More landlords than ever report tenants have lied during the tenant screening process in recent years. Landlords need to be more careful during tenant screening, but this can take significant time and effort. So, is outsourcing this step when finding new tenants in the Colorado area a good idea?
Below, we explain several benefits and drawbacks of using an external company to do this for you. As you read each one, consider how it would help when you have the rest of your role as a landlord to look after too.
The Benefits of Outsourcing
There are several good points when it comes to using an external service. Though, bear in mind this is not the only service such companies offer.
Following Fair Housing Laws
Buying up houses for sale and turning them into rentals comes with its own regulations. This is even more true when you start looking for people to move into them. Anti-discrimination policies can really start to pile up and are easy to trip over during the screening process.
A dedicated property management company has the expertise to avoid these. Similarly, they can also respond if someone claims they received poor treatment. This takes any anxiety off of your shoulders.
Time and Cost Savings
Being a landlord, especially for several properties, can often mean rushing back and forth between the many issues that might crop up. When you need to bring new people into a home, screening them can impact both the money you earn and the free time you have.
Outsourcing your tenant screening means you do not have to do any of this. While you might want to have the final say in most tenant issues, they will handle the nitty-gritty of every interview and background check.
You can then invest that time into researching other investment properties for sale in your area so you can build up your portfolio instead.
Background Check Expertise
A tenant screening service will already have a dedicated pipeline for running background checks. They will often have a subscription to appropriate services or a network of people who can make checks for them. This means they will get the best results each time.
Drawbacks of Outsourcing
While outsourcing is useful, there are negatives to engaging with an external company. These drawbacks are few, though:
Loss of Control
Not screening the tenants yourself might mean you occasionally get renters you do not gel with. While this is not the end of the world, as you might not need to interact with them much, it is always better when things are easier.
It will cost you to screen people using an external company. Of course, weigh this cost up with the amount of time, effort, and money you put into doing the role yourself, and you will often find it is worth it.
Perfect Your Tenant Screening Process
The tenant screening process is challenging enough without all your other landlord duties piling up. It might be worth investigating one of the best screening services. By this, we mean us.
We can help you handle many areas of responsibility regarding your landlord duties. So, give us a call and find out more about how you can have an easier time as your Colorado property investing portfolio develops.