The signs of summer’s approach are all around and plans for summer vacation are underway. Many families will take time to travel to far off destinations but a great many will stay closer to home. Perhaps they will stay at a hotel or they might rent a home or similar property for a summer adventure.
Renting a vacation property is the same as renting a long-term residence. A potential applicant searches for a property, makes a query, goes through the vetting process with the landlord, comes to a financial agreement, and moves in for a specific amount of time.
The options for properties are broad and the types and variety of properties continues to grow. In the past few years individuals took advantage of the recent economic downturn and purchased a new home, but instead of selling old for new, they became a landlord.
Recently the Los Angeles Times printed a lengthy article about becoming a first-time landlord.
From the Los Angeles Times (APR. 24, 14):
The real estate market has long worked on a simple system: If you want to buy a new house, sell the old one and use the equity for a down payment.
But the last few years of low ownership costs and rising rents have some move-up buyers trying a new approach: Buy the new house. Keep the old one. And rent it out. http://articles.latimes.com/2014/apr/05/business/la-fi-first-time-landlords-20140405
The temptation to be a landlord is great. Currently, the value of a monthly rent exceeds the cost of a monthly mortgage. Subsequently, the opportunity to gain additional income for renting an existing property is very real, but there are risks involved in becoming a landlord, especially with a vacation property.
Landlords and property managers of long-term residential rental properties know that the key to a successful relationship with a tenant begins with the vetting or application process. A landlord will conduct an interview, gather an application, and conduct a tenant background check.
The same process should hold true for a landlord renting out a short-term vacation property.
Adam Almeida, President and CEO of TenantScreeningUSA.com states: “There is no difference in renting a long-term residential occupancy to a short-term, other than duration. A landlord must conduct a tenant check in all rental situations.”
Some might question a tenant check for a single week of renting as the property rental is generally secured through a credit card deposit, but with any rental situation, long or short, comes the potential for risk, and risk mitigation is at the core of tenant screening.
Tenant Background Checks not only confirm the financial veracity of a tenant, but can be used to check criminal and sex offender histories. A thorough check of public records greatly assists in protecting property as well as neighbors and other local residents. Lack of tenant screening and subsequent bad tenants may lead to a bad reputation of a given property and, subsequently, a lower income from a less desirable property.
“The three key benefits of tenant screening are protecting property, people, and reputation. And every landlord and property manager, especially those first-time landlords with vacation properties, should conduct a thorough tenant check of all their applicants.”
TenantScreeningUSA.com is a third-party background screening company that provides in-depth tenant checks to landlords and property managers for all sizes and types of rental complexes. From the single-unit to the large community, TenantScreeningUSA.com has the background screening reports and online tenant screening system to greatly assist any landlord or property manager properly vet prospective tenants.
