Tenant screening is, undoubtedly, one of the most important steps in rental property management, but in reality, it’s as easy as can be to make mistakes that could create cost-intensive headaches over time. Whether it’s letting personal biases influence decisions or neglecting essential parts of the background check, passing over key steps in the screening process can provoke major issues such as late payments, property damage, high turnover, and even legal complications.
The incredible news is that avoiding these mistakes can immensely 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 keep away from them.
Mistake #1: Failing to Screen Consistently
Consistency is the fundamental key to effective tenant screening. A vital part of consistency is seeing to it that you are sticking to the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are countless risks of failing to screen consistently and objectively, some of which are missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both arduous and incalculably expensive, and an unfavorable issue all rental property owners should work actively to avoid. Most 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
Another top mistake during screening is not being able to check the right references. As part of the application process, you should carefully ask prospective tenants for personal and professional references in conjunction with previous landlords. Employment history, financial references, and personal character references are all desirable types of references to obtain. Later, always make certain to contact all of these references and ask the right questions.
Specifically, 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 sensed. According to the type of reference, you should customize your list of questions suitably.
Mistake #3: Overlooking Credit and Background Checks
A third big mistake in tenant screening is not making sure to run credit and background checks on the applicant. Both assessments are generally standard in rental markets nationwide, nonetheless, most 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, including 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 disapproval of an application, these checks do furnish you with just what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Certainly, the biggest mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is pertinent to assess because it can give you invaluable insights into a renter’s likely future behavior.
When ascertaining rental history, be careful to watch for potential red flags involving late payments, property damage, and other lease agreement violations. While your entire decision should not be based on a previous landlord’s report of a person, definitely if there were disagreements during the rental period, it can grant important insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One last matter to seriously think about, 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 morph into bad feelings. Always keep in mind that your renter’s experience normally starts off with the first interaction with you and will continue throughout your association, no matter how long that may be.
To foster a positive relationship with your tenant, make a good start with transparency on your application requirements, timelines, and how your decision will be communicated. So, you can perfectly avoid misunderstandings that could frustrate or disincline applicants and result in negative reviews.
Get Your Screening Process Right!
By applying these tips and strategies, you can easily avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can bring about better tenant retention, fewer demands, and even boost your reputation as a landlord.
Thorough tenant screening can be tedious. If you would rather see fit to leave this task to professionals and properly enhance your tenant screening in Dutchess County, contact Real Property Management Priority. Our terrific services are inclusive of a streamlined screening process, full adherence to all housing laws, and much more! Contact us online or call 845-363-6776 for trustworthy 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.
