Though it’s simple to make mistakes that could cause costly problems down the road, tenant screening is one of the most critical steps in rental property management. Significant issues, including late payments, damage to property, increased turnover, and even legal complications, can occur when essential parts of the background check and key steps in the screening process are ignored or when personal biases affect decision-making.
The good thing is that avoiding these mistakes can help you attract high-quality tenants and keep your properties running smoothly. Listed below are some of the most common tenant screening mistakes, in addition to practical tips on how to avoid them.
Mistake #1: Failing to Screen Consistently
Tenant screening is most effective when done constantly. Make sure you use a similar standard for every applicant without permitting your emotions or personal biases to influence your decisions. This will guarantee consistency. Failure to screen consistently and objectively can bring about a number of problems, such as losing out on a great renter and possibly being sued for discrimination.
All landlords should do all in their power to avoid legal action since it is an expensive and laborious process. You need to be familiar with which laws pertain to your situation and to keep your screening process compliant, as several federal laws prohibit discrimination in housing.
Mistake #2: Not Checking the Right References
Another common mistake during screening is failing to verify the correct references. As an element of the application process, you need to get personal and professional references from prospective tenants in addition to previous landlords. Employment history, financial references, and personal character references are all suitable types of references to demand. After that, be sure to call all of these references and ask the right questions.
For illustration, you could ask them how long they’ve known the applicant, their job performance, how well they care for their current living space, and if they’ve observed any red flags. Depending on the type of reference, you should adapt your list of questions accordingly.
Mistake #3: Overlooking Credit and Background Checks
Disregarding to run credit and background checks on the applicant is another common mistake in tenant screening. Both assessments are relatively normal in rental markets nationwide, but some property owners and managers still overlook this opportunity to learn valuable information about their renters.
Credit and background checks tell a story about a person and can help you identify possible red flags, such as prior evictions, criminal history, or financial difficulties. Although not every bad review on a credit report or a background check is an automatic cause for refusal of an application, these valuations do give you what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Not inspecting a tenant’s credit history is one of the worst mistakes a rental property manager can make. Rental history is important to inspect since it can give you insight into a renter’s likely future behavior.
Check the rental history thoroughly for any warning signs, such as a history of delayed payments, harm to the property, and other lease agreement violations. Even though it is critical not to base your whole decision on a previous landlord’s report of a person, mainly if there were disagreements during the rental period, it can provide valuable insight into how the applicant is likely to behave as a renter.
Mistake #5: Inadequate Communication with Applicants
Finally, the last mistake rental property owners and managers make during the screening process is failing to communicate clearly and consistently with the applicant. Looking for a rental home can be a stressful experience for renters, and disturbance can easily escalate into negative feelings. Remember that your renter’s experience commences with the first communication with you and will continue throughout your association, no matter how long it lasts.
To foster a positive relationship with your tenant, start on the right foot by being clear about your application necessities, due dates, and how your decision will be communicated. This approach can help you avoid misunderstandings that could dismay or dishearten applicants and result in negative reviews.
Get Your Screening Process Right!
By following these tips and strategies, you can easily avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can result in better tenant retention, fewer angers, and even boost your reputation as a landlord.
Exhaustive tenant screening could take some time. Would you like to enhance your tenant screening in Matthews by having professionals manage this? Please contact Real Property Management Experts. Our excellent services include a streamlined screening process, ensured legal compliance, and so forth. Contact us online or call 704-220-0110 for expert property management services.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
