Tenant screening is one of the most critical steps in rental property management, yet it’s simple to make mistakes that could cause you a lot of trouble later on. Not following key steps in the screening process can lead to significant issues, including late payments, property damage, high turnover, and even legal complications. This can happen if you let personal biases affect your decisions or miss essential parts of the background check.
Happily, avoiding these mistakes can help you attract high-quality tenants and keep your properties running smoothly. These are some of the most common tenant screening mistakes, along with practical tips on how to avoid them.
Mistake #1: Failing to Screen Consistently
The key to effective tenant screening is being consistent. One important component of being consistent is making sure that you utilize the same criteria for all applicants and don’t let your emotions or personal biases influence your decisions. If you don’t screen regularly and objectively, you could miss out on a fantastic renter and face litigation for discrimination.
Legal action takes a lot of time and money, and all rental property owners should do everything they can to avoid it. Several state and federal laws prohibit discrimination in housing, and it is critical to know how these regulations apply to you and to keep a compliant screening process.
Mistake #2: Not Checking the Right References
Not verifying the correct references is another common mistake during screening. As part of the application process, you should ask for 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 request. After that, make sure to get in touch with all of these references and ask the right questions.
You may question them, for example, how long they’ve known the applicant, how well they do their job, how well they care for their current living space, and if they’ve seen any negative signs. You should change your list of questions based on the type of reference you have.
Mistake #3: Overlooking Credit and Background Checks
A third big mistake in tenant screening is ignoring to run credit and background checks on the applicant. Both assessments are quite common in rental markets nationwide, but some property owners and managers still don’t take advantage of this chance 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. While not every bad thing on a credit report or a background check means that you have to turn down an application, these checks do offer you what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
One of the worst mistakes a rental property manager can make is not checking a potential applicant’s rental history. Checking rental history is imperative since it can give you insight into a renter’s likely future behavior.
When looking at a rental history, keep an eye out for possible red flags, including late payments, damage to the property, and other lease agreement violations. You shouldn’t rest your entire judgment on a previous landlord’s report about a person, primarily if there were disagreements during the rental period. However, it can give you a good idea of how the applicant is likely to behave as a renter.
Mistake #5: Inadequate Communication with Applicants
Finally, a last mistake rental property owners and managers make during the screening process is failing to communicate clearly and consistently with the applicant. Locating a rental home can be a stressful experience for renters, and their frustration can quickly turn into negative feelings. Keep in mind that your renter’s experience starts with the first time they spoke to you and will last throughout your association, no matter how long it is.
To foster a positive relationship with your tenant, start on the right foot by being transparent about your application requirements, timelines, and how your decision will be communicated. In this way, you can avoid misunderstandings that could frustrate or discourage applicants and result in negative reviews.
Get Your Screening Process Right!
By utilizing these tips and strategies, you can straightforwardly avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can lead to better tenant retention, make your life easier, and even boost your reputation as a landlord.
In-depth tenant screening can be laborious. Want to improve your tenant screening in Keller and let professionals handle this job? Communicate with Real Property Management 360. Our quality services offer a streamlined screening process, guarantee legal compliance, and more. Contact us online or call 817-502-3588 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.
