Tenant Screening Program: Fill & Download for Free

Great question! Here are some pros and cons of hiring an agent to manage your rental property:PROS:Better Technology ResourcesMany agents have access to technologies that make the investment safer, easier, and more profitable for the landlord. Examples include high-tech lock boxes to contain keys, software programs for pricing, invoicing, and tenant screening. The use of this technology results in greater convenience for everyone, including the real estate investor and tenants, which further leads to a higher return on the investment.Better Marketing and AdvertisingMany agents offer advertising and marketing services using landing pages, social media, and listings on major rental websites. Therefore, you won’t need to spend time and money on marketing your rental property yourself.Improved Service and Response TimeFor landlords who own rentals outside their local area, or own multiple rental properties, having a flexible schedule for attending to tenants and the investment property’s needs can be a hassle. In this situation, hiring an agent is a must.Agencies provide real estate investors with assistance and prompt service to tenants. They can also perform more frequent site visits; leaving investment properties unattended can cause landlords tens of thousands of dollars in damage. On the other hand, an agent will most likely notice and fix issues in short order.Read this to find out Are You Ready for Owning and Managing Multiple Investment Properties?Reduced RiskAgencies can go a long way toward reducing risk, especially financial risks. They ensure contracts are well-written and that the rental agreement releases landlords from some liabilities, while still gives them the power to pursue a tenant for any damages.Take Care of Tenant ScreeningFinding the right tenant for your rental can be a very long and frustrating process for a landlord. Agents, however, allow landlords to put their worries aside as they develop a process for tenant screening that to find the best tenants and eliminates bad/risky ones who might damage the investment property.Keep You in CheckAgents are up-to-date on state and federal rules and regulations regarding landlord-tenant rights and responsibilities. This knowledge will help in ensuring you won’t unknowingly violate any of these laws which could put your investment property and finances at risk.CONS:Affects your Profit MarginThe main reason many enter the real estate investing business is to make money through rent. Hiring an agency to manage the property definitely come at a price, which means landlords have to think about their return on investments and how they’re going to pay off mortgage payments.Less Control / ExperienceGiving an agent the full control on the rental prevents landlords from gaining knowledge and experience in the real estate business. This leaves them feeling lost in the market simple because you can’t understand something that you have no experience with.Your Property Means More to YouYou, as a real estate investor, without a doubt, care more about improving you rental property more than any agent ever would. You can find the best agents, but they have other clients and there will always be things you could have done better yourself.As you can see, the pros ultimately outweigh the cons. Yet the decision is still up to you! Make sure you check out Mashvisor for more information and real estate tips to ensure you make the best investing decisions and find the best real estate properties in the U.S. housing market.

Most landlords who use tenant screening programs, are seeing your FICO scores, your standard credit reports, as well as your rental history (evictions, propery damage, etc). There are rental credit bureaus which provide this information. Some are services offered by the major credit bureaus, while others are independent.

I have been a landlord, real estate investor, licensed real estate agent, and licensed builder. I have also done a significant amount of stock investing and options trading.After 12 years of owning, remodeling and maintaining properties and renting them, I realized that it is a very time consuming process. Without a doubt, there is money to be made in real estate. Your primary residence, while it should be investment grade, should not be purchased primarily for resale purposes. You need your home to be a place that you can relax from a hard day’s work and recharge for the next day, raise a family and have privacy. Most primary residences remove more money from the owner’s pocket than they put in….think property taxes, maintenance, mortgage interest and principle, insurance, lawn maintenance, security. Nobody is going to pay you to live in your home. Over time, my experience that home ownership beats renting by a long shot.On the other hand, properties that you own to rent can be lucrative or they can be like a mirage where just when it seems like you are going to make some money, something happens to change that. Your tenant loses a job, an expensive repair is necessary, taxes are due or your tenant damages the property and is not solvent enough to make it good. Your court judgment has value only according to the tenant’s integrity. Specific laws need to be followed regarding landlord-tenant disputes, evictions, etc. The law makes it time consuming and costly to do an eviction properly. In order to be successful, you need to become an expert in the legalities of being a landlord. This can be achieved through diligent study of your state’s landlord tenant law. The key thing to understand about residential real estate is that the landlord is bound to the tenant’s ability to pay on time. Tenant screening is of prime importance and the process must be thorough.Stock investing can be much less time consuming because I can do it from the comfort of home. I don’t need to drive from property to property to do maintenance, check on condition, etc. Property managers are profit driven just like landlords. Using a property manager could save time but it will typically cost 7% to 10% of your gross rent plus any labor and materials required for repairs. You will be paying for labor and materials at a higher rate than you could obtain them on your own. This needs to be factored into the landlord business plan if you use a property manager. Most municipalities require periodic inspections of rental properties. The landlord pays approximately $250 per year in my area for this inspection, whether the municipality actually inspects the property or not. If repairs are noted, some localities require that the repairs be performed by a licensed contractor in order to obtain a certificate of occupancy. Thus you may need to be licensed if you plan to perform your own repairs.To answer the question, many people are drawn to the perceived glamour and hype of real estate investing. Infomercials and so-called reality TV programs may be responsible for this perception. Realize that there are a lot of scams. Most real estate get-rich-quick programs attempt to make themselves rich by selling programs to eager investors. Realize that there is nothing that these programs can teach that you can’t learn on your own by diligent study. Most people will have an urge to try their hand at real estate. I say learn about it and try it on a small scale before ramping up. This is the only way you will actually know whether you enjoy it or whether it is your ticket to wealth building.One must factor in the time and effort required to implement any investment strategy. There is a learning curve to real estate and there is a learning curve to stock investing. As an investor, you will be more successful when you have more time to think and plan. Stock investing affords me more time for the type of strategic thinking necessary to maximize my investments.My experience is that once the investor comes up to speed and understands the fundamentals, stock investing is much more lucrative and much less labor intensive than residential real estate rentals or rehabs. High end commercial real estate has the potential to be very lucrative but the cost of entry is beyond the means of most beginners.