It’s Time To Review Tenant Screening Criteria For Your Orlando Property
In a recent survey by Zillow Research, half of the real estate and economic experts who responded said they expected another recession to begin in 2020, while 35 percent said they believed a recession would likely begin in 2021. Unlike the Great Recession that started in late 2007, this predicted recession will probably see factors other than the housing market as its primary cause. Because of additional regulation in the mortgage industry since the Great Recession, today’s homeowners and investment property owners are generally in a better position with more equity and more solid ability to repay the mortgages on the property they own. If you own residential rental property, now is an ideal time to review your tenant screening criteria and make adjustments that will help you maximize tenancy and keep your income coming in steadily, even if the future does hold a recession.
Why Now Is The Best Time To Adjust Your Policies
Establishing and applying a consistent set of criteria by which you judge applications for each of your income properties is the best possible defense against future discrimination claims. By looking ahead, you can make adjustments to your tenant screening criteria now and establish a consistent pattern of applying them before a recession hits. This also means that you’ll start now to fill your vacancies with tenants who are most likely to be able to continue renting from you through an economic downturn. Consider criteria like the length of employment, in addition to income and credit score. It’s also a good time to establish policies covering when and how you might consider renting to tenants who don’t meet all of your primary criteria. For example, might you consider renting to a tenant whose income or credit score don’t meet your desired minimum if they provide a co-signer or a larger deposit, or pay increased rent? If so, be as specific as possible: If your minimum desired FICO score is 670, might you consider renting to a tenant with a FICO score of 640, if they gave a larger deposit? How much? Would you consider renting to a 600 FICO score if they had a cosigner with a 740+ FICO score?
Get Professional Help With Tenant Screening In Orlando
Tenant screening can be a complicated issue because of many federal, state, and local laws that may apply. When you work with the experts at Belmont Management Group, you’ll get sound advice on compliant tenant screening, and money-saving help with maintenance, marketing, and every other aspect of managing your investment property. Call or contact us online for a consultation and we’ll help you make a sound plan for today and the future.
Note: Please keep in mind that this is an overview of the important points, but by no means does it constitute a prediction of the economy, nor of the impacts it may have on the residential rental market.
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