Though it’s easy to make blunders that could cause expensive problems down the road, tenant screening is one of the most critical steps in rental property management. Significant issues, including late payments, property damage, high turnover, and even legal complications, can arise when essential parts of the background check and key steps in the screening process are skipped or when personal biases impact decision-making.
The bright side is that avoiding these mistakes can help you attract high-quality tenants and keep your properties running smoothly. Listed below are a few of the most common tenant screening mistakes, along with practical tips on how to circumvent them.
Mistake #1: Failing to Screen Consistently
Tenant screening is most effective when done consistently. Make sure you utilize the same criteria for every applicant without allowing your emotions or personal biases to influence your decisions. This will ensure consistency. Not screening consistently and objectively can lead to a number of problems, such as losing out on a fantastic renter and possibly being sued for discrimination.
All landlords should do all in their power to avoid legal action since it is a costly and time-consuming ordeal. It is critical to be aware of which laws pertain to your situation and to keep your screening procedure compliant, as numerous federal laws prohibit discrimination in housing.
Mistake #2: Not Checking the Right References
Another common mistake during screening is failing to verify the correct references. As part of the application process, you should request personal and professional references from prospective tenants in addition to previous landlords. Employment history, financial references, and personal character references are all suitable types of references to request. Then, be sure to contact all of these references and ask the right questions.
For example, you could ask them how long they’ve known the applicant, their job performance, how well they care for their current living space, and if they’ve noticed any red flags. Depending on the type of reference, you should customize your list of questions accordingly.
Mistake #3: Overlooking Credit and Background Checks
Failing to run credit and background checks on the applicant is another typical mistake in tenant screening. Both assessments are relatively normal in rental markets nationwide, but some property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell a story about 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 assessments do give you what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Not checking a tenant’s credit history is one of the worst mistakes a rental property manager can make. Rental history is critical to inspect because it can give you insight into a renter’s likely future behavior.
Inspect the rental history carefully for any warning signs, such as a history of late payments, damage to the property, and other lease agreement violations. Even though it is important not to base your entire decision on a previous landlord’s report of a person, mostly if there were disagreements during the rental period, it can offer valuable insight into how the applicant is likely to behave as a renter.
Mistake #5: Inadequate Communication with Applicants
In the end, the last mistake rental property owners and managers make during the screening process is failing to communicate clearly and consistently with the applicant. Searching for a rental home can be a stressful experience for renters, and annoyance can straightforwardly escalate into negative feelings. Keep in mind that your renter’s experience starts with the first communication with you and will continue throughout your association, no matter how long it lasts.
To foster a positive relationship with your tenant, start on the right foot by being transparent about your application necessities, timescales, and how your decision will be communicated. This approach can help you avoid misunderstandings that could upset or dishearten applicants and result in negative reviews.
Get Your Screening Process Right!
By adopting these tips and strategies, you can effortlessly avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can result in better tenant retention, fewer annoyances, and even boost your reputation as a landlord.
Thorough tenant screening could take some time. Would you like to improve your tenant screening in Huntersville by having experts handle this? Please contact Real Property Management Charlotte Metro. Our quality services include a streamlined screening process, ensured legal compliance, and so forth. Contact us online or call 704-919-1344 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.
