Screening your Tenants is a key for good Property Managment

24
Feb

 

According to a study from Trans Union there is a correlation between Tennants with high eviction rates and tenants that have rents in collections,

The study has concluded that  a tenant that has a prior eviction is three times as likely to have addition evictions and collection problems

About 21 percent of tenants that were evicted from their current property had a prior eviction.

 

Eviction losses average $3,500 per unit, which includes court costs, lost revenue and other operating expenses.”

The analysis also shows that 13.2 percent of evicted residents have prior collection records, compared to 6.2 percent of non-evicted residents.

According to the 2013 Top Collection Markets Survey commissioned by ACA International, property management ranks eighth among markets that bring in new business for agencies after credit cards and retail, seventh, and student loans, sixth.

New business in property management declined by $150 million in 2013, according to the survey. The total new business in 2013 was about $97 million.

A good property manager will work with a company like TransUnion’s analysis on evictions and rental debts to help  make decisions about tenants who sign lease agreements at their properties.

Every day I speak with owner all with the same sad story about a property manager that does not screen tenants properly , or a manager that let a bad Tennant stay to long .