Renting a property is not just a sign and pay deal. Before the property can be rented, it is the right of the landlord or the hired property manager to check the tenants and their credentials. They are, after all, the ones who will occupy the property for a long period of time.
Checking on tenants credentials is necessary. The property management company is normally in charge of doing this. It is one of their responsibilities. It is also the right of the owner to do so. It is a way of assuring that the rental home will not only be paid for regularly but also to know if the property will be taken care of property.
So if you are one of those wanting to rent a property, expects these credentials to be checked before you will be given the go-ahead signal.
Income And Earnings.
Two of the headaches in property rentals are unpaid rent and late payments. These are what the landlords are dreading the most.
To make sure that these things will not happen, the tenants’ income is checked first and foremost. In the application, the income should be stated. The property manager then contacts the employer to verify if the information supplied is correct. There are cases where documents are even required to confirm the income status.
A tenant with good credit standing is what landlords sought for. This basically means that the person pays bills on time and probably is good with managing his or her finances. On the other hand, a tenant with bad credit standing is the opposite of the above.
From the credit score alone, the landlord will know if the tenant is reliable or not. Just like the income, credit score can be checked once all the details are given. A simple assessment is all it takes if the application will be approved or not.
Former Ownership or Rental.
The income or credit standing of a person is not enough for tenants to be approved or not. There is also the issue of past rent and ownership. Landlords prefer tenants with past rental history so they can check them out for feedback.
The landlord not only looks for a good report and referral, he or she also checks if the tenant actually rented the property in the past and is not merely using the info for rent approval. From past referrals, the owner will confirm if you will be a good tenant or not. The better the testimonial, the more chances it is for tenants’ application to quickly be approved.
Ratio in Terms of Debt.
Some of the more successful property owners assess the debt ratio of the tenant during the application. This is done by looking over the total debt amount in correlation with the amount the tenant is making.
This is how the company is assured that the tenant is not going overboard with his or her finances and to make sure that payments will definitely be made.
Verification and more verification. These are the steps that landlord or property managers take before a tenant is approved to rent a property.
Tag-Archive for ◊ Property Management Company ◊
If you are looking to rent out a piece of real estate, whether it be a home or commercial lot, one option to consider is renting through a property management companies. These companies, which are typically run by licensed real estate agents, market and manage rental properties for owners who wish to maintain a measure of distance from their tenants.
The role of a property management company is to serve as a go-between for the landlord (owner) and the tenant. Often these companies will accept rent from tenants, help address maintenance concerns, and express any tenant concerns to the landlord on the tenants’ behalf. The company will also help negotiate the lease on a home or commercial lot, and may market homes available for rent.
If you have ever served as the landlord for a property, then you know how valuable these services can be. Allowing someone else to screen maintenance concerns, market the piece of real estate, and draw up leases will free up much of your time to pursue other interests or homes to buy. The company also handles other unpleasant tasks that come with being a landlord, such as notifying tenants when rent increases and dealing with negligent tenants or eviction problems.
There can be some downsides to working with a property management firm as an owner. First, some of these companies do not behave responsibly toward tenants, as they have less of a vested interest in the property than you do. For instance, if your tenants are complaining of a maintenance issue, the company has the responsibility to deal with the problem. If they do not do so in a timely manner, you will have unhappy tenants, while you know nothing of the problem. If the problem is a serious one that could lead to personal injury, you could be held liable, even though the manager is the one at fault.
This is a rare problem, however, as most property management companies have your best interests in mind. After all, if the tenant becomes unhappy and leaves the home, you lose money, but so do they.
The best way to avoid any potential problems is to carefully screen the various companies you find as you look for a property management company to work with. Talk with other owners about their experiences in the industry. Choose a company that has a list of repair professionals on hand to call instantly. For instance, does the firm work with a qualified plumber, ensuring that your tenants can have their plumbing fixed quickly and efficiently when there is a problem? With the right company, you can have all of the benefits and few of the headaches, allowing you to earn income from your rental homes with little effort on your part.