Tenant quality is becoming a growing concern for property managers across Chicagoland, and for good reason. With the increasing challenges that renters face in today’s economy, it’s more important than ever to implement a rigorous tenant screening process. Here at High Fidelity Property Management, we’re explaining why tenant quality is a top priority for our long-term success and how we approach the process.
The Strain on Renters’ Bank Accounts
The economy is tough, that’s no secret. Many renters struggle to pay their bills on time, which ends up creating a ripple effect on the property management industry. According to a report issued by Harvard University, Between 2001 and 2022, rents surged by 21%, while renters’ wages grew by a mere 2%. Landlords end up feeling the strain when it comes to balancing tenant retention while still keeping up with competitive prices. A delicate tightrope that has become a normality within this industry nowadays. Although, there’s no need to panic. By embracing new technology and focusing on tenant reliability, property management companies can improve retention rates, reduce turnover, and create a more stable income stream for property investors.
The Importance of Rigorous Tenant Screening
Leasing teams have their work cut out for them now more than ever. Thorough screening not only ensures that the tenants can afford their rent, but also protects the property’s long-term profitability. No pressure, right!?
So, how do we do it at High Fidelity Property Management? Our leasing team starts with a pre screen of basic tenant requirement questions, before we schedule an apartment showing. If all goes well, the potential applicant tours the unit and fills out an official application. Tenant background checks, including rental history verification and credit checks, are conducted to show insights into an applicant’s financial habits. We also use Celeri, a fraud detection software that analyzes documents to pinpoint accuracy. By incorporating these steps, our leasing team can make more informed decisions and avoid the costly pitfalls associated with high-risk tenants. Over time, we continue to stay relevant, engage with new technology, and improve our processes when needed.
In addition, we’ve found sometimes an applicant could be a great fit, but needs a little extra help to seal the deal. In these cases, we offer an online guarantor called TheGuarantors, which acts in lieu of a cosigner. TheGuarantors is a firm dedicated to expanding housing opportunities for renters by improving their approval odds for rental units. At the same time, ensuring financial peace of mind for property management companies. All in all, this service provides safeguards against resident-related financial risks. It’s been a bit of a game changer for all parties involved.
Bottom Line, Don’t Skip Steps
As we all know, adapting to changing times is crucial for success in property management. Today’s city-based residents have reshaped the rental market with demands for comfortable remote work spaces, pet-friendly buildings, advanced security, and seamless online payment and communication tools. As rent prices continue to climb faster than wages, a new challenge has surfaced in securing financially stable tenants. Which is why it’s more important than ever to implement a rigorous tenant screening process. Keeping in mind, if a tenant doesn’t meet key criteria, it’s often better to wait for a more qualified candidate. By combining technology with a personal touch, property management companies can improve retention, reduce turnover, and ensure a stable income stream for investors.
At High Fidelity Property Management, we understand why tenant quality is a top priority. We offer comprehensive screening services, backed by the latest technology, to ensure that you’re attracting tenants who are financially responsible and ready to make your property their home.
If you’re looking for a property management company that puts tenant quality first, get in touch with us today. Let us help you navigate the challenges of the rental market while ensuring your property thrives.