As a landlord, your investment property stands to be a tremendous asset. With the right decisions and some good fortune, it will generate income and build wealth for you and your family for as long as you own it. Unfortunately, a bad tenant is one of the biggest threats to your valuable real estate investment.
That is why you must screen any potential renters before signing an agreement. At Kanga, we do the right thing! And we believe the key to securing quality tenants is thorough screening.
How Property Management Companies like Ours Perform Effective, Reliable Tenant Screening
Tenant screening evaluates potential tenants to weed out those at high risk of paying rent late or damaging or destroying your property – or your neighbors’. A thorough tenant screening by Kanga includes, but is not limited to:
- An interview
- A criminal background check
- Proof of income
- Checking bank account funds
- A credit check
- References from employees and past landlords
- Rental history and past evictions
- Checking sex offender registries
Lastly, Kanga’s tenant screenings include references from past landlords and their current employers. Potential questions for past landlords are:
- Would you rent to this tenant again?
- Did they damage your property?
- Did you refund their deposit?
Questions for an employer may include:
- Does the applicant hold a full- or part-time position?
- What is their annual salary or hourly rate?
- How long have they been working with the company?
There are state-specific, landlord tenant laws regarding tenant screening reports. For example, in Florida, the Federal Credit Reporting Act (FCRA) mandates that you get written consent from a potential tenant before checking their credit history. As an experienced property management company, Kanga has extensive knowledge of the tenant screening process and all relevant laws.
Why is Tenant Screening Important for Your Real Estate Investment?
Kanga’s tenant screening services help landlords rest easy knowing that their property is in good hands and they can enjoy the financial and emotional peace of mind that comes with having high-quality tenants. Benefits of this process include:
Avoid property damage
Leasing to a high-quality tenant with Kanga’s help gives you the confidence that your property is safe from physical harm. Conversely, an irresponsible tenant with a history of property evictions for damage is more likely to result in costly repair and maintenance bills. In addition, if your rental must remain vacant while you take care of the repairs, you’ll lose rental income.
Keep other tenants and neighbors safe
A criminal history can include anything from violent crime to vandalism. By screening potential tenants with a criminal background check, Kanga helps you avoid exposing residents of neighboring properties or other tenants to irritating or dangerous activity. In addition, you could wind up liable if a lousy tenant injures or harms someone on your property.
Tenants who don’t pay their rent on time can cost you money. And if it comes to it, evicting a tenant can be an expensive and time-consuming proposition. In Florida, an eviction requires a court order and attorney fees. Evicting a tenant costs an average of $2,500 to $3,000 and usually takes three to four weeks.
Reliable tenants also ensure a low turnover rate. Renewing an existing lease rather than finding a new tenant will save you time and money.
Peace of mind
Most importantly, when Kanga screens your tenants, you have peace of mind that you have responsible, financially reliable tenants who will treat your property with care. And sometimes despite our best efforts, a tenant doesn’t work out. But if this happens within the first six months, we’ll find a new tenant for you at no cost. And with our quality property marketing, your unit won’t be vacant for long!
Find Quality Tenants in Palm Beach with Kanga Property Management
Kanga Property Management has ten years of experience with the Palm Beach and Broward County rental markets. Our services include complete background and financial checks to help real estate investors identify red flags so they rent only to quality tenants. We guarantee our tenant screening services so you know you’re in good hands. Contact us to learn more about our property management services.