You've made the right upgrades for your investment properties in Detroit. Now it's time to find the right renters and collect the rent!
Choosing quality residents is less about placing the renters you "want" and more about following a screening process that leads you to the right people to live in your rentals. Real estate investors must be careful about how they conduct background research and select residents. Using personal preferences or criteria in the wrong way can land investors in a lawsuit for discriminatory practices.
However, skipping the screening process can place bad residents in your properties. What's the right approach to screening renters? Own It Detroit lays it out for you here!
We've talked about staying compliant with Detroit city requirements to maintain the legal operation of your rental property business—but compliance doesn't stop there!
Real estate investors must also follow regulations when screening renters and handling private, sensitive information. Your background check includes information accessible only with a potential renter's permission. Protecting that information is critical to keep renters safe and avoid violations of the law.
If you're not sure how to follow the FCRA (Federal Credit Reporting Act) or Fair Housing regulations, partner with a property manager to conduct screening services for your investment properties in Detroit. The FCRA applies to how you handle and store applicant information when conducting these essential aspects of the screening process:
- Credit check
- Criminal history
- Employment and income verification
- Prior rental history
Mishandling private data is a problem for potential renters and rental property owners. Make sure you understand the law and work with a property manager that is FCRA compliant.
Never Discriminate (Ever)
Not understanding anti-discrimination laws can impact your ability to operate legal rental properties in Detroit. Real estate investors must never participate in discriminatory practices, even if unintentionally.
When selecting renters, property owners must follow Fair Housing laws to conduct a fair process—leaving personal preference out of the decision-making process. Real estate investors can never choose (or deny) a renter based on:
- National origin
- Familial Status
Applying any of these criteria when choosing your next renter can lead to a lawsuit and shutting down the legal operation of your investment properties in Detroit.
Not Knowing Is Not Okay
Rental property owners must do the due diligence to understand Fair Housing requirements and comply. The right property manager makes it easy to follow the laws while also placing quality residents in your properties!
We stay up-to-date on all laws and help real estate investors find the best renters (legally). Our process includes:
- Developing legal criteria before the screening process begins
- Applying the same criteria fairly for every applicant
- Recognizing the red flags of a potentially bad resident
- Choosing a renter that's the best fit for your investment properties in Detroit
The best property manager knows that the only way to select quality renters and protect your investments is to stay informed and follow the laws. With a thorough screening process in place, rental property owners can trust that they have the best renters in their properties to maximize income and reduce turnover!
Quality Renters Are Critical For Long-Term Success
We mentioned that picking your next renter can't be about what you "want"—and that's mostly true. We know that real estate investors in Detroit "want" the best renters to generate more income and minimize risks to their properties!
Repeatedly choosing high-quality residents is one of the most critical aspects of success when investing in real estate. You need residents who pay the rent on time, take excellent care of your property, and renew their lease. When quality residents stay for more than one lease term, investors make more money and maximize ROIs!
Bad renters don't pay the rent, cause property damage (and other problems), and often abandon a rental without notice. Allowing these residents into your properties creates expensive problems and income loss.
The best Detroit property managers do it all for you. We follow the law, select high-quality residents, and encourage renewals to boost your long-term success!
The Best Renters Are Ready for Your Investment Properties In Detroit
Whether you have one property or 100 investment properties in Detroit, the best renters are waiting for a chance to live in your rentals. Finding them requires a thorough screening process that follows the law, recognizes quality applicants, and highlights red flags for applicants to avoid.
It's easy to pick the wrong renters or make a mistake (and violate the law) without the right experience. When you invest in Detroit, partner with a best-in-class property manager to screen and select residents for your properties. Own It Detroit understands (and follows) the laws to make sure the best residents make it into your properties—and feel at home throughout their lease term.
Contact us for a free consultation with one of our seasoned real estate investment and property management professionals!