Tenant screening is one of the most important steps in rental property management, though it’s simple to make mistakes that could bring about pricy headaches later. Whether it’s letting personal biases influence decisions or skipping essential parts of the background check, missing key steps in the screening process can create major issues such as late payments, property damage, high turnover, and even legal complications.
The great news is that 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 and various practical tips on how to steer clear of them.
Mistake #1: Failing to Screen Consistently
Consistency is the key to effective tenant screening. A large part of consistency is making it a point that you are observing and applying the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are various risks of failing to screen consistently and impartially, counting missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both laboriously time-consuming and high-priced and a result all rental property owners should work actively to avoid. Numerous state and federal laws prohibit discrimination in housing, and it is vital to understand how those laws apply to you and to keep your screening process in compliance.
Mistake #2: Not Checking the Right References
Another top mistake during screening is failing to check the right references. As part of the application process, you should ask prospective tenants for personal and professional references together with previous landlords. Employment history, financial references, and personal character references are all ideal types of references to call for. In addition, make it a point to really contact all of these references and ask the right questions.
For instance, 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 saw. Dependent on the type of reference, you should fit your list of questions suitably.
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 sensibly standard in rental markets nationwide, nevertheless, many property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell a story with regard to a person and can help you identify possible red flags, namely 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 denial of an application, these checks do present you with what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Possibly the biggest mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is vital to look into since it can give you facts and insights into a renter’s likely future behavior.
When verifying rental history, be certain to watch for potential red flags, in particular late payments, property damage, and other lease agreement violations. While your entire decision should not be on the basis of a previous landlord’s report of a person, namely if there were disagreements during the rental period, it can provide beneficial insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
Lastly, 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 easily increase into bad feelings. Take into consideration that your renter’s experience 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, get off on the right foot with transparency on your application requirements, timelines, and how your decision will be communicated. In doing this, you can avoid misunderstandings that could frustrate or dissuade applicants and result in negative reviews.
Get Your Screening Process Right!
By using 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 result in better tenant retention, fewer concerns, and even boost your reputation as a landlord.
Suitable tenant screening can be quite time-consuming. If you’d select to leave this task to professionals and properly enhance your tenant screening in Cary, contact Real Property Management Excellence. Our excellent services include a streamlined screening process, proper compliance with all housing laws, and much more! Contact us online or call 919-827-1107 for skilled 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.
