Archive for: August 2015
There is a large increase of investors looking to gain a higher return on their investment in the Florida real estate market. As property prices had risen exponentially in the past 4 years, the renter market had grown in its demand. Now units are being evaluated as an investment, managing their margins, taxes, and expenses. Property management companies tend to understand the core value of a “good quality tenant”, this makes remark in the importance of a smart screening. Analyzing important indicators such as credit, cash flow, previous landlord referral, work verification.
“Empty apartments make no money at all,” says Larson. “It’s better to rent the apartment at some price than to have it sitting empty, but you have to weigh that against the risk, and the possibility that demand will increase and the unit could be rented for more. A good screening solution should help you determine scientifically how much to relax standards instead of leaving your people to use their hunches.”
There is a key element of “smart screening” choosing the right tenant will make the management agile and a higher ROI. Renters tend to misinterpret that the property the rent and live in is not theirs so they upkeep maintenance and order. Good quality tenants tend to appreciate the property as their own, and seem responsive and problem solvers.