The words ‘vacancy rate’ cause real estate investors to break out in a cold sweat, and rightly so. A high vacancy rate can blow a hole in your profits and cash flow. Needless to say, filling up vacancies as soon as possible is the top priority for landlords, to the extent that the fear of any delay causes most landlords to drop their guard. They tend to ignore due diligence while screening tenants. As a result they end up with problem renters, a scenario that might possibly lead to evictions and legal disputes. These issues can result in a greater damage to their cash flow, apart from causing mental agony.
It is for this reason that I strongly recommend a thorough tenant screening. The good news is that there are tools which make tenant screening extremely easy, fast and hassle-free nowadays.
In this guide, I will discuss the most important things you should consider when screening rental applications and also provide some actionable tips on how to do it the right way. By not thoroughly screening your applicants, you’re putting your rental income, your property, and the neighborhood at risk.
An Engineer by trade, after the birth of my two kids, I decided to make the move to entrepreneurship to be able to spend more time with my children. I used my experience in Engineering leadership for 17 years specifically in building systems and processes to supercharge my real estate investing journey without over-leveraging and taking undue risks. In my first 2 years investing full-time, I purchased, renovated, rented, and refinanced properties creating a $4M rental portfolio and replicated my six figure income within the first year. It is now my passion to empower others to pursue entrepreneurship through real estate investing to live an empowered and financially free life.
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