Tenant screening is one of the most important steps in rental property management, but really, it’s certainly easy to make mistakes that could bring on uneconomical issues subsequently. Whether it’s letting personal biases influence decisions or skipping essential parts of the background check, failing to apply key steps in the screening process can trigger major issues such as late payments, property damage, high turnover, and even legal complications.
The wonderful news is that avoiding these mistakes can greatly help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and lots of practical tips on how to shun them.
Mistake #1: Failing to Screen Consistently
Consistency is the essential key to effective tenant screening. A large part of consistency is making sure that you are adhering to the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are lots of risks of failing to screen consistently and objectively, which, sadly, include missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both time-consumingly drawn-out and high-cost and an effect all rental property owners should work actively to avoid. Plenty of state and federal laws prohibit discrimination in housing, and it is necessary to understand how those laws apply to you and to always 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 ask prospective tenants for personal and professional references along with previous landlords. Employment history, financial references, and personal character references are all ideal types of references to require. Afterward, guarantee to actually contact all of these references and ask the right questions.
As an illustration, 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 found. Contingent upon the type of reference, you should adjust your list of questions in accordance with that.
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 reasonably standard in rental markets nationwide, yet multiple property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell a story in connection with a person and can help you identify possible red flags, like 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 refusal of an application, these checks do give you just what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Potentially the biggest mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is necessary to explore for the reason that it can give you a deeper look into a renter’s likely future behavior.
When considering rental history, make sure to watch for potential red flags such as late payments, property damage, and other lease agreement violations. While your entire decision should not be dictated by a previous landlord’s report of a person, principally if there were disagreements during the rental period, it can present useful insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
At length, 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 frustrations can oftentimes easily grow into bad feelings. Bear in mind that your renter’s experience is initiated 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, have a successful start with transparency on your application requirements, timelines, and how your decision will be communicated. In this fashion, you can avoid misunderstandings that could frustrate or put off applicants and result in negative reviews.
Get Your Screening Process Right!
By sticking to these tips and strategies, you can very easily avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can set off better tenant retention, fewer dilemmas, and even boost your reputation as a landlord.
Correct tenant screening can be demandingly time-consuming. If you’d choose instead to leave this task to professionals and essentially enhance your tenant screening in Mission Valley, contact Real Property Management Realevate Specialists. Our excellent services cover a streamlined screening process, compliance with all housing laws, and much more! Contact us online or call 858-997-2100/951-461-0100 for proficient 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.
