For a real estate business owner, tenants can both be a cause and a boon. There are always bound to be model renters who pay bills on time, have valid complaints, and are generally cooperative. On the other hand, you may also get tenants who are the source of headaches.
They can be a hassle for your entire team, from late rent payments to damage to common area properties.
Partnering with Firms
Problems like this are why an efficient, streamlined tenant onboarding system is necessary for every real estate business. Such a system is beneficial if you are a small business owner. By partnering with tech consulting firms, you can access software that will maximize your workflow.
Technology in software like Yardi can help you run background checks on tenant applicants. This screening process is vital because it lets you weed out people who have a terrible history with past real estate businesses. A review system like this enables you to go through tenants' references and income to minimize future evictions.
But tenant onboarding is not limited to just this application screening. As a property manager, it is your responsibility to help the new people settle in. This role implies tasks like providing concise information during lease signing and following up on their status after moving in.
Why Should Tenant Onboarding be Efficient?
Every real estate business knows that client referrals are crucial to making it big. A customer who is satisfied with your company is sure to use your service again. They are also highly likely to recommend you to friends and family.
Research shows that over a whopping 82% of all real estate transactions are referrals. This data highlights the importance of satisfying the client in a real estate business. Without exaggeration, one can say that it could make or break your business.
The onboarding process is crucial because it is your client's introduction to your business. They may have arrived at a friend's recommendation and may have expectations of you.
Therefore, the onboarding process sets the tone for all your future interactions with the tenant. It is crucial to start things on a warm note as a landlord. It is your responsibility to be both professional and friendly. Being aware of the importance of this practice, you can proceed onto the steps required of the onboarding process, including:
Tenant Application Review
Some people may seem to be perfect tenants, but it does not hurt to be extra careful as a property business owner. It is your responsibility to keep the neighborhood as safe as possible, and this means reviewing all relevant information of your potential client before signing the lease.
Why Should You Opt for an Onboarding Software?
Going through the background data of the applicants is exhausting work. If you are in charge of multiple properties, you know difficult it is to manage them. Moreover, your team may not be savants of technology. Such a situation means crucial information about the client's history goes unearthed.
Features
Partnering with a tech firm can help solve this problem. With such a collaboration, you can access software like Yardi ScreenWorks Pro, which uses Artificial Intelligence-based technology to execute tasks. The technology can run background checks on potential clients to review details like income, credit score, and references.
All property managers know how tedious and expensive evictions can be. Installing software like Yardi and MRI can help prevent such hassles so that you admit only the lowest risk tenants. It comes equipped with customizable filters that allow you to choose your client by specific categories.
Besides this, with Yardi ScreenWorks, you get access to many rental data. You can use this information to verify the real estate history of your tenant. An efficient partner will help you optimize your tenant onboarding process by ensuring the following details are in order.
A history of debt, mortgage information, credit scores within a moderate range
References from old landlords and real estate businesses
Payment history
Identity verification including Social Security Number, Driving License, and other govt-issued identification
Insurance details are crucial and should always be verified before the onboarding process.
Employment details including past work history with paycheck stubs, employer data, and more
Personal information like full name, contact, and current housing details.
A pro tip would be to inquire about pets. Your building may be a no pet zone and this minute detail cause friction between you and the tenant later on.
Lease Details
A lease should cover all loopholes regarding the tenant's stay. It should also protect the rights of the tenant and landlord. The issue of practices like standard area management fees often causes disputes later on in the business relationship.
Your contract should be concise about which responsibilities you and the tenants have to avoid future misunderstandings. Typically, leases contain information like
Complete legal names
Date of lease
Rent details include but are not limited to yearly maintenance fees, the expense for the use of common amenities, rent values, security deposit information, and more.
Fees for late rent payment, penalties on property damage,
Details on pets
Leases are usually long and difficult to read because they include the factors mentioned above. It also takes time to add these clauses to the contract. But a lease abstraction software can help you with this. It distills all the crucial points of the agreement and produces it in writing, which is straightforward.
Meeting Up with Clients
Personally, meeting up with your client can be a considerable advantage when signing leases. Technology makes the whole process smoother by minimizing the need for human contact. But there is a limit to what software can do. Your tenant is sure to appreciate a friendly face-to-face welcome.
Advantages
This visit gives you a chance to show them around the property. At the same time, you also get the opportunity to talk about details like rent and security deposit. Your client can also use this opportunity to clarify any points in the contract.
For the best possible first impression, have something to welcome your new tenants. A bouquet or a bottle of wine works excellently. Also offering them information on reliable moving services will be well received. Also, any professional knows to keep track of the number of keys they hand to tenants. Make sure they know not to duplicate them as it could cause security problems later.
Tenant Onboarding Worries? Talk to the Assetsoft Team Today!
We can make tenant onboarding a simple affair. We help you choose the right property management systems, and find the right tenant onboarding solution. Talk to our team to know more about how we can help make tenant onboarding a simple affair for you.