In a world with technology that’s rapidly changing and evolving every day, more and more businesses are switching to online platforms and digital tools to streamline their processes. In property management, using digital tools in tenant selection has become an indispensable part of the process.
As a property manager, your ability to select responsible and reliable tenants can significantly impact the profitability and longevity of your real estate business. Leveraging digital tools can reduce the time spent on tenant screening and increase the likelihood of finding reliable tenants. Let’s look at how you can use digital tools in your tenant selection process to help you enhance your property management strategies and better utilize modern technology.
Why Should You Use Digital Tools in Your Tenant Selection Process
Before we dive into how you can use these digital tools, we understand that for some landlords, switching from manual to online or technological platforms can be intimidating. We also understand that sometimes, it can feel like a cash grab, but in truth, there are many advantages to using these digital tools in your selection process. One primary advantage is the ability to automate and streamline operations, saving you significant time and effort. For instance, digital applications can quickly gather, analyze, and organize potential tenant data.
Potential tenants can also easily complete applications online, and you can review these applications from anywhere at any time. With the additional ability to communicate online, you can make your business paperless, meaning you never have to worry about filling things out incorrectly or keeping track of paperwork. You don’t have to make a full switch to digital programs either, so you can choose which devices and programs work best for your business. In essence, the right digital tools can revolutionize your tenant selection process, saving you time, reducing overhead costs, and increasing the likelihood of finding reliable tenants.
Choose a Reputable Online Rental Platform
The first step in using digital tools in your tenant selection is to find platforms you can rely on. When selecting an online rental platform, consider the credibility and track record of the platform; look for reviews and testimonials from other property managers who’ve used the platform.
You may also want to look at demos or instructional videos that show you how to use the platform to gauge its functionality and ease of use. It should provide a user-friendly interface that allows you to manage listings, screen tenants, and process applications with minimal effort. The last thing you want is to pay money for a platform that you and your tenants struggle to use.
Create Quality Property Listings
Now that we’ve gone over the basics, let’s really dive into how you can use digital tools in your tenant selection process. Exceptional tenants want trustworthy landlords—and you attract more flies with honey—but what does that mean for using technology? You need to put your best foot forward and show that you’re “with the times” as a landlord. If you want to watch the best applicants roll in, create a quality property listing.
Your listing should include high-quality photographs that showcase the property’s best features, along with a description that accurately reflects the property’s amenities, size, location, and unique selling points. The goal is to provide as much information as possible to attract tenants who are a good fit and to minimize time-consuming inquiries the listing could have answered. Using digital tools, you can easily distribute these detailed listings across various online platforms, reaching a wider audience and increasing the chances of finding the right tenants.
Implement an Online Application Process
Implementing an online application process is critical in leveraging digital tools for tenant selection. An online process is convenient for the applicants and allows you, as the property manager, to manage and assess applications efficiently. However, it’s critical to make sure your chosen platform collects all the necessary data, such as income verification and references.
Some online platforms even offer customizable application forms, allowing you to tailor the application to your specific needs. Once the applications start, you can use digital tools to organize and analyze the data, helping you identify the most suitable candidates.
Communicate via Online Platforms
Online communication is integral to the efficacy of the digital tenant selection process. It offers a convenient, efficient, and secure method of exchanging information and documentation. As a property manager, you can utilize various online platforms to communicate with potential tenants, address their queries, set up virtual property tours, and discuss lease terms and conditions. Email is often the most popular medium, but you can also consider advanced communication tools that offer secure messaging systems and support file sharing.
Almost every tenant you have will have a phone that connects to the internet or a computer at their disposal. That being said, many people value convenience; using email or instant messaging makes life easier for everybody. Being open to various communication methods will reduce the time spent playing phone tag or hunting down tenants. However, keeping a log of messages can be helpful if any legal disputes arise, so do not let messages fall through the cracks.
Review Credit Reports
Not every tenant screening platform will have an add-on for you to conduct credit reports, so you may need to find a separate service. Ultimately, reviewing credit reports is an essential step in the tenant selection process, providing invaluable insights into a potential tenant’s financial reliability.
By using digital tools, you can easily access and review these reports, which detail credit history, debt, and payment behaviors. A strong credit score can indicate a tenant who is financially responsible and likely to meet rental payments punctually.
Stay Compliant With Data Protection Laws
Ultimately, no matter which digital tools and online platforms you decide to use, staying compliant with data protection laws is paramount. As a property manager, you handle the sensitive personal information of prospective tenants, including financial history, employment details, and personal contact information. It’s your responsibility to gather, store, and use this information in compliance with all relevant local, regional, and national data protection regulations.
The good news is that digital tools often come equipped with security features designed to protect this data, including encryption and secure storage solutions. By diligently adhering to data protection laws, you safeguard the interests of your business and your prospective tenants, reinforcing your reputation as a responsible and trustworthy property manager.
However, if making the digital switch is simply too intimidating, or you don’t have the time to comb through so much data, let Excalibur Homes lighten your load. As a rental property management company that’s been in business for over 40 years, we have the experience, tools, and dedication necessary to find the perfect tenants for your property. We’re dedicated to making sure property owners like you succeed, so let us sift through the applicants and help you get the most out of your investment.
