Can You Afford Bad Tenants? Why Professional Tenant Screening Matters
One of the biggest risks landlords face when self-managing their rental properties is choosing the wrong tenant. A bad tenant can quickly turn your investment into a liability, costing you money, time, and peace of mind.
Our recent clients learned this lesson the hard way. They rented their property to tenants who seemed perfect on paper but quickly showed signs of neglect. Within months, the tenants stopped paying rent, caused over $10,000 in damages, and delayed the eviction process, leaving the property vacant for another month.
Why did this happen? Because they didn’t screen their tenants thoroughly.
Here’s why professional tenant screening is critical:
Credit Checks: Many self-managing landlords skip important steps like running a credit check, which helps assess a tenant’s financial responsibility. Professional property managers always conduct credit checks, ensuring tenants are more likely to pay their rent on time.
Employment and Income Verification: It’s essential to verify not only that a tenant has a job but that their income can comfortably cover the rent. While self-managing landlords might check employment, we go a step further by confirming that tenants earn at least 3x the monthly rent, ensuring they can comfortably afford both the rent and any unexpected expenses.
Rental History: A professional property manager checks a tenant’s past rental experiences. Did they pay rent on time? Did they leave the property in good condition? These insights help prevent issues down the road.
The Cost of Bad Tenants:
In our clients’ case, they weren’t just left with $10,000 in property damages. They also had to deal with the legal and financial burdens of eviction, unpaid rent, and a month of vacancy.
The truth is, bad tenants can cost you far more than the price of professional property management. With a 99% tenant success rate, our thorough screening process ensures that you get reliable, responsible tenants who will treat your property with care.
Don’t take the risk. Protect your investment with proper tenant screening from experienced property managers.
The Hidden Costs of Self-Managing Your Rental Property
This post is part of our three-part series exploring the risks and challenges of self-managing rental properties. In this series, we dive into real-life examples of costly mistakes landlords face and how professional property management can help protect your investment. Be sure to check out the rest of the series:
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About Power Properties Ltd.
Founded in 1980, Power Properties has been providing hassle-free property management services to property owners, property investors and non-residents with homes in Calgary, Alberta for over 40 years. Our full-service property management includes everything from move in to move out, so you don’t have to worry about the day-to-day operations of your rental property. With a team of licensed professionals, years of experience, and award-winning service, you can rest assured that your property is in good hands.
