Calendar icon November 16, 2023

Tenant Screening Tips for PMs: Streamline Tenant Background Checks

Photo of Andrew Smallwood

Andrew Smallwood

Chief Customer Officer - Second Nature

Screening renters is an essential part of a property manager’s job. But all too often, the approach is strictly transactional: Forms must be scanned and uploaded, data must be entered manually, and property managers and tenants alike can find the process cumbersome and frustrating.

This legacy approach isn’t enough in today’s fast-moving experience economy. Companies like Google, Uber, and Amazon have changed how consumers think. Convenience isn’t a luxury anymore; it’s an expectation. And for a property management company, convenience can be a strategy. When approached through the lens of a holistic experience, tenant screening is one of the best ways to set yourself apart.

Related: State of Resident Experience Study

 

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Tenant Screening Tips

The first step to improving a process is to ensure you can structure it. What follows is a best-practice approach to tenant screening, complete with tips for success at every step. 

1. Understand tenant screening laws 

With a Triple Win mindset, PMs will seek tools that help them remain objective and fair to all applicants. That’s why every professional PM should be familiar with tenant screening laws in their area. Tenant screening laws are regulations put in place to protect tenants from discrimination, unfair eviction, etc. They govern interactions between real estate investors, property managers, and tenants. 

One of the best-known regulations is the Fair Housing Act, which protects tenants from discrimination on the basis of:

  1. Race
  2. Color
  3. Religion
  4. National Origin/Ethnic Background
  5. Gender
  6. Familial Status
  7. Mental/Physical Disability

2. Create tenant screening criteria 

Creating tenant screening reports is an important part of the rental property management process. Here are the steps to take:

  • Define your target market: Identify the type of tenants you want to attract based on factors such as property location, size, price, and amenities
  • Set minimum requirements: Determine the minimum criteria that all potential tenants must meet, such as a certain credit score through ResidentScore or other tools, or income level.
  • Consider additional factors: Other factors may be important to you, such as employment history, rental history, criminal background, and references.
  • Establish a scoring system: Create a system to evaluate potential tenants based on the criteria you've established. For example, you may assign points for positive credit history or deduct points for a criminal record, taking care to evaluate each person individually and fairly.
  • Apply the criteria consistently: Ensure that you apply the screening criteria consistently to avoid discrimination and potential legal issues.
  • Review and update regularly: Review and update screening criteria regularly to ensure that they remain relevant and effective for your rental property.

3. Check credit report and background  

Some screening providers are leveraging financial data APIs or "open banking" tools to automate income and employment verification. Tenant screening services like Plaid, Finicity, Pinwheel, and more are being applied to rental screening and replacing manual document upload and review. 

You can also find tools for getting a full credit report and credit background. Credit reporting should be compliant with the Fair Credit Reporting Act (FCRA).

As identity fraud becomes more prevalent, identity verification tools are becoming more sophisticated. Some can even effectively identify past rent transactions in the bank account ledger. Most of these tools are being built for large apartment operators, but more innovation is coming to SFR, too. 

Second Nature’s Resident Benefits Package includes a $1 million identity protection program and credit building for tenants. These programs protect your tenants and help draw people who want to build responsible financial security.

4. Verify employment and income

A big question on every PM’s mind is how to evaluate a prospective tenants’ ability to pay rent. Is what matters the income? Credit history? The cash balance a tenant carries? Or just their history for prioritizing rent payments?

The traditional (and oversimplified) answer is to slap on the widely accepted income-to-rent ratio of 3-to-1 or to look for a specific credit score. But neither of these tell the whole story of a tenant’s ability, or even likelihood, to pay rent and to pay on time. 

A much more telling number is a potential renter’s net income. Net income is true spending power. A net income of 2.5 or 3 times the monthly rent is a good starting point. But how do you quickly verify this information? Pay Stubs will work, but experienced property managers know a simple pay stub template is a Google search away. 

This is where an automated income verification tool can provide an advantage, reliability, and speed. You’ll have much more accurate insight into tenants’ ability to pay rent and get them verified in much less time.

5. Review rental history and evictions

As a follow-up to background checks, property management companies should have a process for reviewing an applicant’s rental history and potential evictions. 

Don’t just accept a letter from previous landlords – call and ask about their experience. Getting their perspective is one of the best ways to check on rental and eviction history.

6. Check criminal record with multi-state search

When it comes to tenant screening, one crucial aspect is conducting a criminal record check that includes a multi-state history report. This step is vital to safeguard you and your team from legal headaches or disruption down the road. A multi-state search provides a broader view of an applicant's history, as it covers more than just the state they currently reside in or are applying from. This is particularly important because individuals may have lived or committed offenses in different states.

By implementing a comprehensive background check that spans multiple states, you can uncover any criminal history that might not be evident in a local or state-only check. This process helps in making informed decisions about potential tenants, ensuring you're not inadvertently overlooking important information that could affect the security of your property or the neighborhood. Of course, this doesn't mean denying anyone with a criminal record. Fair housing laws will have established rules on this that property managers should know well for their area.

7. Interview tenants before signing a lease  

Property managers should ensure someone on their team conducts an interview with potential tenants, particularly in SFR property management where lease terms are usually longer.

Here is a list of questions that property managers may consider asking potential tenants during the screening process:

  1. What is your current occupation and monthly income?
  2. Have you ever been evicted from a rental property or broken a lease agreement?
  3. How long have you been at your current job, and what is your employer's contact information?
  4. Do you have any pets, and if so, what type and how many?
  5. What is your desired move-in date and lease length?
  6. Will you have any roommates or co-tenants, and if so, what are their names and contact information?
  7. Have you ever filed for bankruptcy or had any outstanding debts?
  8. Do you have a good rental history, and can you provide contact information for your previous landlords and previous addresses?
  9. Are you willing to undergo a tenant credit check and background check as part of the application process?

Again, please note that investors and property managers should be careful not to ask discriminatory questions that could violate fair housing laws. 

Additionally, it may be helpful to provide potential tenants with information about the property, such as move-in costs, lease terms, and any rules or restrictions that apply to the rental property. After all, the property manager’s goal is to create an experience that caters to tenants in order to create the best value for their investors.

 

download rental inspection checklist template

 

8. Follow a fair policy when accepting or rejecting tenants

A consistent and objective set of screening criteria goes a long way to simplifying the acceptance or rejection process. 

Here are some steps to follow when accepting or rejecting rental applicants:

  • Evaluate the applicant's information: Review the application and any supporting documentation, such as credit reports, employment verification, and rental history. You may also charge an application fee.
  • Compare the applicant to your screening criteria: Compare the applicant's information to your established screening criteria and determine if they meet the minimum requirements.
  • Consider any additional factors: Consider any additional factors that may impact the applicant's suitability as a tenant, such as their behavior during the application process, their responsiveness to communication, and any references provided.
  • Communicate your decision: Communicate your decision to the applicant in writing, providing clear and specific reasons for your decision. Be sure to also inform the applicant of their rights to request a copy of an applicant’s credit report and to dispute any errors.
  • Keep accurate records: Keep accurate records of your tenant screening process, including copies of all applications and supporting documentation, as well as notes on your evaluation of each applicant.
  • Maintain consistency: Apply your screening criteria consistently to all applicants to avoid any potential discrimination claims.

Remember, it is essential to treat all applicants fairly and to follow fair housing laws and state-specific regulations to avoid discrimination.

Example tenant screening checklist   

Here is an example of a comprehensive tenant screening checklist template, based on the best tenant screening services:

1. Basic Information:

  • Full name
  • Current address
  • Contact information (phone, email)

2. Income and Employment:

  • Proof of income (pay stubs, bank statements, tax returns)
  • Employment history (length of employment, job title, employer contact information)
  • Gross income (should be 3 times the monthly rent)

3. Credit History:

  • Credit score (should be above 650)
  • Credit report (to check for bankruptcies, late payments, collections)
  • Outstanding debts

4. Rental History:

  • Previous rental history (landlord contact information, length of stay, reason for leaving, address history)
  • Evictions (any prior evictions, eviction records, eviction reports)

5. Criminal Background:

  • Criminal history (felony convictions, sex offender status)

6. References:

  • Personal references (contact information for at least two personal references)
  • Professional references (contact information for at least two professional references)

7. Other Factors:

  • Pet ownership (type, size, breed, and number of pets)
  • Smoking policy (whether or not smoking is allowed in the rental property)
  • Other specific requirements (e.g. credit checks, criminal background checks, rental history checks, etc.)

The criteria on this checklist may vary based on the specific needs and requirements of the investor or property manager – and local laws. 

 

Happier residents

 

Benefits of screening tenants

Why screen tenants? The answer might seem obvious. You can Google “tenant screening,” and you’ll see any number of articles giving the common reasons for screening tenants: protecting your property, protecting your financial situation, etc. 

And yes, all of that is important. But elite property managers know that protecting yourself is the bare minimum. The best PMs consider the tenant screening process the first chance to make an impression and win the best tenants. Success is about creating and delivering the best experiences for tenants, investors, and property managers. 

At Second Nature, we call this the Triple Win. Property managers should be thinking: “How do we design the screening process for a Triple Win?”

Here’s what we mean by that.

A win for investors

What do real estate investors want? Bottom line: To maximize their investment by having all residences occupied by good tenants.

But there’s tension when you’re aiming to maximize investment. Investors have two primary needs when filling a rental property, and they can seem opposed:

  • How do I select a quality tenant who will pay rent on time, stay a long time, take care of the home, and be generally cooperative? 
  • How do I fill the property as fast as possible? Every day a home is vacant, it generates zero revenue and incurs costs. 

Investors win when they have a screening process that can deliver quality tenants, fast.

A win for tenants

What do tenants want? Bottom line: To be approved quickly and easily. 

Think about when you’re applying for a job. The employer honestly can’t work too fast to get you in a good seat. The faster, the better. 

As we mentioned before, convenience is no longer a luxury; it’s an expectation. Tenants want to move quickly toward the lease agreement without too much effort. Therefore, building convenience into the screening process is a crucial strategy for a successful property manager to attract the best business. 

A win for property managers

Professional property managers stand out by providing experiences that are consistent, convenient, and rewarding for investors and tenants. But they also need to design the process with the experience of their team in mind, too. 

PMs focused on a Triple Win can align qualified tenants’ desire for convenience with an investor’s desire to be protected from risky applicants and vacancy costs. As if that’s not enough of a challenge, they also need to accomplish this in a way that complies with fair housing regulations. 

Therefore, an enterprising property manager will design the screening process to create experiential value and better monetize each property. 

Ultimately a Triple Win for tenant screening is introducing speed, accuracy, and convenience to a legacy process. Let’s dive into that concept in the next section. 

Tenant screening services  

Tenant screening services can help perform identity verification, an assessment of the prospective tenant's financial situation, and evaluate any factors that may be relevant. They typically access information from a wide variety of sources to compile a current and precise tenant portrait.

Most tenant screening services offer their services online, where property managers can supply the identifying information of an applicant to get a full report within minutes.

Here are just a few: 

  1. National Tenant Network
  2. TransUnion
  3. Experian
  4. Findigs
  5. Rent Butter
  6. Snappt
  7. Verifast

Which tenant screening solution is right for you?

When selecting a tenant screening solution, begin by assessing your specific scope as well as budget constraints. Bear in mind that some solutions are limited in scope in that they primarily provide credit reports, while others may be geared toward landlords rather than property managers.

In all cases, seek out providers with reputable customer support (as indicated on popular software comparison sites as well as app download stores) and user-friendly interfaces to streamline the screening process. Additionally, consider any legal requirements or industry standards relevant to your situation. 

By weighing these factors, you can select a tenant screening solution that aligns with your requirements and helps mitigate some of the risks associated with property management.

How does Second Nature help with the tenant screening process?

Like we’ve said – and as most PMs recognize – legacy “tenant screening” systems are the worst. They’re clunky. They’re long and tedious. They require a ridiculous amount of manual work to upload pay stubs or other documents. 

Think about how seamless an experience it is to find a listing on Zillow. It works smoothly on desktop or mobile, and the app is clean, easy, and responsive. You can find 3D tours, self-showings, and all kinds of innovations happening in the discovery process. Then you hit "click to apply.” Whomp whomp. Suddenly, you hit a mediocre (or worse!) experience that feels a decade old or more. It can take days from that initial button click for submission, review, and official approval/declination.

But imagine if this was all designed through an experience lens instead of an accounting or transactional lens. PMs who want to stand out will have a screening process that works like an Easy Button. So how might we make it as easy as possible for the best tenants to get approved same-day by the best property managers in the country? 

Think about your current screening system. You can see if a tenant paid rent, but can you see if they changed their filters, reported minor maintenance issues, how they treated and communicated with staff, what condition they left the property in, and the security deposit status? Do you have a Resident Benefits Package that attracts tenants who care about good habits and supports them in those habits?

The screening process sets the tone and the standard for the rest of your relationship with a tenant. Property managers can be part of helping build good habits right from the start.

Learn more about what tenants are looking for today and how PMs are innovating in response.

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Resident Experience

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Property Management Outsourcing Services: Example Tasks & Best Providers

Virtual assistants are becoming increasingly important in the property management industry for a number of reasons. First are the associated efficiencies. Property managers often wear many hats, juggling tasks like resident communication, lease agreements, maintenance requests, and advertising. A virtual assistant can handle many of these administrative and repetitive tasks, freeing up the property manager's time to focus on more strategic initiatives. Virtual assistants can also act as a communication "hub" between residents, property management companies, and service providers. They can field calls and emails, schedule appointments, and ensure everyone is on the same page. In the same vein, virtual assistants can help with tasks related to online advertising for vacancies, managing a social media presence to attract potential residents, and even creating basic property videos or photos for listings. It’s important to note that virtual assistants are not a replacement for in-house staff. Instead, they allow staff to focus on important tasks that add value, as opposed to time-consuming manual operations. In today's post, we'll provide concrete examples of how virtual assistants can help property managers, the pros and cons of using these services, and a brief directory of property management virtual assistant service providers. Note on language: In the interest of clear communication, particularly regarding legal matters, this blog post may occasionally use the term "tenant" in reference to residents. While "resident" reflects the valued community we aim to support, service provider agreements and other legal documents today typically use the term "tenant." For the majority of this post, however, we'll utilize the term "resident" to best represent the positive and collaborative atmosphere we aim to cultivate. What is outsourced property management? Outsourced property management refers to the practice of paying for a third-party company or product to handle certain tasks or operations for your property management company. This could include tasks such as tenant screening, resident benefits, renters insurance programs, rent collection, maintenance and repair coordination, lease enforcement, financial reporting, and more. Property management is in itself an outsourced service for real estate investors/property owners. Just as property owners often choose to outsource their property management to save time, reduce stress, and ensure they stay profitable – property management companies may outsource several of their services for the same reasons. Property management outsourcing services, whether PropTech products or fully managed solutions, allow property management companies to build efficiencies and focus on quality and growth. Outsourcing certain services can give residents more of what they need and investors more value for their dollar. Example property management tasks you can outsource to virtual assistants The number of tasks property managers can outsource has increased over time, as companies have become more comfortable with geographically dispersed teams, and as virtual assistants themselves have become more sophisticated (better communication skills, task automation capabilities, and access to information). Given that the benefits of outsourcing to virtual assistants are on the rise, here is a sampling of tasks that can currently be outsourced to virtual assistants. Outreach to homeowners for management Virtual assistants can be a property management company's secret weapon for improving homeowner outreach in a few key ways. Given that property managers often manage a large number of properties and homeowners, virtual assistants can handle sending personalized emails, texts, or even making phone calls to homeowners. As indicated above, they can also help manage the property management company's social media presence, posting updates, building trust, and boosting its brand presence to property owners. Property assessments While virtual assistants can't directly conduct rental property assessments, which typically involve a qualified professional inspecting the property's condition, they can provide valuable support throughout the assessment process by gathering and organizing property information crucial for the assessment (for example, details such as square footage, number of bedrooms/bathrooms, year built, major renovations, and past maintenance upkeep records). They can also compile relevant data from property management software or online real estate industry resources. Virtual assistants can also manage the scheduling of property assessors and ensure clear communication between the property owner, property manager, and the assessor. This involves sending appointment reminders, handling any cancellations or rescheduling needs, and keeping everyone informed throughout the process. Once any given assessment is complete, a virtual assistant can help process and organize the assessor's report. This might involve formatting the report, creating digital copies, and ensuring it's easily accessible to the property manager and owner. Creating and presenting management proposals Virtual assistants can be a highly cost-effective asset to property management companies when it comes to creating and presenting management proposals. For instance, virtual assistants can save a lot of time by gathering data on comparable properties in the area, including rental rates, vacancy rates, and recent sales. They can pull this data from industry reports, rental listing websites, or public property records. They can also compile details about specific rental properties under management such as square footage, amenities, maintenance history, and any unique features. This ensures the proposal accurately reflects the property's value and the services offered. In addition, virtual assistants can alleviate the hassle of creating or maintaining templates for management proposals, ensuring consistency in branding and formatting. This saves time and ensures a professional presentation. As far as actual proposal presentation is concerned, virtual assistants can handle the electronic delivery of the proposal to the client and schedule follow-up calls or meetings to discuss the proposal details and answer any questions. If the property manager is competing against other companies, a virtual assistant can help research competitor offerings and identify areas where your proposal can stand out. Determining property rent In addition to the market research capabilities mentioned above, virtual assistants can gather data on rental trends in the target area. This includes vacancy rates, as well as recent rental listings for comparable properties (similar size, bedrooms, amenities) and their advertised rent prices. They can find this information on rental listing websites, property management software, or public rental databases. Virtual assistants can also handle initial communication with investors to understand their rental expectations and any specific goals they might have (e.g., maximizing rent vs. filling the vacancy quickly). Creating and organizing property photos and marketing material Virtual assistants can be a game-changer for property management businesses when it comes to creating and organizing property photos and marketing materials. If professional photography is required, a virtual assistant can schedule appointments with photographers, and even perform basic photo editing tasks like cropping, and adjusting brightness and contrast. This ensures a clean and polished presentation of the property. They can also create file-naming conventions for these photos, in order to make them easily searchable for future use in marketing materials or listings. As far as marketing materials are concerned, virtual assistants can create or maintain templates for various materials, ensuring consistent branding and design across all platforms. This saves time and creates a professional look while delivering cost savings. Advertising the property Virtual assistants can be highly beneficial for property management companies when it comes to advertising their properties. For instance, virtual assistants can create and manage listings on various online rental platforms, ensuring accurate and up-to-date property information reaches a wide audience of potential tenants. They can also optimize listings with relevant keywords to improve search ranking. On the social media channel, virtual assistants can help create targeted ads with eye-catching visuals and compelling descriptions highlighting the property's best features. They can also schedule ad posts and track their performance to optimize future campaigns. In general, virtual assistants can create and manage a content calendar for property promotions. This can include scheduling social media posts, email blasts to potential residents, or even blog posts showcasing the property and surrounding neighborhood. Responding to inquiries Virtual assistants can be the first point of contact for prospective tenants who inquire about a property through listings, social media, or the company website. They can answer basic questions, schedule viewings, and qualify leads to ensure they are a good fit for the property. Likewise, when it comes to responding to inquiries from potential investors, they can assess the lead quality and guide the initial conversation. Vetting resident applications Virtual assistants can be a valuable asset in the vetting process for property management companies. For starters, they can handle the initial processing of rental applications, collecting and organizing applicant information, as well as lease agreements and supporting documents. This frees up property managers to focus on reviewing qualified applications. They can also manage initial communication with applicants. This might involve sending automated emails with application instructions, answering basic questions about the property or application process, and scheduling appointments for viewings. Many property management companies use tenant screening software that virtual assistants can be trained to utilize, ordering credit reports, background checks, and eviction history reports efficiently. Approving a tenant application after review Virtual assistants can play a crucial role in streamlining the post-review approval process for property management companies. Once the property manager approves an applicant, they can handle initial communication with the new resident. This might sending a lease agreement electronically, explaining signing procedures, and collecting e-signatures. Virtual assistants can also coordinate move-in logistics, such as scheduling move-in property inspections, providing information on utility activation, and sending welcome packages with important building information and resident resources. Lease preparation Virtual assistants can help to streamline the process of lease preparation while minimizing the potential for errors. At a minimum, they can gather essential information from the approved application and property details to populate lease templates. This might include resident names, contact details, leasing terms, rent amounts, and security deposit details. Many property management companies use pre-defined lease templates with standard clauses outlining They can then handle initial communication with the approved resident about lease signing. This might involve sending the lease electronically, explaining signing procedures, and answering basic questions about lease terms and conditions. resident responsibilities, maintenance procedures, and lease termination processes. Virtual assistants can ensure these clauses are included in the lease agreement. They can also review completed lease agreements for any typos, inconsistencies, or missing information before sending them to the resident for review and signature. Lease renewals Virtual assistants can also help streamline the process of lease renewal, thereby helping to increase resident retention. For example, virtual assistants can monitor lease agreements and identify upcoming lease expirations. They can then create a timeline for initiating communication with residents about potential renewals, via personalized emails or letters to residents approaching the end of their lease term. These messages can express appreciation for their residency, highlight the benefits of renewing, and outline the renewal process. Virtual assistants can also track resident responses to renewal offers, flagging those requiring further discussion with the property manager. They can also generate reports on renewal rates, providing valuable data for analyzing resident retention strategies. Running tenant background checks While virtual assistants can't legally conduct background checks themselves, they can be a valuable asset in streamlining the process for property management companies. This might include managing the initial steps of collecting and organizing applicant information crucial for background checks. This includes details like full names, Social Security numbers (with applicant consent), and previous addresses. They can also help maintain standardized forms with clear instructions for applicants regarding background check consent. This ensures applicants understand the process and provide the necessary authorization for releasing information to background check companies. Organizing tenant records Virtual assistants can be instrumental in bringing order to record-keeping processes, from data entry and management to record-keeping and accessibility. They can handle the initial data entry of resident information from applications, including names, contact details, emergency contacts, lease details, and pet information. This ensures all crucial information is captured and readily accessible. Virtual assistants can upload and organize various tenant documents electronically. This might include lease agreements, signed addendums, rental history verifications, and maintenance request records. They can also create a filing system for easy retrieval of documents when needed. Note that virtual assistants should be trained on data security and privacy regulations to ensure the confidentiality of resident information – while virtual assistants can manage record-keeping tasks, the property manager should maintain oversight and ensure compliance with data protection laws. Invoicing and accounting Virtual assistants can handle a range of tasks related to recording rent payments, managing maintenance expenses, and categorizing various property management costs For example, virtual assistants can help set up secure online payment portals for residents to easily submit rent payments electronically. On the tracking side, virtual assistants can track incoming payments, reconcile bank statements, and ensure accurate records are maintained. Virtual assistants can then generate basic financial reports for the property manager, summarizing expenses and overall property income. This allows for better financial tracking and informed decision-making. Many property management companies utilize accounting software. Virtual assistants can be trained to use these platforms, automating tasks like data entry and simplifying record-keeping. Best property management virtual assistant services providers Identifying the "best" virtual assistant service provider will of course depend on your specific needs and budget. First, we'd recommend that you determine the specific tasks you want your virtual assistant to handle (e.g., advertising, resident communication, bookkeeping), then conduct research on different providers, and compare their services offered, pricing structures, and experience with property management. Also look to online reviews and ask potential providers questions about their screening processes, and data security measures. That said, here are three virtual assistant service providers with high ratings. Virtudesk Virtudesk specializes in virtual assistants for various industries, including property management. They offer a proven track record and a focus on quality service. Learn more MyOutDesk Known for their expertise in real estate and property management, MyOutDesk offers virtual assistants with experience in tasks relevant to the field. Learn more Wishup This company boasts a user-friendly platform, offers flexible pricing plans, and has a quick onboarding process for virtual assistants. Learn more Pros and cons of using property management virtual assistants Overall, virtual assistants can be a valuable asset for property management companies, boosting profitability, resident satisfaction, and business growth. However, careful vetting, clear communication, and training are necessary to mitigate potential downsides related to quality control, local regulations, legal issues, and retention. Pros of using virtual assistants in property management Increased profitability Virtual assistants can handle tasks like advertising and resident communication, freeing up property managers to focus on maximizing rental income and minimizing vacancies. Improved tenant satisfaction Virtual assistants can ensure timely responses to new tenant inquiries and manage resident portals, leading to a more responsive and efficient experience for residents. Streamlined bookkeeping and reporting Virtual assistants can assist with bookkeeping tasks and help generate accurate financial reports, allowing for better financial management. Support for business growth Virtual assistants can handle administrative tasks and marketing efforts, reducing the overhead costs of executing this work, and freeing up property managers to focus on growing their business and taking on new clients. Cons of using virtual assistants in property management Quality control challenges Ensuring the quality of services provided by virtual assistants can be tricky, especially for complex tasks like legal compliance or resident screening. Potential legal issues Data security and privacy become a concern when sharing property information with virtual assistants. Clear contracts and data security measures are crucial. Retention challenges Finding and retaining qualified virtual assistants can be difficult, especially for specialized tasks within property management. Maintaining resident satisfaction Reliance on virtual assistants for initial communication with residents might lead to impersonal interactions, potentially impacting satisfaction. Limited expertise Virtual assistants may not have in-depth knowledge of property management regulations or local real estate market nuances compared to experienced property managers. How PMCs are outsourcing services for better resident experiences Property management companies are always looking for new ways to generate value for themselves, their residents, and their investors. One of the quickest ways to scale and increase return on investment can be through property management service outsourcing. At Second Nature, we’ve pioneered the first-ever fully managed Resident Benefits Package. The goal is to make property management easier for PMs, residents, and investors – and drive value that benefits all three. We call it the Triple Win. Our RBP provides services that residents are proven to pay and stay for – and our team manages every part of the process so property managers can focus on what's important to them.

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What Are the Benefits of Hiring Property Management Virtual Assistants?

A property management virtual assistant, or property management VA, is a remote professional who provides administrative, operational, and sometimes technical support to property managers and their teams. As a property management company grows, its workload inevitably increases. In that scenario, virtual assistants can be a valuable asset thanks to their ability to handle repetitive tasks like lease renewals, resident communication, and basic bookkeeping. This frees up property managers to focus on strategic initiatives and resident relations, and allows the company to manage more properties and increase revenue without proportionally increasing staff costs. In today's post, we'll dig into the benefits of hiring virtual assistants for property management companies, from improved efficiency to reduced admin burdens and more. Improving operational efficiency and productivity Property management business owners juggle a vast array of tasks, from marketing vacancies to managing resident concerns. Virtual assistants can be powerful allies in this full-time endeavor, boosting operational efficiency and productivity in several key ways. Filed under "streamlining repetitive tasks" are basic operations such as handling routine resident communication via email, phone calls, or text. This might include sending lease renewals, answering basic questions about property policies, and scheduling appointments for maintenance or viewings. Virtual assistants can also support various marketing and prospecting/lead generation functions, including social media management (e.g., the creation of posts publicizing property listings, publishing calendar updates, etc.). Another area where virtual assistants can boost efficiency is in the automation of invoicing for rent payments, sending receipts to residents, and tracking incoming payments. This frees up property managers from manual tasks and reduces the risk of errors. As for more complex processes such as background checks and resident screening, while virtual assistants cannot themselves conduct the checks, they can gather necessary information, initiate renter background check requests with service providers, and follow up on reports. They can also assist with time-consuming tasks such as generating basic real estate business reports on areas like vacancy rates and resident demographics. This data can be valuable for property managers and property owners to identify trends and make informed decisions. Reducing costs by outsourcing back-office operations Back-office operations can quickly become a time and resource drain for property management companies. In this respect, virtual assistants can help generate cost savings by streamlining and managing these essential tasks. In handling routine back-office tasks, virtual assistants free up property managers to focus on high-value activities like strategic planning, resident relations, and property marketing. This increases overall productivity and leads to better financial returns. As indicated above, virtual assistants can also automate repetitive tasks like invoicing, rent collection, and data entry. This minimizes errors and saves time compared to manual processes, reducing the need for staff to correct mistakes. On the resident experience side, virtual assistants can help reduce resident turnover by ensuring timely communication, efficient maintenance request management, and a positive resident experience. This boosts cost-effectiveness in relation to marketing vacancies, new resident screening, and repairs needed to prepare properties for new residents. Reducing the administrative burden Property management companies juggle many tasks that can leave them swamped with administrative duties. Virtual assistants can help tackle some of these time-consuming chores, such as fielding resident inquiries, handling maintenance requests, and even scheduling property inspections, or showings for new residents. This ensures timely responses and frees up the property manager's time for more strategic tasks and business needs. They can also manage the influx of documents, organizing lease agreements, resident applications, and financial records. This keeps everything organized and readily accessible, saving the property manager from the necessity of digging through files. Fixing capacity limitations When property management companies are limited in their staffing resources, a virtual team can act as an extension of the in-house team, effectively breaking through these capacity limitations. For example, by handling routine administrative tasks like resident communication and lease renewals, virtual assistants free up property managers to focus on acquiring new business or managing a larger number of properties. A virtual property management assistant can also serve as a remote team by operating outside regular business hours, meaning tasks like fielding resident inquiries or scheduling maintenance requests can be addressed after hours, improving overall responsiveness and customer satisfaction. In essence, they act as a force multiplier across time zones, extending the reach and capacity of the existing property management team members. Outsourcing non-revenue tasks In sum, virtual assistant services can encompass a wide range of non-revenue property management tasks, workflows, and job descriptions: Administrative duties This can include data entry, scheduling appointments, managing calendars, and filing documents. Resident communication Responding to routine resident emails and calls about things like maintenance coordination, parking inquiries, or noise complaints can be time-consuming. A virtual assistant can handle these initial interactions. Lease management Virtual assistants can support PMs with lease renewals, sending out reminders, processing paperwork, and answering basic resident questions about the lease agreement. Move-in/move-out coordination Scheduling onboarding processes, move-in inspections, collecting pre-move-in information from residents, and processing move-out checklists are all tasks a virtual assistant can handle. Service provider communication Coordinating with cleaning crews, landscapers, and other vendors often involves pricing inquiries, scheduling appointments, following up on requests, and managing invoices. A virtual assistant can help streamline this communication. Report generation Virtual assistants can compile routine reports such as vacancy rates, maintenance requests, and rent collection summaries. The last word At Second Nature, we’ve pioneered the first-ever fully managed Resident Benefits Package. The goal is to make property management easier for PMs, residents, and investors – and drive value that benefits all three. We call it the Triple Win. Our RBP provides services that residents are proven to pay and stay for – and our team manages every part of the process so property managers can focus on what's important to them.

Calendar icon April 29, 2024

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