Tenant screening is one of the most critical steps in rental property management, but it’s easy to make blunders that could cost a lot of money and time in the long run. Whether it’s letting personal biases affect choices or skipping essential parts of the background check, overlooking key steps in the screening process may trigger significant issues, including late payments, property damage, high turnover, and even legal complications.
Providentially, avoiding these mistakes can help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes, along with practical tips on how not to make them.
Mistake #1: Failing to Screen Consistently
The key to effective tenant screening is consistency. Making sure that you use the same criteria for every applicant is a big part of being consistent. You shouldn’t let your emotions or personal biases influence your decisions. A lot of state and federal laws say that housing discrimination is illegal. It is important to know how these laws affect you and make sure that your screening process is legal.
Legal action takes a lot of time and money, so all rental property owners should do everything they can to avoid it. A lot of state and federal laws prohibit discrimination in housing. It is important to know how these laws affect you and make sure that your screening process is legal.
Mistake #2: Not Checking the Right References
One more common mistake during screening is failing to verify the correct references. As part of the application process, you ought to request personal and professional references from prospective tenants, along with previous landlords. Employment history, financial references, and personal character references are all suitable types of references to request. Then, keep in mind to call all of these references and ask the right questions.
For illustration, you could question them about how long they’ve known the applicant, their job performance, how well they care for their current living space, and if they’ve seen any suspicious activity. Depending on the type of reference, you should customize your list of questions accordingly.
Mistake #3: Overlooking Credit and Background Checks
A third big mistake in tenant screening is failing to run credit and background checks on the applicant. Both assessments are relatively normal in rental markets nationwide, but some property owners and managers still neglect this opportunity to learn valuable information about their renters.
Credit and background checks tell a story about an individual and can help you identify possible red flags, such as prior evictions, criminal history, or financial difficulties. Even though not every bad thing on a credit report or a background check means an application will be turned down, these screenings do give you what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Perhaps the worst mistake a rental property manager can make is not checking a potential applicant’s rental history. Rental history is imperative to inspect because it can deliver information about a renter’s likely future behavior.
When checking rental history, be aware of possible red flags, such as late payments, property damage, and other lease agreement violations. While a previous landlord’s report of a person shouldn’t be the only thing you consider, especially if there were disagreements during the rental period, it can give you a good idea of how the applicant is likely to behave as a renter.
Mistake #5: Inadequate Communication with Applicants
Lastly, the final mistake rental property owners and managers make during the screening process is failing to communicate clearly and consistently with the applicant. Finding a rental home can be a stressful experience for renters, and anger can quickly turn into negative feelings. Remember that your renter’s experience starts with the first time they talk to you and goes on throughout your association, irrespective of its duration.
To foster a positive relationship with your tenant, start on the right foot by being transparent about your application requirements, due dates, and how your decision will be communicated. In this manner, you can avoid misunderstandings that could make applicants angry or turn them down, which could result in negative reviews.
Get Your Screening Process Right!
By adopting these tips and strategies, you can simply avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can lead to better tenant retention, fewer headaches, and even boost your reputation as a landlord.
It may take some time to do a thorough tenant screening. Want to hire pros to do this job and improve your tenant screening in Bainbridge? Communicate with Real Property Management Valor Team. As part of our high-quality services, we streamline the screening process, make sure we follow the law, and more. Contact us online or call 440-534-6700 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.
