Background Checks By A Property Manager Can Protect A Rental Property From Being Misused By Tenants
An investment property is often the most important asset that a person accumulates through their hard work over a lifetime. The last thing that they would want is to see it damaged or destroyed in any way. So it is very important that the property is maintained in the right manner, not only by the landlord but also by the tenants.
Since these properties are put out on rental, it is imperative that every landlord chooses the right tenant in order to ensure that there is no misuse of the property. Choosing the right tenant is not an easy task. In Australia, various incidents involving tenants using the properties for unlawful purposes like turning them into a drug den is reported almost on a monthly basis. Hence, the rental market is no longer as secure as it used to be.
What are the risks:
The risks are virtually unlimited. In recent incidents, landlords have found out to their utter dismay that their properties have been misused in the following ways:
- Structural modifications, including removal of walls and portions of the floor.
- Electrical rewiring or changes in connections
- Conversion of the basement or outhouse into illicit drug laboratories
- Covering windows to block public view
- Removal or turning around of doors to increase space in the rooms
The cost of repairs
The repair bills for these damages often sum-up to thousands of dollars, making it an unbearable burden for the owner
Insurance companies often refuse to pay the bills, citing violation of the insurance agreement as a reason. This causes the entire burden to come upon the owner, thus wiping away all hope for profit from their investment.
How to prevent this
The best way to prevent this is to be careful. The most prudent way is to involve a property manager during the rental process. He can ensure that the tenant is genuine and the interest of the landlord is protected. However, many landlords try to take a shortcut and directly rent out the properties in order to save on the fees of the property manager. This is a very dangerous trend. The Majority of cases involving such illegal use or modification of rental properties, the landlords were dealing with the tenants directly and did not perform the necessary background checks properly.
The Australian police have found out that tenants who have been repeated offenders in the past have produced fake identification documents and rental history to these landlords to prove that they have clean records. Landlords have taken these fake documents to be authentic and willingly let out their properties to them.
A property manager can protect the landlord by doing proper background and reference checks of the tenant to ensure that the property is let out to the right person. This can ensure that their investment always stays safe and protected.
Related articles:
- How to find the right tenant in a tough rental market
- Background Check By a Property Manager can Protect
- How to find a home that will also be a great investment
- How to improve your cash flow on your investment in a tough rental market
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