They say that rental properties are an excellent way to generate passive income. It's undoubtedly a great way to earn income, considering around 35% of U.S. households are renters.
However, renting out properties doesn't always generate 100% passive income. After all, passive income means revenue that requires negligible effort to acquire.
And if you perform tenant screening yourself, you can expect it to be far from effortless.
That makes outsourcing this process for your Atlanta properties a good idea. We've listed the whys and benefits of doing so in this guide, so please read on.
Compliance With Tenant Screening Laws
One such law is the Georgia Fair Housing Act. It prohibits landlords from committing discriminatory housing-related practices.
This law makes it illegal for landlords to base their rental decisions on a tenant's:
- Race, color, or national origin
- Familial status
For instance, it's unlawful for landlords to refuse to rent a house based on those factors. They cannot offer different terms, conditions, or perks for certain people, either. If they do, they can become the subject of lawsuits.
Since you don't want to get sued, you must know and follow all the laws when screening tenants.
Or, you can hire an experienced tenant screening service to reduce your risks considerably. They understand and abide by all federal, state, and local laws and screen tenants fairly.
Comprehensive Tenant Background Check Procedures
While you must abide by all tenant laws, you must be just as careful in choosing who to rent out to. Otherwise, you may get a tenant who is highly likely to do something that would force you to evict them.
To find quality renters, you must ensure your screening process includes the following:
- Tenant credit check
- Employment history check
- Eviction history check
- Criminal background check
It's advisable to perform all those background checks on each tenant. They can give valuable insights into renter behaviors and characteristics. However, they're time-consuming, so consider delegating them to professionals.
Accurate Screening Backed With Guarantees
On average, tenant screening costs between $40 and $59, which applicants often shoulder. Unfortunately, these reports aren't always accurate.
Inaccurate reports can lead to you missing out on an otherwise excellent tenant. Or, they may mislead you into believing an applicant has a good credit score when, in reality, they don't. They may even be likely to miss payments.
Professional tenant screening services can reduce those risks as they use state-of-the-art technology. These tools provide them with accurate reports. They even back their services up with peace of mind guarantees.
Boost Rental Profits by Outsourcing Tenant Screening
By outsourcing tenant screening to experts, you can be one step closer to earning passive rental income. At the same time, you can comply with housing laws and find excellent tenants.
PMI Georgia can help you achieve all that and more. We're a locally- and family-owned business that's been around since 2004. We're also a proud member of PMI, a property management company managing assets worth over $5 billion.
So, speak with our team today. We'll happily tell you how we can help you earn more with your Atlanta rental properties!