Sometimes you just learn things that you have to write about and share with others. The point in my writing this is not to poke fun at anyone but rather for us to learn. So, what was the advice I heard that was worthy of writing?
While socializing with some old friends, some of my best friends, I heard my investor friend say, “The tenant screening process isn’t that important.” When I heard this, I just about fell down. In fairness, this friend only has three properties and has had good luck, so far. The key phrase is, “so far”. However, I was quick to say that the tenant screening process is one of the most important, if not the most important, process in the property management process.
The quality of the tenant is crucial to multiple factors, most importantly rent collection. If rent is not collected, it hurts the owner’s cash flow not to mention the legal process of removing a tenant, if needed. There can be multiple other problems that can happen, which include maintenance issues, excess wear and tear, etc.
So, if you are self-managing your property or you are leveraging a property manager, be sure that you or they have a stringent tenant screening process. Over the life of your investment, you will be very happy you did so. If you require property management services in Fort Collins, Loveland, Windsor, Greeley, Wellington, or the rest of the Northern Colorado area, please contact Real Property Management of the Rockies for more information. We would be honored to partner with you.