Recession on the Rise? Your Tenant Screening Process Can Save Your Property Management Company
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While the leasing landscape has gone through quite a kaleidoscope of alterations recently, with recession rumors on the rise, integrating forward-thinking tech into your tenant screening process matters more than ever. Economic changes from rent pauses to halting evictions means property managers need to prioritize solutions that put the right, properly-vetted renters directly into vacant units for long stretches.
Recent census data shows renters are moving less and less; down from 30 percent annual moves in 2005 to 2006 to 17 percent in 2020 to 2021. And when it comes to recession uncertainties, you don’t want turbulent tenants taking up space year after year that could be rented to high-quality applicants who won’t play with your financial future.
When housing inventory is up 3 percent year-over-year, refinances have plummeted, and existing home sales are down 15 percent from 2021, as the National Association of REALTORS (NAR) found, property managers must seek offensive, protective measures. From tech tools to partners who help in tough times, here are some proactive tenant screening strategies to pursue right now.
1) Ahead-of-the-Curve Tenant Screening for Economic Uncertainty
Being one step ahead in a potential recession means catching tenant issues before they happen with proper screening. Financial frustrations affecting your property management company can originate from onboarding tenants who were never a fit for your vacant units. Unreliable and cost-heavy screening processes not only create extra back-and-forth, but lead to expensive fraud, evictions, and unpaid rent.
Proactive property managers seek innovative tech solutions that stabilize their renter outlook with pre-qualification filters plus a mix of human and machine intelligence to quickly sideswipe problematic applicants. Verifying vital info like identity, residency, employment, and income as well as credit, background, and eviction histories are key to the screening apps they choose.
In order to stay proactive when revenue ranges flop up and down, it’s imperative to rent to the right, select tenants through filtering processes bolstered by leading-edge tech to avoid future issues.
2) Tech-Driven Processes and Systems that Return Your Money and Time
If you want your tenant screening to jump ahead of property problems in tough times, you need to set up systems and processes that rely on the right tech, right now. This helps you save time and money through operational efficiencies while eliminating non-ideal tenants.
The state-of-the-art tech and app you choose should help you screen applicants 10 times faster and detect fraud 10 times quicker than traditional methods so you can increase revenue. Verifications through secure connections to bank accounts and Selfie AI ensure you won’t have fakes dipping out on rent or making evictions near impossible. And when you find the right tenants, your tech should switch gears and swiftly move them through application to signed lease to collected security deposit within one platform.
Instead of putting wasted effort and cash into outdated processes and systems, proper tech allows you to get back to marketing vacancies and filling up your property portfolio. With rental rates rising 26 percent in the last two years, according to Realtor.com data, you want to screen for terrific tenants fast so you can return to needle-moving activities. It’s about the ability to work on growing your business for success rather than working in your business chasing rent checks and eviction notices.
With economic changes in flux, save your property management company by using tech to overhaul your tenant screening processes. Better screening through implementing tech-strong processes and systems means cutting wasted time and money down the line.
3) Offensive (Not Defensive) Methods for Rising Renting Opportunities
As the median home price builds to $404,000 states NAR, it’s becoming more likely that renting will rise. Property managers who don’t want to be caught on defense when rental applications grow need to take the opportunity to seek screening strategies to prevent hurdles way before move-in.
In order to sidestep sly fraudsters, the most irritating of property issues, your tenant screening process must actively look for fake applications and identities so you eliminate the option of moving forward with a fraud. Phony incomes, employment and rental histories, and fake documentation can become a past memory if you have the right screening app.
By setting your tenant and property preferences and letting tech lighten the load, you’ll onboard tenants who can legitimately afford your rent, protecting your revenue and preventing failed payments and evictions. Tech screening tools that have property managers’ best interests and top pain points in mind effortlessly form offensive strategies for fraud, retention, revenue, and vacancies.
4) Having a Tech Partner Who Clearly Solves Tenant Screening Troubles
Although a recession now doesn’t mean a return to 2008, it’s still paramount to have the right screening partner going into potential financially-unstable times. Powerful partners help you avoid mishaps that renters may throw your way, and with the largest tenant generations, Millennials and Gen Z, collaborating with tech-savvy screening software puts you in a more attractive rental group.
Connecting with the right app now means gaining glimpses into expanding your portfolio with these high-value generations rather than shrinking back due to fears of time, money, and energy wasted when margins may be slim. Think about a partner who can help you screen faster with fewer costs, eliminate fraud and a wealth of vacancies, and can move applicants into units even when times are rough.
They should help with setting particular preferences for pre-qualification so you’re only moving forward with tenants who are ideal for your data set. They’re able to help you move potential applicants along with reminders, links, and connections to next steps. And, a tenant screening partner should be looking forward to helping you keep your renters happy through tech techniques so you can set sights on scaling with minimal unoccupied spots.
Any screening app that allows you to focus on recurring income while limiting vacancies when economic times are up-in-the-air knows how to help you run your business better through implementing tech. Some tools are even free for property managers to use so you can ensure your expenses stay low.
With the changes in the economy, if you’re proactive and move forward with a tenant screening process that’s championed with tech, you’ll be able to up your game when your competitors are sinking. And, you’ll eliminate fraud, time and money pits, tired processes, and the forever-frustrating unpaid rent and evictions.
If you want to invest in a tenant screening process that’s 10 times faster at detecting fraud and screens 10 times faster than industry average, get a demo of Sunroom today.
Sunroom is a pioneering leasing-only brokerage that revolutionizes the rental experience for property managers and investors. By seamlessly combining cutting-edge technology with the expertise of our leasing professionals, we empower our clients to efficiently rent out single-family homes and maximize their investment potential.