In Mississippi, the average home costs just under $172,000. While this isn't as high as many other areas of the country, it can still be difficult for many people to buy property this expensive.
For this reason, the state still has plenty of renters. Finding the right tenants as a landlord is crucial, but not everybody understands if they should outsource tenant screening.
We've put together a brief guide that outlines the pros and cons of hiring someone to handle tenant screening. Let's explore what you should know.
The Pros
One of the most notable benefits of outsourcing is the time and money you'll save. Tenant screening can be a costly process for those unfamiliar with how it works.
Handling it on your own also requires time and energy better spent elsewhere. Outsourcing also allows you to distance yourself from making decisions.
For example, it's not uncommon for landlords to grow attached to renters they interview. Denying their application can be unpleasant in these cases.
Outsourcing tenant screening ensures you only meet individuals who are approved. Property management companies also understand common red flags to watch out for. The average landlord will likely overlook these, putting them at risk of renting to someone dangerous, messy, etc.
The Cons
Outsourcing doesn't come without its drawbacks. As you might assume, the primary one to consider is the money you pay.
Not everyone has the financial capability to outsource. Outsourcing also has the potential of hiring a disreputable property management company.
Inexperienced or unprofessional property managers could harm your reputation as a landlord and perpetuate vacancies. The good news is that you can avoid this situation by thoroughly researching who you work with.
Which Is Best?
The answer will depend on your personal needs. If money is tight and you can't afford additional expenses, handling tenant screening on your own might be best.
This is a common scenario for those who purchase their first rental property. People who need extra convenience or want to save time should consider outsourcing. You can reinvest the time you save into other areas of your life, such as maintaining your rental properties or looking for new ones.
Finding a Professional
When searching for a professional, always look at their past reputation. This provides insight into the experience you'll get when working with them. Ask about their compensation, as well.
Property managers often take a percentage of rental income as payment. It's best to have insight into this number before moving forward. Are they transparent about how they conduct a tenant background check?
Never hire someone who doesn't elaborate on the methods they use. With enough due diligence, you can find the ideal choice and make your life as a landlord much easier.
Don't Overlook Tenant Screening
Although tenant screening might seem difficult at first, working with a professional can streamline this obligation. Just make sure you find a reputable company.
Get in touch with us at PMI Biloxi today to handle your tenant screening needs. Our professional team is ready to connect you with the best solutions.
