Tenant screening is one of the most critical steps in rental property management; however, it is prone to mistakes that could lead to considerable challenges down the line. Whether it’s allowing personal biases to influence judgments or disregarding essential parts of the background check, missing key steps in the screening process may result in significant issues, including late payments, harm to properties, high turnover, and even legal complications.
The good news is that avoiding these mistakes can help you attract high-quality tenants and keep your properties running smoothly. This article outlines the most common tenant screening mistakes, along with practical tips for their avoidance.
Mistake #1: Failing to Screen Consistently
Ensuring consistency is essential for effective tenant screening. Consistency hinges on the application of uniform standards to all applicants, avoiding the influence of emotions or personal biases to influence your decisions. Inconsistent and subjective screening poses several risks, including the potential loss of a valuable tenant and the risk of facing discrimination lawsuits.
Legal action can be time-consuming and costly, making it essential for all rental property owners to proactively seek to avoid it. Numerous state and federal laws prohibit discrimination in housing, underscoring the importance of understanding their relevance to your circumstances and maintaining a thorough compliance screening process.
Mistake #2: Not Checking the Right References
A common mistake during screening is failing to verify the correct references. In the application process, it is recommended to collect personal and professional references from prospective tenants along with previous landlords. Employment history, financial references, and personal character references are all the right kinds of references to solicit. Subsequently, ensure that you reach out to all of these references and ask the right questions.
For example, you might inquire about how long they’ve known the applicant, their job performance, how well they care for their current living space, and any observations of red flags. Tailor your set of inquiries based on the specific type of reference.
Mistake #3: Overlooking Credit and Background Checks
A third big mistake in tenant screening is neglecting to run credit and background checks on the applicant. Both assessments are typically standard in rental markets nationwide, but some property owners and managers keep missing this opportunity to learn valuable information about their renters.
Credit and background checks offer facts about an individual and can help you identify possible red flags, such as prior evictions, criminal history, or financial difficulties. While not every negative item on a credit report or a background check will result in the denial of an application, these examinations do give you what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Perhaps the worst mistake a rental property manager can make is not taking steps to confirm an upcoming applicant’s rental history. Rental history is necessary as it gives information into a renter’s likely future behavior.
When assessing rental history, it is crucial to be vigilant for potential warning signs, such as late payments, property damage, and other lease agreement violations. While one shouldn’t just rely on a previous landlord’s report of a person, especially if there were disagreements during the rental period, it can give essential information into how the applicant is likely to behave as a renter.
Mistake #5: Inadequate Communication with Applicants
At long last, the final mistake rental property owners and managers make during the screening process is neglecting to communicate clearly and consistently with the applicant. The procedure of getting approved for a rental home can be a stressful experience for renters, and frustration may quickly escalate into negative feelings. Keep in mind that your renter’s experience starts with the initial interaction with you and will continue throughout your association, regardless of the time frame.
To foster a positive relationship with your tenant, begin by clearly outlining your application criteria, deadlines, and how your decision will be communicated. This approach helps avoid misunderstandings that could potentially dishearten applicants and result in negative reviews.
Get Your Screening Process Right!
By carrying out these tips and strategies, you can effectively avoid the top mistakes rental property owners and managers make during the screening process. This can ultimately result in enhanced tenant retention, fewer difficulties, and even boost your reputation as a landlord.
Complete tenant screening can require significant effort. Looking to entrust this responsibility to professionals and enhance your tenant screening in Hampton? Engage with Real Property Management Tidal. We offer exceptional services featuring a streamlined screening process, assured compliance with legal standards, and more. Contact us online or call 757-206-2071 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.
