When you're a property owner in Phoenix, you have several options for turning your property into an investment. Phoenix is a city that gets lots of sunshine and warm weather, making it a hot commodity for vacations and short-term rentals.
If you're going to rent your property out to short-term tenants, you must still use discretion when screening them. This article will teach you all about screening tenants so that you can avoid costly mistakes.
Know Your Red Flags
Before spending any money or time screening tenants, make sure you know which red flags you're looking for. It's up to you which things are deal breakers and which you leave more wiggle room for.
Short-term rentals are less risky, but you still need to make sure that you're renting to honest people who will take care of the property and pay what they owe. Some red flags that property owners look out for include bankruptcies, rental evictions, abysmal credit, criminal records, and lack of income.
Come up with criteria for tenant screening so that you know which people you'll rent to and which you won't.
Use the Resources at Your Disposal
The best way to screen tenants is by hiring the help of short-term management professionals that can run the background checks for you. This is also the more cost-effective solution. You're paying a fee for their service rather than purchasing individual background checks every time you screen a tenant.
Property managers also tend to have access to the best databases available and will find pertinent information that will help you make a decision about a short-term tenant. This makes your life easier, letting you collect rent from the investment property without all of the red tape.
Ask the Right Questions
You can also include an application process for your short-term rental. This will add some context to the information that you find out in background checks.
Ask prospective tenants about their annual income, income source, move-in date, and whether they have pets or smoke. It may also be worthwhile to ask about evictions, bankruptcy filings, or criminal records.
Though the background check will turn up that information anyway, you can gauge whether the applicant tells you the truth or not.
Require proof of income, which could include multiple pay stubs, months of bank statements, or income tax returns. Do your due diligence upfront so that you know you either have a worthy tenant or need to keep looking.
Get Help With Screening Tenants
The work that you do when screening tenants is worth the money and upfront effort. It can save you some trouble in the long run and allows you to find prospective tenants that can help you grow your income stream.
Working with a professional service will help you find the right fit so that you're taking the best care of your property. Managers can also help you collect rent, market the property, and a host of other services.
PMI Real Estate Services can help you out with any of your investment property needs. Reach out to us via our site, or pick up the phone and dial 480.641.9163.