Assetsoft - Blog #vacancies

Busting Common Tenant Screening Myths

Mon, 16 Aug 2021 10:30:00 -0500

Renting out properties can be a tough job. From having to interview tenants, provide maintenance, manage accounts, and solve tenant problems, the list goes on. Whether it is noise complaints, damaging items, or constantly being notified about minor problems, these tenants can be a nightmare to deal with.

To avoid this, a good screening process should be implemented for all incoming tenants. This way you will be able to weed out those that have the potential to cause trouble in the future. As a landlord, a part of responsibility lies in selecting the best tenants for your property.

By doing this, you will be able to save yourself additional costs as well that come from damaged property, eviction fees, and lost rent. On average, a landlord would screen at least two applicants per vacancy before making a decision.

With so many myths about tenant screening it can be difficult to know the right from the wrong. In this post, we will be debunking some of the more common ones.

The top 4 common tenant screening myths

1. Only rent matters, nothing else

Can the tenant afford the rent on a monthly basis? Yes, this is the base criteria to determine a potential tenant and you should be running background checks, credit checks, and asking about their employment status during the initial interview.

However, there are other factors to consider that can affect both you and the other tenants in the property. It’s important that every tenant follows the rules set within your property so that problems don’t arise in the future. For this purpose, a basic screening checklist will go a long way in helping you find only the best tenants.

2. A high credit score means they are going to be a good tenant

Higher credit scores do not always translate to on-time payments, and in the same way, a low credit score does not mean that the renter will not make payments on time. Think about students, or new immigrants, or other young people who haven’t had a chance to build a good credit score yet. Don’t disqualify anyone with a low credit score. They might turn out to be a great tenant down the line

Ideally, you should request a complete credit report yourself about any potential tenants rather than allow them to hand you one of their own. While unlikely, people do use old or fake credit reports to fool landlords into renting out to them.

To automate the process of getting credit reports for each potential tenant, you can use the MRI Real Estate Software. There are on-staff investigators that will look into background and credit checks for all interviewees, saving you both time and money in the process.

3. The tenant screening cost should be covered by the property manager

Many property managers refuse to conduct tenant screenings because they believe the cost of the screening will come out of their own pockets. However, this isn’t true as landlords are able to charge the cost of the reports to the applicant as a rental application fee.

The typical application fee can cost anywhere between $25 - $75 (in the US) depending on where the property is located. Also, some points to be noted are:

Landlords cannot make a profit from these fees. They need to charge exactly the fee required for the report from the applicant.

Applicants can only be charged for screening if they are given written notice of what the screening will cover and reasons why their application could be denied.

The fee will have to be returned to the applicant if the application is rejected before the reports are run.

4. Any person without a social security number should be rejected immediately

To request a credit report, you need a social security number. However, don’t turn down an applicant if they are not able to give you one. There are people who don’t have one but still reside in the country:

Foreign employees on a work visa
Foreign students
People staying in the country for a few months

Instead, you should ask for an Individual Taxpayer Identification Number (ITIN) or any other valid form of identification which can also be used to request credit reports. Simply rejecting anyone without a social security number could lose you a good tenant.

5. It's better to have any renter rather than a vacant property

Having a small pool of applicants can be worrisome and you might be tempted to fill the vacancy as quickly as possible. However, you need to consider the implications of having a problematic tenant.

A vacancy for a few months will mean potentially lower rent payments each month, but it comes with no extra cost to you. Whereas, if you are forced to evict a bad tenant, you will have to pay over $3,000 on average (in the US).

The costs include:

Lost rent payments – The eviction process can take anywhere between 1 – 3 months to finalize. You will lose out on these payments if the tenant decides not to pay.
Complaint filing costs
Notice to the police
Miscellaneous fees
Attorney fees

Property clearance fees
Storage fees

6. Only one tenant reference is satisfactory

To gain further insight into a tenant’s background, it is recommended to contact their references. However, simply checking with one reference is not enough as the information provided cannot be 100% verified. Ideally, you should contact both their past employers and landlords to get the full picture.

The employer can tell you about the tenant’s behavior and personality at work, as well as any past problems (if any) they were involved in. The landlord can tell you about their rental payments and behavior around neighbors.

To help with this, Assetsoft can help you find automated solutions to screen all your applicants before you decide. With software such as Yardi and MRI, you can select low-risk and easy-to-manage tenants easily. To know more, talk to us today.

Top Property Listing Tips to Fill in Vacancies Faster

Mon, 09 Aug 2021 08:00:00 -0500

Want to create listings that attract more tenants? In today’s tech-savvy world, more than 50% of buyers look for homes on the internet. As a property manager, online listings are your primary way of acquainting prospects with the property. Well-created property listings improve user experience and create a better impression on prospective tenants.

If you want an excellent marketing strategy, then focusing on property listings is your first step. Follow these top tips to create attractive and informative listings that fill vacancies faster.

1. Make sure to be descriptive

When you place a listing of a property online this is the first impression that online users will have of your property. These users will stumble across your property while browsing and so will want a comprehensive description of the property including:

A summary of the interior of the property (bedrooms, bathrooms, sizes)
Amenities of the apartment/home
Nearby landmarks and convenience locations (supermarkets, hospitals)
Proximity to attractions such as coffee shops and theme parks

The more detailed the description is, the more interest you will be able to garner from each user. The user will feel like they understand more about the property and will get the “initial feel” for the place. Add on to the fact that a detailed description will cover all the common, repetitive questions that buyers will ask, your business will be able to weed out the interested buyers from the window shoppers.

Your property description is also your key to increase visibility. By SEO optimizing your listing, you can bring it to the top of search results. However, optimizing your description for search engines requires more than just writing. If you are new to this, consider hiring a professional SEO expert to get the desired results.

Or, you can also use software to research and write better listings. Yardi’s Commercial Edge lets you research property data across all commercial real estate asset types. These insights create better listings that also have increased visibility through their platforms.

2. Take advantage of visual aids

We live in a time where content is mostly visual. People are so used to visually appealing content that bad visuals are an immediate turn-off and they are highly likely to click away. To attract more users to your listings, high-quality and professional-looking photographs must be added to the listing.

Many businesses or individuals that post listings with little to no photos will find it extremely difficult to find interested tenants. If you think about it, no online user is going to look at a property listing that is just text-based and make a decision to purchase or rent that property. They require visual aids such as photos and videos in order to analyze the property.

Make sure you include as many photos as possible of the property. Everything from the bedrooms, the living area, garden, garage, attic, and so on. The more areas that you capture in these photos, the more these users are likely to show attention to the listing. If you don’t have a professional camera or don’t know how to take professional photographs, then hiring a freelance photographer would be the next best choice.

3. Make use of online advertising

Statistics show that 45% of small businesses use PPC advertising in order to grow their business. The reason for this is simple. PPC advertising brings in immediate traffic, which means a much higher chance for a lead and/or sale. Creative advertisements always catch the eye and can be crucial in converting a lead to a tenant.

Is your property close to schools? Does it have extra outdoor space? Make sure that the advertisements highlight the best features of your property.

4. Leveraging the power of social media

According to statistics, businesses that promote through social media can get up to 10% of their sales through these platforms. In order to promote via social media you can:

Use paid ads similar to PPC campaigns
Create a social media profile and gain followers by posting content
Create or join Facebook groups to list all your properties
List on property-based Facebook groups already active in your area

5. Use modern technology and software

Using software that you find online or through another company, you can do unique things such as:

Adding a video walk-through of the property
Creating a virtual tour of the property
Adding a 3D model of all the floors and amenities
Personalizing the interior using graphics and software

By including these options, you will easily be able to capture the attention of new users. Once they visit your listing, they will get a better idea of the property and get a full modern experience and feel of the property. They will be much more likely to consider a purchase/rental after this experience.

6. Work on your website

You don’t have to rely on third-party sites or pay other websites commissions to host your listings. With your own website, you can utilize the power of SEO to keep bringing in organic traffic on a monthly basis as well.

Just make sure to clean up the website and make it look modern and professional. Users will turn away if the website looks incomplete or like a spam site. You can hire a website developer to create and optimize the website for you to get the best results.

By incorporating the above tips into your business you will be able to get new, warm leads more efficiently and easily for all your property listings.

Manage properties through Assetsoft

Online listings are the first step to effective property management. For hassle-free property management, upgrade to the latest tools and technology. Assetsoft helps clients manage their properties through state-of art-software like Yardi, MRI, and Procore. We provide all property management software solutions--from tenant portals to data and analytics.

Our clients also benefit from our other services like back-office accounting, lease abstractions, and CAM reconciliations. We understand your needs and create tech strategies suitable for your business.

To upgrade your property management, reach out to Assetsoft!