Tenant screening is one of the most critical steps in rental property management; however, it is not without its pitfalls that can result in significant challenges down the line. Whether it’s allowing personal biases to influence decisions or disregarding essential parts of the background check, overlooking key steps in the screening process can lead to significant issues, including late payments, property damage, high turnover, and even legal complications.
The great thing is that avoiding these mistakes can help you attract high-quality tenants and keep your properties running smoothly. Below are several of the most common tenant screening mistakes, accompanied by practical tips on how to prevent them.
Mistake #1: Failing to Screen Consistently
Consistency is essential to effective tenant screening. An important aspect of consistency is guaranteeing that you use the same criteria for every applicant rather than allowing emotions or personal biases to influence your decisions. There are numerous risks associated with neglecting to screen constantly and objectively, including missed opportunities for an excellent tenant and potential lawsuits for discrimination.
Legal action is both laborious and costly and an outcome that all rental property owners should actively work to avoid. Several state and federal laws prohibit discrimination in housing, and it is crucial to comprehend how these laws apply to you and to keep a compliant screening procedure.
Mistake #2: Not Checking the Right References
Another common mistake during screening is failing to verify the correct references. As part of the application process, you need to ask for personal and professional references from prospective tenants besides previous landlords. Employment history, financial references, and personal character references are all suitable types of references to request. Subsequently, ensure that you reach out to all of these references and ask the right questions.
For instance, you could question them about how long they’ve known the applicant, how they perform at work, how well they care for their current living space, and whether they have observed any concerning behaviors. Depending on the type of reference, you should tailor your list of inquiries accordingly.
Mistake #3: Overlooking Credit and Background Checks
One significant mistake in tenant screening is not remembering to run credit and background checks on the applicant. Both assessments are relatively standard in rental markets nationwide, but some property owners and managers continue to overlook this opportunity to learn valuable information about their renters.
Credit and background checks provide valuable insights into an individual’s history, allowing you to identify possible red flags, such as prior evictions, criminal history, or financial difficulties. Although not every adverse entry on a credit report or a background check guarantees the dismissal of an application, these reviews do give you what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
The most significant mistake a rental property manager can make is not checking a potential applicant’s rental history. Rental history is critical to inspect because it can give you insight into a renter’s likely future behavior.
When assessing rental history, it is crucial to remain attentive to possible warning signs, including late payments, property damage, and other lease agreement violations. Although it is unwise to rely solely on a previous landlord’s report of a person, mainly if there were disagreements during the rental period, it can offer important information about how the applicant is likely to behave as a renter.
Mistake #5: Inadequate Communication with Applicants
In the end, the final mistake rental property owners and managers make during the screening process is disregarding to communicate clearly and consistently with the applicant. Applying for a rental home can be a stressful experience for renters, and disappointment can easily escalate into negative feelings. Don’t forget that your renter’s experience starts with the first communication with you and will continue throughout your association, regardless of its duration.
To foster a positive relationship with your tenant, start on the right foot by being clear about your application requirements, timelines, and how your decision will be communicated. This approach helps avoid misunderstandings that could annoy or dishearten applicants and result in negative reviews.
Get Your Screening Process Right!
By implementing these tips and strategies, you can straightforwardly avoid the top mistakes rental property owners and managers make during the screening process. This can ultimately result in improved tenant retention, reduced complications, and even boost your reputation as a landlord.
Thorough tenant screening may require a significant investment of time and resources. Looking to entrust this task to experts and improve your tenant screening in Morrisville? Contact Real Property Management Impact for further assistance. Our excellent services include a streamlined screening process, ensured compliance with law, and so on. Contact us online or call 919-439-8989 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.
