Tenant screening is, unquestionably, one of the most important steps in rental property management, but, be that as it may, it’s extremely easy to make mistakes that could bring about unreasonable and expensive headaches henceforth. Whether it’s letting personal biases influence decisions or missing essential parts of the background check, leaving out key steps in the screening process can cause major issues such as late payments, property damage, high turnover, and even legal complications.
The excellent news is that avoiding these mistakes can tremendously help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and multiple practical tips on how to, without a hitch, avoid them.
Mistake #1: Failing to Screen Consistently
Consistency is the central key to effective tenant screening. A significant part of consistency is making sure that you are actually using the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are so many risks of failing to screen consistently and with objectivity, a few of which are missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both time-wasting and highly-priced, and an adverse conclusion all rental property owners should work actively to avoid. A lot of 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 failing to check the right references. As part of the application process, you should ask prospective tenants for personal and professional references apart from previous landlords. Employment history, financial references, and personal character references are all more suitable types of references to impose. On the other hand, never forget to surely contact all of these references and ask the right questions.
To cite 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 learned. Mostly depending on the type of reference, you should style 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 normally standard in rental markets nationwide, but, in reality, a lot of property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell an enlightening story about a person and can help you identify possible red flags, like, 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 turning down an application, these checks do provide you with exactly what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Perhaps the biggest mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is critical to conduct owing to the fact it can give you beneficial insights into a renter’s likely future behavior.
When verifying rental history, safeguard to properly watch for potential red flags, take for example late payments, property damage, and other lease agreement violations. While your entire decision should not be formed from a previous landlord’s report of a person, mainly if there were disagreements during the rental period, it can give you advantageous insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One last matter to consider, 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 quickly morph into bad feelings. Bring to mind that your renter’s experience actually starts with the first interaction with you and will continue throughout your association, it doesn’t matter how 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. Along this line, you can properly avoid misunderstandings that could frustrate or dishearten applicants and result in negative reviews.
Get Your Screening Process Right!
By taking advantage of 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 set you up for better tenant retention, fewer burdens, and even boost your reputation as a landlord.
Appropriate tenant screening can be painstakingly difficult and time-consuming. If you’d rather decide to leave this task to professionals and greatly enhance your tenant screening in Marietta, contact Real Property Management Cambridge. Our top-notch services include a streamlined screening process, total compliance with all housing laws, and much more! Contact us online or call 770-527-6767 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.
