Looking to move out of my primary residence and utilize it as a rental as the property has good Cash Flow. Should I use a management company to go about finding good qualified tenants? Or should I do the background checks and screen myself? If so who do I use for extensive background checks? Thanks
Do it yourself. It's not expensive and will give you a feel for the whole landlord experience. If you hate it, hire someone. Personally, I never pay someone to do something I can do myself until my time is worth more than my money.
Go to resources for background check services.
This is not rocket science and you will be surprised at the small amount of time it will absorb.
I am an out of State investor and manage all of my properties remotely. One of the things I do is to utilize the services of a warranty company.
So, this cuts down on finding a local plumber, electrician, AC/Heater technician and appliance repair personnel.
I simply make a call to the warranty company and they dispatch a repair person.
There is a set fee per dispatch.
I am contracted to two companies and pay either $60 or $75 per dispatch, depending on the warranty vendor used.
So, I only need to employ the services of someone locally to do sheetrock, painting or any other repair that's not covered in my warranty contract.
I find this service to be very useful and it saves a lot of time, money and headache.
Good luck with your REI activities and landlording journey.
Thanks a lot guys I appreciate the feedback! The property has all new electric and plumbing pretty much throughout, with only the heat being on the older side. Thus reducing some issues hopefully. My long term goal is to be a landlord so why not dive into it. Any good background check companies to use? thanks
I would like to stress that proper tenant screening is extremely important. We have all heard the stories of "I took the first person that was interested and it worked out great" and we have all heard the horror stories of "I have the worst tenant ever."
Take a look at the free how to guide under Learn for How To Screen Tenants.
Another option could be to pay a one time fee to a property management company to only find and screen a qualified tenant. We do that for owners that want to manage the property themselves but don't want to market and screen applicants. Just make sure that you check out and trust the PM or you might end up paying for a tenant that they did not want.
Either way you decide to go, take action and learn.