As the economic downturn has continued to worsen, I’ve watched deliquencies grow worse at several properties, I believe we are seeing more crime on our properties, and I am sure I could find other effects if I looked closer. All of this has caused me to consider our tenant screening process. The fact is a background check and credit check provide little information.
In the future, our company will be looking for subtle ways to strengthen and broaden our tenant screening process. The results of that effort will focus not only on tenant selection, but also on tenant retention. Consider that if using this information you can change your base as little as 5% per year that the results will become compellingly positive over a few years time.
Our focus is going to be on learning more about lifestyles, education, interests, and social choices. From these, we will focus on tenant retention and tenant incentives. We believe these are excellent way to develop tighter communities where the incentive to rent will overcome the desire to own as residents become more focused on cash producing asset acquisition than homeownership.
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