Tenant screening is absolutely one of the most important steps in rental property management, but, in fact, it’s so easy to make mistakes that could bring about unaffordable headaches in due course. Whether it’s allowing personal biases to influence decisions or failing to do essential parts of the background check, letting pass key steps in the screening process can cause major issues such as late payments, property damage, high turnover, and even legal complications.
The greatest news is that avoiding these mistakes can vastly help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and a handful of practical tips on how to prevent them.
Mistake #1: Failing to Screen Consistently
Consistency is the principal key to effective tenant screening. A substantial part of consistency is making certain that you are implementing the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are a number of risks of failing to screen consistently and objectively, some of which are missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both really time-consuming and rather very expensive, and a negative outcome all rental property owners should work actively to avoid. Several state and federal laws prohibit discrimination in housing, and it is critical to understand how those laws apply to you and to continually keep your screening process in compliance.
Mistake #2: Not Checking the Right References
Another top mistake during screening is being unable to check the right references. As part of the application process, you should mindfully ask prospective tenants for personal and professional references together with previous landlords. Employment history, financial references, and personal character references are all appropriate types of references to try to obtain. Afterward, always see to it to really contact all of these references and ask the right questions.
For a case in point, you could ask them how long they’ve known the applicant, their job performance, how well they care for their current living space, and any red flags they were sure of. Based on the type of reference, you should match your list of questions appropriately.
Mistake #3: Overlooking Credit and Background Checks
A third big mistake in tenant screening is failing to carefully run credit and background checks on the applicant. Both assessments are certainly standard in rental markets nationwide, but, in fact, many property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell an informative story about a person and can help you identify possible red flags, for a case in point prior evictions, criminal history, or financial difficulties. While not every negative item on a credit report or a background check is an automatic cause for dismissal of an application, these checks do provide you with exactly what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Perhaps the most serious mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is critically weighty to check into considering that it can give you pertinent insight into a renter’s likely future behavior.
When monitoring rental history, nail down to watch for potential red flags that is to say late payments, property damage, and other lease agreement violations. While your entire decision should not be determined by a previous landlord’s report of a person, certainly if there were disagreements during the rental period, it can furnish productive insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One last thing to take note, a last mistake rental property owners and managers make during the screening process is failing to communicate clearly and consistently with the applicant. Applying for a rental home can be a stressful experience for a renter, and frustration can very quickly build up into bad feelings. Bear in mind that your renter’s experience always starts with the first interaction with you and will continue throughout your association, however long that may be.
To foster a positive relationship with your tenant, embark on a good note with transparency on your application requirements, timelines, and how your decision will be communicated. Thereby, you can, with no trouble, avoid misunderstandings that could frustrate or discourage applicants and result in negative reviews.
Get Your Screening Process Right!
By keeping and applying these tips and strategies, you can naturally avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can bring about better tenant retention, fewer problems, and even boost your reputation as a landlord.
Extensive tenant screening can be labor-consuming as well as time-intensive. If you’re inclined toward leaving this task to professionals and improve your tenant screening in Summerfield, contact Real Property Management Paradise. Our superb services include a streamlined screening process, perfect compliance with all housing laws, and much more! Contact us online or call 352-565-4303 for the best 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.
