As of 2021, the population in New Jersey was nearly 9.3 million. Among those, 63.8% owned and occupied homes, while the rest rented.
As a landlord, you need renters for your properties. Yet, tenants are not all equal. Instead, you'll want great tenants.
Because of this, you may need to boost your tenant screening procedures. Excellent screening strategies help you find the best tenants, which is why many landlords outsource this duty.
Is outsourcing a smart move? Keep reading to find out.
Outsourcing Alleviates Work
Outsourcing tenant screening and other duties reduces your workload. The result is that you have fewer duties and work to accomplish. This frees up your time.
Hiring a company that offers property management services gives you more time and freedom. You can hire the company for tenant screenings or other services.
You can then use your extra time to handle other rental property duties. You could also use the extra time to do other things.
Alleviating your duties also reduces stress. Stress, unfortunately, is a common emotion that landlords experience.
Outsourcing Provides Better Results
The tenant screening process serves a vital role. The primary role is finding better tenants. You'll understand why this matters if you've managed rental properties for some time.
The quality of your tenants affects everything in your business. After all, managing good tenants is easy. Unfortunately, managing bad tenants is stressful, time-consuming, and challenging.
As you learn how to outsource tenant screenings, you'll understand how this works. It begins by hiring a property manager.
The property manager uses various screening procedures. They use these with each person who applies for a unit. The procedures might include:
- Conducting a criminal background check
- Evaluating the person's credit
- Researching the person's prior rental property history
Tenant screenings help you learn more about a person before renting to them.
It Helps Improve Other Metrics
Finding better tenants helps you improve other parts of your business. You can measure these with various metrics.
First, it can improve your vacancy rate. A vacancy rate refers to how long your units are vacant between tenants. If you have a high rate, you might be losing too much money.
Next, you might improve your tenant turnover rate. This rate refers to how long each tenant stays. The goal is to find long-term tenants.
Each time someone moves in or out, you must spend money. Therefore, reducing the rate helps you cut costs.
Screening new tenants also helps you increase your rental revenue. Most good tenants pay their monthly rental payments on time. These individuals want to avoid late payments and derogatory remarks on their credit.
Outsource Your Tenant Screening Procedures
The tenant screening procedure is vital for finding great tenants. Yet, it requires work and skill. Therefore, outsourcing is the best solution for most landlords.
Do you need better tenants? Are you short on time? Outsourcing your tenant screenings is the best solution for these issues.
Contact us at Sojay Property Management. We can help you find better tenants and assist with other property management duties.