Tenant screening is definitely one of the most important steps in rental property management, but it is, without a doubt, very easy to make mistakes that could give rise to very expensive headaches henceforth. Whether it’s letting personal biases influence decisions or skipping essential parts of the background check, failing to see key steps in the screening process can contribute to major issues such as late payments, property damage, high turnover, and even legal complications.
The exciting news is that avoiding these mistakes can hugely help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and some practical tips on how to stave them off.
Mistake #1: Failing to Screen Consistently
Consistency is the major key to effective tenant screening. A substantial part of consistency is seeing to it that you are utilizing the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are certainly numerous risks of failing to screen consistently and without bias, encompassing missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both lengthy and unreasonably expensive and a ramification all rental property owners should work actively to avoid. A lot of state and federal laws prohibit discrimination in housing, and it is crucial to understand how those laws apply to you and 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 clearly ask prospective tenants for personal and professional references including previous landlords. Employment history, financial references, and personal character references are all the best types of references to ask for. On the other hand, see to it that you actually contact all of these references and ask the right questions.
As 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. Based on the type of reference, you should adapt your list of questions properly.
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 usually standard in rental markets nationwide, but despite that, many property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell a plain story concerning a person 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 is an automatic cause for rejection of an application, these checks do provide you what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Maybe the greatest mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is relevant to inquire into, owing to the fact that it can give you a clearer look into a renter’s likely future behavior.
When verifying rental history, determine to watch for potential red flags, like, for instance, late payments, property damage, and other lease agreement violations. While your entire decision should not be built on a previous landlord’s report of a person, specifically if there were disagreements during the rental period, it can, without question, 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 easily amplify into bad feelings. Bring to mind that your renter’s experience kicks off 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, start off well with transparency on your application requirements, timelines, and how your decision will be communicated. Along this line, you can avoid misunderstandings that could frustrate or dishearten applicants and result in negative reviews.
Get Your Screening Process Right!
By bearing in mind and applying 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 induce better tenant retention, fewer complexities, and even boost your reputation as a landlord.
Meticulous tenant screening can be financially wasteful. If you’d determined to leave this task to professionals and certainly enhance your tenant screening in Inverness, contact Real Property Management Diversified. Our prime services encompass a streamlined screening process, complete compliance with all housing laws, and much more! Contact us online or call 352-854-2221 for 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.
