Tenant screening is, beyond doubt, one of the most important steps in rental property management, but, at the same time, it’s too easy to make mistakes that could result in excessive headaches down the line. Whether it’s permitting personal biases to influence decisions or forgetting essential parts of the background check, deliberately ignoring key steps in the screening process can develop into major issues such as late payments, property damage, high turnover, and even legal complications.
The good news is that avoiding these mistakes can extremely help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and plenty of practical tips on how to properly avoid them.
Mistake #1: Failing to Screen Consistently
Consistency is the central key to effective tenant screening. A large part of consistency is making certain that you are making use of the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are a lot of 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 time-wasting and financially harmful, and an adverse effect all rental property owners should work actively to avoid. A few state and federal laws prohibit discrimination in housing, and it is pertinent to understand how those laws apply to you and to consistently keep your screening process in compliance.
Mistake #2: Not Checking the Right References
One other top mistake during screening is neglecting to check the right references. As part of the application process, you should heedfully ask prospective tenants for personal and professional references as well as previous landlords. Employment history, financial references, and personal character references are all appropriate types of references you can require. After that, make absolutely sure to contact all of these references and ask the right questions.
Take 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 perceived. Determined by the type of reference, you should improve your list of questions accordingly.
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 typically standard in rental markets nationwide, but, on the other hand, some property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell an informative story in reference to a person and can help you identify possible red flags, take for example 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 disapproving an application, these checks certainly give you what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Maybe the most terrible mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is critical to check given that it can give you astute insight into a renter’s likely future behavior.
When examining rental history, see to it you meticulously watch for potential red flags, for instance, late payments, property damage, and other lease agreement violations. While your entire decision should not be grounded in a previous landlord’s report of a person, primarily if there were disagreements during the rental period, it can contribute gainful insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One last matter to think about, 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 completely generate bad feelings. Be mindful that your renter’s experience often begins 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. Thus, you can easily avoid misunderstandings that could frustrate or intimidate applicants and result in negative reviews.
Get Your Screening Process Right!
By implementing these tips and strategies, you can satisfyingly avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can establish better tenant retention, fewer ordeals, and even boost your reputation as a landlord.
Accurate tenant screening can be troublesome and time-consuming. If you’d rather prefer to leave this task to professionals and update your tenant screening in Crowley, contact Real Property Management Oasis. Our top-caliber services count in a streamlined screening process, full adherence to all housing laws, and much more! Contact us online or call 817-581-1574 for competent 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.
