Rental markets across the country can have their ups and downs however in recent history it has been a boom for landlords. In markets such as San Francisco, Los Angeles and Seattle landlords and property managers have realized huge success. A recent survey further illustrates this trend.
As rental markets heat up landlords enjoy greater success which means more profits:
From REBusinessonline.com (May 02, 17):
Six in 10 apartment landlords say it is more profitable and attractive to be a landlord than it was five years ago, according to a new survey from TransUnion SmartMove, a tenant screening service for owners. The survey was conducted in March 2017 and included responses from 689 landlords across the country.
At the close of the first quarter of 2017, property owners indicated it was easier to find qualified renters and that resident turnover had declined compared with the same time last year. rebusinessonline.com/low-turnover-higher-rental-prices-lead-to-attractive-apartment-market-for-landlords/
The key to this kind of success is finding qualified renters. Which begs the question… What is a qualified renter?
In a nutshell a qualified renter can be defined as one that can afford a property, shows the wherewithal to pay rent on time, and has had a successful rental career. No late payments, no evictions, no apartment jumping. A well-qualified candidate can also be a renter with a clear background record, great references and positive referrals. The more of these attributes that get checked off means the more qualified the potential renter is.
Turning a qualified candidate into a long-term renter can be profitable for landlords, but the very reason qualified renters are paying higher rent is the same reason they may not be long term. Cheaper apartments nearby could emerge or higher paying jobs could be cut leaving a renter unable to afford the high priced rent anymore.
It is also clear that the younger generation in the USA is more transient. They tend to move around more and not spend money on a big investment such as a house or a car. This would explain the increasing popularity of living in an urban city, close to work and entertainment and not restrictive on movement due to requiring a car.
Anyhow, it is obvious that at least for the near future rental markets remain bright for landlords.
Despite the abundance of rental candidates it is still just as important to conduct thorough tenant background checks on every candidate prior to signing a lease. Even in boom time it remains just as critical to perform due diligence prior to renting to make sure you land the most qualified candidates for a rental property. Landlords and property managers should always, at a minimum, review the credit report, criminal background report, and eviction report of their potential tenants before turning over the apartment.
Credit history is important to verify a candidate’s ability to fulfill the rental obligation. Certainly a consumer credit report will provide the data a landlord needs to make a well informed decision, just as criminal records and eviction reports will further provide a better picture of the riskiness of a potential tenant.
It should be noted that some segments of the rental community now ban the question of criminal records as part of the application process.
In 2016 the Department of Housing and Urban Development as supported by the Fair Housing Act initiated certain bans of criminal history in public housing.
At the end of the day the search for qualified candidates is critical to the long-term health and fiscal viability of a rental property. Additionally the apartment rental process needs to be conducted in a fair, legal, and lawful manner. It is strongly recommended that property managers and landlords work with a professional third-party tenant screening company to get all the background reports they need and to assist them in remaining fully compliant with all applicable laws and rules governing the background screening industry.
To learn more about current rental markets in the USA and why it is a good time to be a landlord as well as why proper tenant screening is still important read recent TenantScreeningUSA.com press release: http://tenantscreeningusa.com/uncategorized/recent-survey-show-rental-markets-remain-attractive-for-landlords/