At Spartan Invest, we pride ourselves on providing a seamless and stress-free investment experience. A significant part of achieving this goal involves our approach to tenant selection and property management. One question we often receive from investors is why they aren’t involved in the tenant selection process. While we understand the desire for control and transparency, there are compelling reasons why we manage this aspect of the investment on your behalf.
1. Consistency and Fairness
Tenant selection must adhere to strict legal guidelines to ensure fairness and avoid discrimination. Our property management team follows a standardized process that is compliant with all relevant federal fair housing laws. By freeing investors of the process, we maintain consistency and ensure that every applicant is treated equally, reducing the risk of any potential legal issues that could arise from perceived or actual discrimination.
Suppose an investor prefers tenants from a certain professional background, believing they are more reliable. This preference could unintentionally lead to discrimination, which could result in legal complications. Our impartial process ensures that all applicants are judged fairly, reducing the risk of lawsuits or fines for discrimination.
Real estate investors—especially out-of-state investors—should be well-versed with the federal fair housing laws and state anti-discrimination statutes. Listen to episode 74 of On The House With Spartan for a detailed breakdown.
2. Expertise and Experience
Our property management team is composed of seasoned professionals with years of experience in tenant screening. They are well-versed in the local rental market and understand the nuances of selecting tenants who are likely to pay rent on time, take care of the property, and adhere to the terms of the lease. Our team completes hours of crucial training with certified professionals every year to keep us up-to-date with industry standards, enhance our expertise, and ensure we deliver the highest quality service to our clients. This expertise allows us to make informed decisions based on a thorough understanding of what makes a reliable tenant.
An investor might see a tenant with a high income and excellent credit score and think they’re a perfect fit. However, our team might notice that this tenant has a history of moving frequently, indicating instability. By relying on our experience, we might opt for another applicant with slightly lower income but a proven track record of long-term residency and timely payments.
3. Focus on Efficiency
The tenant selection process requires careful attention to detail, from background checks and credit assessments to verifying employment and rental history. Allowing investor involvement could slow down this process, leading to longer vacancy periods and lost rental income. Our streamlined approach allows us to fill vacancies quickly while maintaining high standards for tenant quality. Not to mention, this is not the best use of YOUR time. As a full-service turnkey operator, our goal is to make this as hands-off for you as possible.
An investor might request to personally interview potential tenants, delaying the process. Meanwhile, the property sits vacant, losing potential rental income. Our streamlined process allows us to fill vacancies quickly, ensuring that your property remains a revenue-generating asset.
4. Protecting Investor Interests
While it may seem counterintuitive, limiting investor involvement in tenant selection actually serves to protect their interests. By handling this process internally, we minimize the risk of making decisions based on emotions or incomplete information. Our objective is to place the best possible tenant in your property, ensuring a stable and reliable rental income.
An investor might feel sympathy for an applicant with a compelling personal story but a shaky financial history. Approving this tenant could lead to missed rent payments and eventual eviction, which is costly and stressful. Our team, while empathetic, focuses on selecting tenants who are most likely to fulfill their lease obligations, thus safeguarding your investment.
5. Preserving Relationships
Tenant relations are a critical component of successful property management. By keeping investors at a distance from the tenant selection process, we help to maintain a professional relationship between tenants and property managers. This separation allows us to handle any issues that arise impartially and effectively, without the added complexity of investor involvement.
If an investor personally selects a tenant, they might feel personally responsible for any future conflicts, making it harder to take necessary actions like issuing a notice for non-payment of rent. By keeping the selection process in-house, our team can manage tenant relationships professionally and address issues objectively, without the added emotional complexity.
6. Maximizing Your Investment’s Potential
At Spartan Invest, our ultimate goal is to maximize the return on your investment. We understand that your time is valuable, and we want you to focus on the bigger picture of growing your portfolio and achieving your financial goals. By entrusting the tenant selection process to us, you can rest assured that your property is in capable hands, allowing you to enjoy the benefits of a truly passive investment.
Consider an investor who is involved in tenant selection for multiple properties. The time spent on this task could be better used to explore new investment opportunities or enhance their existing portfolio. By letting us handle tenant selection, you free up valuable time and energy to focus on expanding your wealth.
Conclusion
Our approach to tenant selection is designed to provide investors with peace of mind, knowing that their properties are managed by professionals who are committed to maximizing returns while minimizing risks. By keeping investors out of the tenant selection process, Spartan Invest ensures consistency, efficiency, and legal compliance, all of which contribute to the long-term success of your investment.
If you have any questions or concerns about our property management services, we encourage you to reach out to our team. We’re here to support you every step of the way on your investment journey.