Tenant screening is, undoubtedly, one of the most important steps in rental property management, but, having said that, it’s fairly simple to make mistakes that could bring about very expensive headaches after a while. Whether it’s permitting personal biases to influence decisions or neglecting essential parts of the background check, leaving undone key steps in the screening process can provoke major issues such as late payments, property damage, high turnover, and even legal complications.
The fantastic news is that avoiding these mistakes can greatly help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and many practical tips on how to totally avoid them.
Mistake #1: Failing to Screen Consistently
Consistency is the pertinent key to effective tenant screening. A major part of consistency is making certain that you are exercising the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are plenty 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 lengthy and financially exorbitant and a negative aftermath all rental property owners should work actively to avoid. A number of state and federal laws prohibit discrimination in housing, and it is critically important to understand how those laws apply to you and to consistently 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 earnestly 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. Later, make certain to contact all of these references and ask the right questions.
For illustration, 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 knew. Depending on the type of reference, you should fashion your list of questions appropriately.
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, as a rule, standard in rental markets nationwide, but, in reality, many property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell an insightful story referring to a person and can help you identify possible red flags, for illustration 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 do endow you with what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Most probably, the greatest mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is critically important to verify due to the fact that it can give you awareness and valuable insights into a renter’s likely future behavior.
When examining rental history, make certain to scrupulously watch for potential red flags, by way of example late payments, property damage, and other lease agreement violations. While your entire decision should not be dependent on a previous landlord’s report of a person, specifically if there were disagreements during the rental period, it can certainly provide worthy insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One final thing to keep in mind, 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 easily develop into bad feelings. Always remember that your renter’s experience actually 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, make a successful start with transparency on your application requirements, timelines, and how your decision will be communicated. In this manner, you can carefully avoid misunderstandings that could frustrate or scare off applicants and result in negative reviews.
Get Your Screening Process Right!
By employing these tips and strategies, you can successfully avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can develop into better tenant retention, fewer clashes, and even boost your reputation as a landlord.
Exhaustive tenant screening can be very time-consuming. If you’d wish to leave this task to professionals and properly enhance your tenant screening in Charlottesville, contact Real Property Management Presidential. Our fine services include a streamlined screening process, full compliance with all housing laws, and much more! Contact us online or call 434-422-5591 for reliable 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.
