One of the best ways to get a good return on investment for renting residential properties is to have solid residents. It's not enough to have a high occupancy rate, and in some cases, this can be actively detrimental if that high occupancy rate is accompanied by a high rotation of residents leaving or being found unsuitable.

The ideal scenario is one where residents are stable, respect the property, and are reliable about paying their rent on time, every time. One of the best ways to achieve this with your residential investments is to think about a screening process.

Just Like A Job

In the same way that you exercise care when it comes to hiring the right people to work at a job, the same can often be true for finding people to live in your residential investment. You should never trust that the rent you charge is going to be a sufficient gatekeeper to filter out people who could potentially complicate or negatively impact your investment.

Character Check

One component of screening that many decide to forgo is a background and criminal record check. Often, this first step, when done thoroughly, can raise early red flags and weed out potential problem residents. A person with a criminal record for assault, for example, may not be someone you want as a resident. You may also want to verify references.

Financial Check

The next component of screening should be looking at the financial aspects. Does the potential resident have a good line of credit? Is there a verifiable employer that can ensure steady pay that translates into steady rent? Do they have a rental history?

Interview

A final step is interviewing the potential resident. This will give you a good feel for the type of person who will take up residency and can often be a critical component.

If you'd like to optimize your property management experience, contact Occupancy Solutions and let us help.