Archives 2023

One of the keys to success with managing a rental property is tenant screening because the quality of your screening will result in you renting to the most qualified tenants.

If you’re new to owning rental properties, or you’ve owned rentals for years, this article will offer you several tenant screening tips that you can use to screen and place the right tenants in your property.

Identify tenant needs and requirements

Before you begin screening applicants, you should first identify tenant needs and requirements. This can help you create a shortlist of ideal tenants based on their needs and requirements. For example, you can use tenant profiling to help you establish that you want to rent to a family with school-age children. By knowing exactly who you want to rent to, you can save time and reduce the chance of selecting the wrong tenant. It’s important to note that you can’t discriminate against a potential tenant based on protected class. This means that you can’t select a tenant based on their race, religion, sex, or national origin. You also can’t refuse a tenant based on their source of income, disabilities, and/or children, marital status, and/or sexual orientation.

Review applications and rent price

Once you begin to receive applications, you’ll need to review each application and rent price. You can use this as an opportunity to screen for risk. For example, if the application has a credit score of 650 or less, you can consider rejecting the application. If the application is from a source of income that is not verified, you can also consider rejecting the application. Always review the rental price. You don’t want to select a tenant that expects to pay less than the price listed on your rental application. This could be a sign that they may not stay in the property for an extended period of time. You also want to make sure that the rent price is reasonable. You don’t want to price your rental out of the market.

Check credit and background

Once you’ve narrowed down your list of applicants, you’ll want to conduct a full credit and background check on each applicant. This will help you to identify any red flags and potential issues. Always make sure to get permission from the tenant before conducting any type of background check. You may also want to consider using a tenant screening company to conduct background checks. This can help to ensure that you’re complying with fair housing laws. Make sure you also check the credit report to help you identify any red flags. Make sure to check the credit report of all adults listed on the application. You don’t want to select a tenant that has a low credit score or has had issues with their credit in the past. You also want to make sure that they have enough credit available to cover the rental payment.

Contact references

Once you’ve conducted a credit and background check, you should also contact references. This will help you to confirm that the information you’ve gathered about your tenant is accurate. Always give your tenant notice before contacting their references. This will help you to avoid any potential confusion. Always contact at least two references. You can contact the current landlord if the tenant is currently renting. You can also contact a previous landlord or employer if the tenant is not currently renting. It’s also a good idea to ask your tenant for additional references. This will help to confirm that their current references are legitimate.

Verify employment and income

You want to make sure that your tenant can afford the rental payment. This will help to protect you from a potential eviction. You also don’t want to select a tenant that might not be able to stay in the rental for an extended period of time. This will help you to avoid going through the renting process again and again. Always verify employment and income. This can help to protect you from a potential scam. You don’t want to select a tenant that isn’t employed or has a low or inconsistent income. This will increase your risk of losing money on your rental. You also want to make sure that the employment and income information is consistent with the information on the application. This can help you to avoid a false application.

Check rental history

You want to make sure that your tenant has a rental history. This will help you to avoid selecting a tenant that is new to renting. It will also help you to avoid selecting a tenant that has recently evicted from another rental property. This can be helpful for protecting you from a potential eviction. You can check rental history with a rental history report or rental verification service. This can help you to identify any issues with past rentals. Make sure to check all addresses associated with the tenant. You also want to make sure that the tenant has listed the correct information. This can help to avoid confusion.

Conduct a tenant interview

After you’ve conducted a full background check, you should conduct a tenant interview. This can help you to identify any red flags and come to a more informed decision on which tenant to select. This is also a good time to discuss expectations, terms, and conditions. Always conduct a thorough tenant interview. This will help to reveal any potential issues and help you to select the right tenant. It’s important to remain objective during the interview. Avoid sharing too much information. This can help you to avoid disclosing any sensitive information.

Run a tenant screening report

Once you’ve conducted a credit and background check, you should run a tenant screening report. You can use this report to identify any potential issues. Make sure to run a full report rather than a standard report. This will allow you to view all available information. You can also run a criminal history report to help you identify any potential issues. This will help you to avoid selecting a tenant that has a criminal record. Make sure to run a full report rather than a standard report. This will allow you to view all available information.

Take photos and document the property

Once you’ve selected a tenant, you should take photos and document the property. This will help you to record the condition of the property and any existing damages before the tenant moves in. It will also help you to quickly document any existing damages if your tenant is unable to repair them. This can help you to reduce maintenance expenses. Always document the property before your tenant moves in. This can help you to avoid any miscommunications or misunderstandings between you and your tenant. It can also help you to avoid any potential disputes with your tenant down the line.

Sign a rental agreement

Once you’ve selected a tenant, you should sign a rental agreement. This will help to protect both you and your tenant. It will also help you to set expectations and outline potential terms and conditions. Always make sure to create a standard rental agreement. This can help you to protect yourself from any potential issues. It’s also important to consider how your tenant screening process may change over time. This can help you to stay up-to-date on new services and best practices. You may also want to make changes to your tenant screening process as your rental property changes. This can help you to ensure that you’re selecting the right tenant for your property.

Contact Us

At Rent Portland Homes – Professionals, our team specializes in local property management for Beaverton and the surrounding area.

To learn more about the services we can offer you, contact us today by calling (503) 477-7788 or click here to connect with us online. 

Real estate investing is an attractive option for those looking to diversify their portfolios and build wealth regardless if you’re planning on investing in multifamily vs. single family properties. 

There are many different types of investments, including multifamily and single family properties. When deciding which type to invest in, it is important to weigh the pros and cons of each.

Multifamily properties offer advantages such as increased cash flow and potential economies of scale, while single family properties provide the opportunity to customize and renovate. Both types of properties come with their own unique set of risks and rewards, and understanding the differences between them is key to making an informed decision.

In this article, we will explore the pros and cons of investing in multifamily vs single family properties.

What is a Multifamily Property?

A multifamily property is a residential rental property that is designed to house multiple tenants. There are a number of different types of multifamily properties, including manufactured homes, townhouses, and apartment buildings. The number of tenants living in a multifamily property will vary depending on the type of property. For example, manufactured home parks are generally designed for groups of people to live together, whereas an apartment building may have only one tenant per unit. The majority of multifamily properties are either apartment buildings or townhouses. They are often referred to as “rental properties” or “rental real estate” because they generate rental income for their owners. While the majority of single family rental properties are also rented out, they are referred to as “rental properties” when they are part of a multifamily portfolio.

What is a Single Family Property?

A single family property is designed to house one family. Single family properties include detached homes, semi-detached homes, and row houses. Single family rental properties are less common than multifamily properties, but they do exist. Single family rental properties are generally large detached homes that are rented out to tenants who do not wish to live in a more urban environment. Single family properties are generally referred to as “owner-occupied” properties because the owner lives in the home. Single family properties are also referred to as “residential” properties. Residential properties are often combined with other residential properties to form larger developments, such as condominium complexes, planned unit developments (PUDs), and mixed-use developments. Residential properties are also referred to as “single family” properties.

Advantages and Disadvantages of Investing in Multifamily Properties

Greater potential for cash flow – In general, multifamily properties have higher potential for cash flow compared to single family properties. This is especially true for larger apartment buildings, where average monthly rents can be in the thousands. In smaller apartment buildings, average monthly rents may be in the hundreds, but it depends on the market and the type of unit. – Economies of scale – Multifamily properties are often easier to manage when compared to single family properties. This is especially true for larger buildings that have more than 10 units. A larger building can have one rooftop unit, a master HVAC system, and a single HOA, which can lead to greater economies of scale. – Higher rental rate per unit – Multifamily properties generally have higher rental rates per unit, which reduces the cash necessary to obtain the property. In addition, larger buildings are often easier to rent out, which can lead to quicker cash flow. – Potential tax advantages – Depending on the type of multifamily property you invest in, you might be able to deduct some of your expenses as a landlord. For example, if you own an apartment building, you might be able to deduct your mortgage interest, real estate taxes, and operating expenses. These deductions can reduce the taxes you owe each year, which is an important consideration when deciding which type of property to invest in.

Advantages and Disadvantages of Investing in Single Family Properties

Ability to customize – The single family rental property can be customized to better suit the needs of the tenants. For example, a single family home can be customized to include an accessible bathroom or space for a child’s playroom. Single family properties are also great for those who wish to rent to families with young children. – Ability to renovate – Single family properties can be renovated to increase their value. Renovations can include improving the curb appeal, installing new appliances, adding new flooring, and more. Renovations can be expensive, but they can also increase the value of the property. – Lower acquisition costs – Single family rental properties generally have lower acquisition costs when compared to multifamily properties. Single family properties are often easier to find and close on because of the smaller pool of potential buyers. In addition, single family homes are often less expensive to purchase because they do not require as much cash for the down payment.

Which Type of Property is Right for You?

Before investing in a multifamily or single family property, you should consider your long-term financial goals. If you are looking to obtain quick cash flow, then a multifamily property may be the right choice. On the other hand, if you wish to renovate and increase the value of a property, a single family rental property may be right for you. It is also important to consider your risk tolerance when deciding which type of property to invest in. While multifamily properties generally have lower acquisition costs, single family properties may have greater potential for appreciation over time. The decision on which type of property to invest in will likely depend on your specific goals and risk tolerance.

Real estate is a great way to build wealth and achieve financial freedom. The type of real estate you invest in will depend on your long-term financial goals. If you are looking to obtain quick cash flow, then a multifamily property may be the right choice. If you wish to renovate and increase the value of a property, a single family rental property may be right for you. It is important to understand the pros and cons of each type of real estate before making a decision.

To learn more about the property management services we can offer you, contact us today by calling (503) 447-7735 or click here to connect with us online.