How do you keep your Florida property in good shape?

Maintenance is part of it but selecting the right tenants is just as important.

You shouldn’t rely on your intuition when selecting a tenant. It’s vital to have a proper screening process.

Keep on reading to get a more in-depth overview of how you should screen your Florida tenants.

#1: Check their background

Many companies offer background checks. They provide information about the tenant’s credit history, past evictions, criminal activities, and other public records.

The information that’s collected can be useful during your selection process to eliminate potentially problematic tenants from your prospect pool.

#2: Run a credit check

Running a credit check is a vital step as red flags will appear if there’s something out of the ordinary. First, make sure they don’t have any unpaid balances, maxed out credit cards, or late payments. All these signs can point to payment issues in the coming months or years.

Another essential step is checking whether they are heavily in debt.

Smaller incidents don’t necessarily signify that you’ll have problems in the future but if you see a pattern of financial issues, it’s a bad sign and you should continue your search.

#3: Meet prospective tenants

Organize an open house. This way, you get to meet all the prospective tenants. When you talk to them face to face, you’ll get a better understanding of who they are and if you’d want to rent to them.

When you meet the potential renters, it’s your chance to ask them questions. Speak to them in an open and honest way. If you have any particular concerns, speak your mind. You might find out interesting and helpful information about them.

The following are questions you could ask:

• Why are you interested in this property?
• How long are you planning to stay here?
• Do you have any big changes or moves coming in the near future?
• Why are you leaving your previous place?
• How are you doing at work?
• What is the most important thing for you in a rental property?

#4: Have them fill out an application

Don’t let any tenants apply without filling out an official application form. It’s where you gather important information about them. For example, you could inquire about their employment, income level, and financial well-being.

You could also ask for personal references and previous landlords’ contact information as well. This information will help you make better decisions when selecting the right candidate.

#5: Verify the important parts

Data collection is essential. The background and credit checks give you the necessary information, but you shouldn’t solely rely on this data when making your decision.

You should verify the information that the prospective tenants have given to you. Interview key people. For example, previous or current employers and the personal references they gave you. Make sure that these people are independent of each other. This ensures that you are getting high-quality information.

Verification means contacting their previous landlords as well. Most likely, the landlords will be honest with you because they no longer have any underlying interests anymore. Ask them whether the tenant paid rent on time and if their move-out came as a surprise to them.

Additionally, ask if the neighbors complained about anything. If they were loud or if their pets caused any problems, these can serve as potential red flags.

How to deny an applicant after screening?

You need to comply with the Fair Credit Reporting Act (FCRA). Landlords need to notify the candidate that they got a denial as a result of their credit report or related causes. The proper response is an adverse action letter. You need to follow the Fair Housing Act as well.

When you deny an applicant, then have supporting documentation ready. Make sure your actions aren’t against any regulations and laws. When in doubt, consult with an attorney.

Here’s a list of some possible reasons for denial:

• Criminal history
• History of evictions, property damage, or unpaid rent
• Income isn’t enough to support the rent
• You can’t verify their employment

The bottom line: how to effectively screen tenants?

Screening your tenants is an important step for every landlord to take before making your final decision.

Arrange to have an open house to personally meet your prospective tenants. Interviewing them can uncover important aspects to help you in selecting the best candidate in Florida.

Remember to run credit checks and check their background.

Call or meet with individuals who have prior experience with your candidate. This includes previous and current employers along with their former landlords. Pick at least two references that don’t know each other. This way you can be sure to collect information of the highest quality.

The post Quick Guide to Effective Tenant Screening in Florida, Florida appeared first on Prime 1 Property Management.

“Should I manage my property or should I hire a property manager?”

This is a common question that many Florida rental property owners ask.

That’s because the way a rental property is managed can make all the difference to its success and profitability. Deciding who takes care of the property is an important decision.

Generally speaking, self-managing your property is better for those who have the time, skills, experience, and resources. Without any of these, self-managing your property can be very difficult and unsuccessful.

On the other hand, some property owners may decide to hire a property manager to take the responsibility off their hands so that they can enjoy their returns without having to deal with the hassle.

In today’s blog, we are going to compare the advantages of each option to help you make the right decision for your Florida property.

Why You Should Hire a Property Manager

A property manager can help you in the following areas:

1. Time

Do you have the time to manage and respond to any issues related to your rental property?

Having adequate time is key.

Aside from tenant issues, you need ample time to carry out annual inspections and market your vacant units.

A property manager can help you in this regard. You will have more free time because of the tasks and responsibilities the property manager will take care for you.

2. Vacancies

Every day that your property stays vacant will cost you money.

A property manager has the necessary tools and strategies that will help get your property the exposure it needs to be rented as quickly as possible.

3. Network

Who knows the ins-and-outs of the rental property business better than a property manager?

A good property manager will have directly managed a few dozen properties in his career. During this period, they will probably have made relationships with suppliers allowing them to get you better prices on materials, contractors, and services.

4. Money Management

An experienced property manager will be able to keep your property’s finances in order. Among other things, he or she will ensure that rent is collected on time and that operational expenses are handled properly.

5. Legal Backing

The landlord-tenant relationship is one that is guided by many laws. From the Federal Fair Housing Act to habitability laws to security deposit laws, understanding them is crucial.

A good property management company is knowledgeable on all rental property-related legal matters.

Hiring a Property Management Company

Hiring the right property management company can be very beneficial for you and your rental property. That said, no two property managers are created equal. As such, always do your due diligence prior to hiring one.

To improve your chances of selecting the right manager, you need to be cautious. Ideally, you want to ask your local apartment association or colleagues for some recommendations.

You also want to look up professional directories on the World Wide Web. Visit the website of the Institute of Real Estate Management (IREM) and search for “find a professional.” Or alternatively, visit the website of the National Association of Residential Property Managers (NARP) and search for “property managers.”

Ideally, you want to ask them questions such as:

• How do you market your clients’ rental properties? Look for a property manager that uses a variety of marketing strategies, from email and social media marketing to the use of “For Rent” signs and newspaper ads.
• Can you guarantee occupancy? One that can guarantee occupancy will likely have a good tenant screening process.
• What percentage of the tenants you manage renew their lease? As a baseline, look for a lease renewal percentage of no less than 80%.
• What is your average eviction rate? Look for a property management company with the lowest eviction rate. Broadly speaking, choose one that doesn’t exceed an eviction rate of 5%.
• How successful are you at retaining owners? If the company is retaining most of its clients, it essentially means that they are doing a good job. As such, look for an owner retention rate of more than 97%.
• How long have you been in the property management business? The longer a company has stayed in the business, the richer the experience they have.

Why You Should Self-Manage Your Rental Property

By now, you probably know that being a landlord isn’t just about collecting rent at the end of the month.

Managing your property can help you in the following regard:

1. Management Fees

Property management companies obviously charge for the services they offer.

That could have a an impact on your bottom line, especially if you are just getting started.

That said, you’ll be responsible for all the tasks related to your property which means that you will have to invest more of your time in the property’s maintenance.

Good examples of these tasks include property advertisement, tenant-screening, property upkeep and maintenance, and legal matters.

Only you know how much your time is worth and wether you would value the helping hand of a professional.

2. Day-to-day Decisions

If you decide to self-manage your property, you will have complete control over the day-to-day running of your business.

You’ll be able to make all the important and minor decisions that comes with managing your own investment property.

That means overseeing everything from how to advertise your vacant unit, which contractors to hire, and how to collect rent from your tenants.

If the idea of overseeing these details gives you peace of mind, that might be the only convincing you need.

But keep in mind that quality property managers like Florida Property Realty would be able to provide you with reports and updates that would give you control over every decision made.

Self-Managing Your Rental Property

If you decide to manage your property yourself, make sure you familiarize yourself with the landlord-tenant law as well as the fair housing rules. You should also learn how to draft a solid lease agreement, it’ll become very useful in the future.

There you have it, some of the differences between hiring a property manager and self-managing in Broward Country Florida.

The post Hiring a Property Manager vs. Self-Managing: What’s Better? appeared first on Prime 1 Property Management.