Tenant screening is, no doubt, one of the most important steps in rental property management, but, in actuality, it’s extremely simple to make mistakes that could set up uneconomically expensive headaches in the future. Whether it’s letting personal biases influence decisions or neglecting essential parts of the background check, turning a blind eye to key steps in the screening process can elicit major issues such as late payments, property damage, high turnover, and even legal complications.
The amazing news is that avoiding these mistakes can hugely help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and a bunch of practical tips on how to get away from them.
Mistake #1: Failing to Screen Consistently
Consistency is the essential key to effective tenant screening. An important part of consistency is making absolutely sure that you are keeping and using the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are innumerable risks of failing to screen consistently and objectively, a few of which are missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both cumbersome and unprofitably expensive, and an adverse outcome all rental property owners should work actively to avoid. Many state and federal laws prohibit discrimination in housing, and it is beneficial to understand how those laws apply to you and to always keep your screening process in compliance.
Mistake #2: Not Checking the Right References
One other top mistake during screening is forgetting to check the right references. As part of the application process, you should earnestly ask prospective tenants for personal and professional references plus previous landlords. Employment history, financial references, and personal character references are all fitting types of references to look for. But later on, make sure to definitely contact all of these references and ask the right questions.
Such as, for example, 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 aware of. Depending largely on the type of reference, you should rework your list of questions accordingly.
Mistake #3: Overlooking Credit and Background Checks
A third big mistake in tenant screening is neglecting to run credit and background checks on the applicant. Both assessments are usually standard in rental markets nationwide, although many property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell a pertinent story about a person and can help you identify possible red flags, that is to say 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 turning down an application, these checks, without doubt, give you just what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Certainly, the most serious mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is beneficial to check on, taking into account it can give you astute insights into a renter’s likely future behavior.
When verifying rental history, make sure to properly watch for potential red flags including late payments, property damage, and other lease agreement violations. While your entire decision should not be wholly based on a previous landlord’s report of a person, particularly if there were disagreements during the rental period, it can endow helpful insights into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One final matter 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 just as easily morph into bad feelings. Consider that your renter’s experience begins exactly 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, have a very successful start with transparency on your application requirements, timelines, and how your decision will be communicated. Accordingly, you can effectively avoid misunderstandings that could frustrate or frighten applicants and result in negative reviews.
Get Your Screening Process Right!
By sticking to and implementing these tips and strategies, you can plainly avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can develop better tenant retention, fewer hindrances, and even boost your reputation as a landlord.
Precise tenant screening can be laboriously time-intensive. If you would rather choose to leave this task to professionals and properly enhance your tenant screening in Converse, contact Real Property Management First Class. Our splendid services count in a streamlined screening process, proper compliance with all housing laws, and much more! Contact us online or call 210-444-2070 for dependable 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.
