How Rental Property Owners Can Successfully Screen Tenants in South Florida’s Brickell Miami Condos
Rental property owners (landlord) spend significant time and money to find the best properties to lease out to tenants. Some investors rely on these assets for most of their income. It is, therefore, crucial for them to carefully select the tenants who will gain full access to their property upon rental. This is especially true as more buyers seek out luxury properties such as South Florida’s Brickell Miami Condos. Screening tenants can be an effective way for landlords to prevent issues during lease periods and make renting out properties a pleasant experience for all parties involved.
Why Screening Tenants Is Important for Easy Rental Property Management
You’re More Likely to Receive Regular, On-Time Rent Payments
Rental properties in Miami can provide investors with a steady flow of income even during times of economic uncertainty. This is especially true for individual investors who don’t have a vast portfolio of assets—a single, high-performance asset can sometimes offset the losses experienced by other assets. In the United States, 67% of rental property owners rent out one or two units. Tenants who fail to pay rent on time can create significant issues for landlords relying on rental income as their only source of income.
Screening Tenants Can Help Prevent Evictions
Once a lease is signed for South Florida’s Brickell Miami condos, landlords and tenants must abide by the terms of the contract for the period of the lease. Even if you do have legal grounds for eviction, such as a tenant failing to pay rent or causing significant property damage, it can be difficult to evict tenants. For example, in California, landlords must provide tenants 30 days’ notice to move out, and 60 days if the tenant has lived there for more than a year. Such regulations can make it challenging for landlords to quickly move on from problematic tenants. This also makes rental properties in Miami an excellent investment. Landlords in Florida can give renters 3 days to pay their rent or be evicted when rent is delayed by 3 or more days. When lease terms are violated, landlords can demand that their tenants resolve the issue or vacate the property within 7 days.
Effective Screening Can Minimize the Chance of Property Damage
Landlords usually invest large amounts of money in their South Florida Brickell Miami condos, and most experienced landlords have cash reserved to deal with unexpected repairs and maintenance. These costs can rise significantly if the cost of property damage caused by tenants exceeds the amount of the security deposit, or is not covered by insurance. Screening tenants can help rental property owners quickly identify tenants who have a history of causing damage or delaying rent payments.
5 Metrics Landlords Should Use to Screen Tenants
So how can landlords decide which tenants are a good investment for their South Florida’s Brickell Miami condos? Here are five metrics to consider:
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Rental History
The first and easiest way for landlords to weed out potentially problematic tenants is to assess their rental history. Renters in Miami are transitional residents, and how they treated their past rental units can give landlords a clear indication of how they are likely to behave in their new home. Rental property owners can request additional information about the tenant from past landlords who can act as character references for the tenant.
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Income and Professional History
A basic requirement for tenants renting a property is to pay rent on time. While most residents of South Florida’s Brickell Miami condos want to do so, the nature of their job or inconsistent income can prevent them. Many renters are affected by economic uncertainty and it’s in landlords’ best interest to find tenants who can prove financial stability. While rent has increased significantly in recent years, renter incomes seem to be keeping pace. The Brickell area is home to a wide variety of luxury homes that attract high earners. Requesting payment slips or employment information can help landlords find renters who can keep up with increases in rent without many issues.
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Credit Score
An easy way to assess renters’ financial trustworthiness is through tenant credit reports. Credit reports can inform landlords if a prospective tenant has outstanding debt so they can assess their ability to meet their obligations. Any tax liens, past bankruptcies, and outstanding loan payments are indicated in comprehensive credit reports that landlords can use to weed out financially irresponsible tenants. Typically, landlords may want to avoid renting to individuals with a score of 580 or less.
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Criminal Record
While proof of past criminal behavior is not necessarily an indicator of future poor behavior, landlords should be aware of any crimes their tenant committed in the past. Landlords renting to tenants with criminal histories can protect themselves by looking for more comprehensive insurance or adding terms in the lease that nullify the agreement in the case of future criminal behavior.
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Fit With Rental Policies
Every landlord for South Florida’s Brickell Miami condos has guidelines and preferences for how a renter is expected to treat their property. Specific rental policies and a quick evaluation of tenant profiles can save landlords time and energy dealing with wholly avoidable issues such as pet or smoke odor. Rental property owners who do not plan to offer pet-friendly units can put specific rules in place for tenants who smoke or own pets. Landlords can also minimize risk by ensuring that tenants vaccinate pets and purchase renters’ insurance to protect their property.
How Technology Can Simplify Tenant Screening Processes
These criteria for screening tenants in South Florida’s Brickell Miami condos can sometimes be overwhelming for new landlords or investors with large property portfolios. Tenant screening, when done individually and manually, can be costly and cumbersome. Specialized tenant services can help landlords save time and energy while ensuring that each tenant is screened using a comprehensive and reliable framework.
Modern software has made it extremely easy for landlords to find tenant screening services they can trust. Technology has also made it convenient for landlords to consolidate all the information related to each prospective candidate for each unit on a single platform. Each process that is applied using a digital solution can also easily be scaled across multiple properties in different locations and with different needs.
Author Bio:
Mike Bang is Head of Growth at Azibo, the one-stop shop financial services platform for rental properties, providing a world-class platform for rent collection, banking, lending, insurance and more.
