Posts Tagged ‘screening tenants’

The Process For Screening Tenants And Earning The Most Cash Flow

Friday, February 6th, 2015

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Real estate investors who understand the process for screening tenants should be able to earn the greatest cash flow with their rental property. Since the quality of tenantsis imperative to the success of a rental property, investors need to make sure that they have the best individuals on the market.  Here we will go over how to find the best tenants and earn the greatest amount of positive cash flow.

The first step to screening tenants involves obtaining a large number of leads. Investors who are able to expose a rental property throughout the market should have plenty of tenants to deal with. Those who have plenty of leads coming in can be stringent with their rental requirements, as they only accept the best tenants on the market.  Investors who are in a position like this are able to earn the greatest amount of money, while dealing with the least amount of problems.

When screening tenants, investors need to analyze them from a variety of different angles. An investor should check a potential tenant’s criminal history, credit report, tenant history, and work history. Investors who have a certain set requirement for all of these particular checks should be able to accept the best tenants in the region, while giving potential tenants who have been denied a reason for this decision.

Investors who take the process of screening tenants seriously should charge potential tenants an application fee. A fee of about $25-$35 is appropriate and will be able to cover the cost of all the mandatory checks. This will also keep those who may be less than ideal from completing a tenant application and even trying to apply for residency.  Having an application fee is standard practice now days and most potential tenants will not be surprised or turned off by it.

Investors should do their research and determine how to run all of these background checks and verify their validity.  This can be quite a process that a large number of investors aren’t interested in.  Investors who don’t want to take the time required to complete the screening process, should hire a company to do all these checks for them. These companies will allow investors to have a good understanding of the kind of people they are dealing with, and therefore, enable them to earn the greatest amount of positive cash flow.

The investors who take the process of screening tenants seriously should end up with plenty of high-quality occupants.

Asking questions with these tips in mind will help save real estate investors thousands.  For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com.  We are the nation’s number one home buying franchise with over 15 years of experience.  Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business.  Come see us for more information.

Screening Tenants Properly For Maximum Earnings

Wednesday, December 31st, 2014

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Since a rental property investor’s income depends entire on their cash flow and rests solely on their tenants, these individuals must be selected with care.  Investors who take the time to screen tenants should be able to earn the greatest returns on their investment.  Here we will go over the steps involved in screening tenants and be able to fill an investment with those who are going to pay their rent on time.

Simply purchasing a rental property that is ideally located doesn’t guarantee that an investor will be able to earn a profit.  The amount of profit that an investor can earn is tied directly to the quality of tenants who live on site.  The investors who commit to a comprehensive process for screening tenants should find that they are able to earn the most in the business.

The first step of screening tenants should start with the application process.  Simply charging an application fee in order to handle the checks that need to be performed will be enough to keep most bad tenants away.  This will also cover the cost of the background checks that need to be performed.  A fee of $35 to $50 is an acceptable amount that most good tenants are going to be willing to pay.

After receiving an application, the next step to screening tenants involves performing a background check, employment check, criminal history check, a reference check, and a tenant history check.  Many investors choose to hire a company to handle all of these checks and those who do should be able to get a good understanding of the quality of a potential tenant.

Investors who want to take the process of screening tenants into their own hands should get to work.  Start with the basic first, like the background check, criminal history check and a credit check.  This should give an investor an idea of whom they are dealing with and if any of these checks reveal bad news, the process can stop there.  If everything checks out well, move into the employment check, rental history check and the reference check.

Investors who are screening tenants should develop a predetermined criterion that a potential tenant must meet in order to be considered.  Tenants who don’t meet a certain requirement can simply be turned away, while given a concrete reason for their denial.  This will keep rental property owners in good standing with the community and help them avoid frivolous lawsuits.

Investors who take the time and dedication required when screening tenants should find that they are able to earn the greatest cash flow.

Asking questions with these tips in mind will help save real estate investors thousands.  For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com.  We are the nation’s number one home buying franchise with over 15 years of experience.  Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business.  Come see us for more information.

HomeVestors Knows That Screening Tenants Requires A Step-By-Step Approach

Friday, January 31st, 2014

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Take the necessary time when putting tenants through a screening process to make sure that they are telling the truth. 

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.  The company knows that rental property investors should put forth a full effort when running tenant checks.  Those investors who know what red flags to look out for when screening tenants are able to avoid bad tenants that can ruin a rental.

The first step of screening tenants involves putting them through a phone interview or meeting with them in person.  During this initial interview, ask them questions that would reveal information that would bar them from renting here.  This will be able to narrow down potential tenants and can avoid the time commitment required to screen tenants.

After showing a tenant a rental, the next step of screening tenants involves giving them an application form.  Most rental property owners charge an application fee, as it can reduce the number of bad tenants and help to pay for the screening process.  A standard fee of $35 to $50 is generally acceptable and most good tenants are willing to pay this.

After receiving the completed application, the process of screening tenants becomes technical.  While many rental property owners like to submit a tenant’s application to a professional screening company, this is bound to cost a bit more.  For this reason, many rental property investors opt to perform the screening process themselves.

First start with the credit check when screening tenants.  If this comes back with positive results, begin the criminal history, employment and previous rental experience background check.  If all of these reports come back with a positive spin, start to dig a bit deeper into the information provided on the application.  Consider contacting the individual listed under previous rental history.  The key is to make sure that one is talking to the correct individual so do some research to find valid contact information and don’t necessarily trust the information as provided.

When contacting employment sources, do what is necessary to talk to the HR department.  Contact these individuals through company literature and ask the necessary questions regarding a potential tenant.  If a potential tenant appears to be truthful on their application, the screening process can come to a close and the tenant should be notified about their acceptance.

Rental property investors who understand the importance of screening tenants are bound to find that this drawn out process is worth the effort.  Those investors who focus on obtaining high quality tenants are able to benefit from the fruits of their labor.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties.  Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community.  In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction.  For more information, visit www.HomeVestors.com.