Tenant screening is, doubtlessly, one of the most important steps in rental property management, be that as it may, it’s ridiculously easy to make mistakes that could generate unreasonable problems and headaches at some time in the future. Whether it’s letting personal biases influence decisions or negating essential parts of the background check, taking no account of key steps in the screening process can establish major issues such as late payments, property damage, high turnover, and even legal complications.
The excellent news is that avoiding these mistakes can notably help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and considerable practical tips on how to effectively avoid them.
Mistake #1: Failing to Screen Consistently
Consistency is the primary key to effective tenant screening. A major part of consistency is making absolutely sure that you are applying the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are a bunch of risks of failing to screen consistently and objectively, including missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both troublesome and quite expensive, and an unfavorable result all rental property owners should work actively to avoid. Most state and federal laws prohibit discrimination in housing, and it is weighty to understand how those laws apply to you and to make sure to 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 together with previous landlords. Employment history, financial references, and personal character references are all appropriate types of references to ask for. Then after, make sure to contact all of these references and ask the right questions.
Like, 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 detected. Reliant on the type of reference, you should fit 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 properly standard in rental markets nationwide, but, in fact, several property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks show a telling story about a person and can help you identify possible red flags, to cite for instance 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 offer you just what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Maybe the gravest mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is critically important to check insofar as it can give you invaluable insights into a renter’s likely future behavior.
When assessing rental history, safeguard to watch for potential red flags, that is to say, late payments, property damage, and other lease agreement violations. While your entire decision should not be conditional on a previous landlord’s report of a person, exactly if there were disagreements during the rental period, it can give helpful insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One last 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 entirely turn into bad feelings. Keep in mind that your renter’s experience begins with the first interaction with you and will continue throughout your association, however long that may be.
To better foster a positive relationship with your tenant, start with success through transparency on your application requirements, timelines, and how your decision will be communicated. Just like that, you can properly avoid misunderstandings that could frustrate or deter applicants and result in negative reviews.
Get Your Screening Process Right!
By making use of these tips and strategies, you can essentially avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can make better tenant retention, fewer risks, and even boost your reputation as a landlord.
Extensive tenant screening can be time-consuming. If you’d rather choose to leave this task to professionals and improve your tenant screening in Spring, contact Real Property Management Republic. Our ideal services take in a streamlined screening process, utter compliance with all housing laws, and much more! Contact us online or call 281-362-5001 for committed and 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.
