Most rental property owners in Ormond Beach understand the importance of screening tenants in order to protect their investment. What you might not know is that proper screening does more than just protect your rental home. It also increases your ROI.
A well-screened and highly qualified tenant will always contribute to a better rental experience. That outstanding resident will also help you earn more on your investment property.
Good Screening Leads to On-Time Rental Payments
Achieving the ROI you want requires that rent is consistently paid on time.
Good tenants do that.
When you’re screening for your next renter, always make rent payments a priority. You’ll want to evaluate their income to be certain that they have enough money coming in to pay rent when it’s due. You’ll also want to check credit. You’re looking for a demonstrated history that housing-related bills have been paid on time in the past. Red flags may include overdue and unpaid utility bills or money owed to former landlords and Ormond Beach property management companies.
We always recommend that the screening process include calls to former landlords. You can ask if rent was paid on time and if they ever had to serve a notice demanding that the tenant pay rent or move out. Check the national database for past evictions.
Better Maintenance Reporting and Response
Your ROI also relies on keeping your property well-maintained. If your home falls into disrepair during at tenancy, you’re going to spend a lot of money during the turnover process just making it ready for the rental market again.
Screening properly allows you to find a tenant who can be trusted to take care of your rental home. You don’t want a lot of damage; you don’t even want a lot of wear and tear.
Most importantly, a high-quality, well-screened tenant will be quick to report repair needs. Deferred and unreported maintenance issues are always more expensive than we want them to be.
Good tenants will not cause a decrease in your rental value. Again, landlord references can be valuable when you’re screening for this particular tendency. Check references and ask if the tenant received a full refund of the security deposit. Ask if there was any damage left behind.
Good Tenants Keep Vacancy and Turnover Rates Low
Most investors understand that vacancy is one of the most expensive parts of renting out a property. When rent isn’t coming in, you’re not going to increase your ROI. Additionally, you’re covering a lot of costs out-of-pocket without the benefit of rental property income. There are maintenance costs and cleaning and repairs, not to mention utilities, landscaping, and security. Vacancy homes are money drains.
When you’re screening for tenants, look for residents who have a history of staying in place for at least a few years. You don’t want to rent to tenants who tend to move every six months or who have broken lease agreements previously. Consistency leads to better ROI. You want a tenant who will renew their lease agreement year after year.
We can help you identify the best tenants for your Ormond Beach rental property. If you’d like some help with leasing and screening, please contact us at Oceans Luxury Realty.