Tenant screening is definitely one of the most important steps in rental property management, but at the same time, it’s very easy to make mistakes that could cause excessive headaches in the course of time. Whether it’s letting personal biases influence decisions or missing essential parts of the background check, passing over key steps in the screening process can result in 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 a bunch of practical tips on how to carefully avoid them.
Mistake #1: Failing to Screen Consistently
Consistency is the essential key to effective tenant screening. A fundamental part of consistency is always seeing to it that you are keeping and utilizing the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are a number of risks of failing to screen consistently and objectively, which include missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both time and labor-consuming as well as financially harmful, and an adverse result all rental property owners should work actively to avoid. Most state and federal laws prohibit discrimination in housing, and it is beneficial to understand how those laws apply to you and to properly 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 mindfully ask prospective tenants for personal and professional references including previous landlords. Employment history, financial references, and personal character references are all suitable types of references to require. Next, make sure to properly 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 discovered. Based on the type of reference, you should tailor 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 appropriately standard in rental markets nationwide, but, on the other hand, many property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell a revealing story pertaining 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 refusal of an application, these checks certainly give you precisely what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Practically the most grievous mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is beneficial to check seeing as it can give you invaluable insights into a renter’s likely future behavior.
When probing rental history, see to it to alertly watch for potential red flags including late payments, property damage, and other lease agreement violations. While your entire decision should not be reliant on a previous landlord’s report of a person, especially if there were disagreements during the rental period, it can endow pertinent insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One final matter to take note of, 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 rapidly turn into bad feelings. Take note that your renter’s experience is initiated 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 to a good start with transparency on your application requirements, timelines, and how your decision will be communicated. By doing so, you can satisfactorily avoid misunderstandings that could frustrate or frighten off applicants and result in negative reviews.
Get Your Screening Process Right!
By applying these tips and strategies, you can happily avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can generate better tenant retention, fewer hindrances, and even boost your reputation as a landlord.
Careful tenant screening can be utterly time-consuming. If you’d rather choose to leave this task to professionals and properly enhance your tenant screening in Rolesville, contact Real Property Management Raleigh. Our competent services include a streamlined screening process, proper compliance with all housing laws, and much more! Contact us online or call 919-481-0008 for reputable 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.
