managing your rental properties are taking up much of your time, you can outsource. A property management company will take over managing your real estate, so you don't have to be doing things such as:
- Advertising your rental properties
- Finding new tenants
- Informing tenants of the screening process
- Performing a credit check
- Performing a background check
- Verifying application information, employment, and income
- Performing a tenant interview
Finding the right Des Moines property manager to work with is essential. This is why discussing your needs with the company before committing to anyone is important.
Start Tenant Screening For Better Tenants
One way to ensure your new tenants are good is to start tenant screening. If you do this, remember to include it in the rental application so prospective tenants are aware.
Including a criminal background check in the process is your right as a landlord. However, you can choose to outsource this to a property management company.
Contact us if you're looking for a full-service real estate asset management company in Des Moines, Iowa. We offer a free rental analysis and have been in the industry for almost 20 years.