Tenant screening is one of the most critical steps in rental property management, but it’s easy to fall into traps that could lead to costly issues later on. When it comes to making decisions, letting personal biases influence your judgment or neglecting essential parts of the background check can result in significant consequences. Overlooking these key steps in the screening process can bring about significant issues, including late payments, property damage, high turnover, and even legal complications.
On the positive side, avoiding these mistakes can help you attract high-quality tenants and keep your properties running smoothly. Below are some of the most common tenant screening mistakes, along with practical tips on how to stay out of them.
Mistake #1: Failing to Screen Consistently
Maintaining consistency is the key principle for effective tenant screening. A significant part of consistency is ensuring that you use the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. When it comes to selecting tenants, the risks are significant. Not maintaining consistency and objectivity in this process can result in lost opportunities to discover the ideal tenant and may expose you to possible legal issues related to discrimination.
Embarking on legal action can be a lengthy and expensive endeavor, and it’s a path that every rental property owner should aim to avoid. Several state and federal laws prohibit discrimination in housing. It’s essential to understand how these regulations affect you and to ensure that your screening process adheres to them.
Mistake #2: Not Checking the Right References
Another common mistake during screening is not taking time to verify the correct references. When starting on the journey of the application process, you need to collect personal and professional references from prospective tenants in addition to previous landlords. Employment history, financial references, and personal character references are all appropriate types of references to ask for. So, make it a point to contact all of these references and ask the right questions.
For instance, you might want to ask them how long they’ve known the applicant, their job performance, how well they care for their current living space, and if they’ve discovered any concerning conduct. Tailor your list of questions based on the specific type of reference you are dealing with.
Mistake #3: Overlooking Credit and Background Checks
A third common mistake in tenant screening is neglecting to run credit and background checks on the applicant. Both assessments are quite standard in rental markets nationwide, but some property owners and managers keep disregarding this chance to learn valuable information about their renters.
Credit and background checks tell a story about an individual and can help you identify possible red flags, such as prior evictions, criminal history, or financial difficulties. Although not every unfavorable detail on a credit report or a background check guarantees that an application will be denied, these assessments do give you 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 failing to thoroughly review a prospective tenant’s rental background. Rental history is crucial as it provides insights into a renter’s likely future behavior.
As you explore the rental history, be vigilant for red flags like late payments, property damage, and other lease agreement violations. Although it’s unwise to rely solely on a previous landlord’s report of a person, especially if there were disagreements during the rental period, it can offer useful perspectives into how the applicant is likely to behave as a renter.
Mistake #5: Inadequate Communication with Applicants
At last, one final mistake rental property owners and managers make during the screening process is the failure to communicate clearly and consistently with the applicant. Searching for a rental home can be a stressful experience for renters, and it’s all too common for irritation to escalate into a storm of negative feelings. Keep in mind that your renter’s experience starts with that initial interaction and carries on throughout your association, regardless of how long it lasts.
To foster a positive relationship with your tenant, begin by emphasizing your application criteria, schedules, and how your decision will be communicated. By adopting this method, you can avoid misunderstandings that might leave applicants feeling discouraged or unhappy and result in negative reviews.
Get Your Screening Process Right!
By adopting these tips and strategies, you can effortlessly avoid the top mistakes rental property owners and managers make during the screening process. This may give rise to greater tenant retention, reduced stress, and even boost your reputation as a landlord.
Comprehensive tenant screening requires a significant investment of time and effort. Looking to hand over this task to the experts and elevate your tenant screening in Forney experience? Get connected with Real Property Management NorthStar. Our exceptional services involve a streamlined screening process, guaranteed compliance with legal standards, and more. Contact us online or call 469-745-8199 for expert property management services.
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