Rental markets have always been boom or bust, and recent years have been nothing but boom, especially in large urban centers such as San Francisco, Los Angeles, and Seattle. As the rental markets continue to heat up landlords are enjoying greater success.
From REBusinessonline.com (May 02, 17):
Six in 10 apartment landlords say it is more profitable and attractive to be a landlord than it was five years ago, according to a new survey from TransUnion SmartMove, a tenant screening service for owners. The survey was conducted in March 2017 and included responses from 689 landlords across the country.
At the close of the first quarter of 2017, property owners indicated it was easier to find qualified renters and that resident turnover had declined compared with the same time last year. (1)
And the key is qualified renters.
What is a qualified renter? Adam Almeida, President and CEO of TenantScreeningUSA.com explains: “A qualified renter is one that can afford a property, shows the wherewithal to pay rent on time, and has had a successful rental career. No late payments, no evictions, no apartment jumping. A qualified candidate can also be that renter that has a clear record, great references and positive referrals.”
Turning a qualified candidate into a long-term renter can be profitable for landlords, but the very reason qualified renters are paying higher rent is the same reason they may not be long term.
Almeida explains: “Increasingly the younger generation is more transient. They tend to move around more and not spend money on a big investment such as a house or a car. This would explain the increasing popularity of living in an urban city, close to work and entertainment and not restrictive on movement due to requiring a car.”
However, the near term remains bright for landlords.
Almeida adds: “A thorough tenant background check is critical to find the qualified candidate for a rental property. Landlords and property managers should review credit history, criminal background records, and, especially, eviction reports.”
Credit history is important to verify a candidate’s ability to fulfill the rental obligation. Certainly a consumer credit report will provide the data a landlord needs to make a well informed decision, just as criminal records and eviction reports will further enhance the process.
Almeida adds: “It should be noted that some segments of the rental community now ban the question of criminal records as part of the application process.”
In 2016 the Department of Housing and Urban Development as supported by the Fair Housing Act initiated certain bans of criminal history in public housing.
Almeida adds: “Ultimately the search of the qualified candidate is critical to the long-term health and fiscal viability of a property and one that must be conducted in a fair, legal, and lawful manner. Property managers and landlords must work with well-qualified third-party tenant screening companies in order to remain fully compliant with all applicable law.”
TenantScreeningUSA.com is a third-party tenant screening company with highly trained investigators well versed in the legal and lawful use of criminal history reports, and all public record reports, as part of a tenant check.
Notes:
(1) rebusinessonline.com/low-turnover-higher-rental-prices-lead-to-attractive-apartment-market-for-landlords/
