Tenant screening is, indeed, one of the most important steps in rental property management, but, on the flip side, it’s quite simple to make mistakes that could produce very expensive headaches hereafter. Whether it’s letting personal biases influence decisions or overlooking essential parts of the background check, glossing over key steps in the screening process can cause major issues such as late payments, property damage, high turnover, and even legal complications.
The happy 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 a few practical tips on how to stay away from them.
Mistake #1: Failing to Screen Consistently
Consistency is the major key to effective tenant screening. A huge part of consistency is completely making sure that you are executing the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are some risks of failing to screen consistently and objectively, just like missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both time-consuming and financially steep, and an unfavorable result all rental property owners should work actively to avoid. Several state and federal laws prohibit discrimination in housing, and it is significant to understand how those laws apply to you and to always keep your screening process in compliance.
Mistake #2: Not Checking the Right References
One other top mistake during screening is failing to check the right references. As part of the application process, you should firmly ask prospective tenants for personal and professional references as well as previous landlords. Employment history, financial references, and personal character references are all ideal types of references to request. Not only that, completely make sure to contact all of these references and ask the right questions.
Particularly, 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 have noticed. Subject to the type of reference, you should amend your list of questions accordingly.
Mistake #3: Overlooking Credit and Background Checks
A third big mistake in tenant screening is forgetting to run credit and background checks on the applicant. Both assessments are satisfactorily standard in rental markets nationwide, however, a lot of property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell a very clear story about a person and can help you identify possible red flags, involving 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 denial of an application, these checks, without question, lend you just what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Often, the colossal mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is relevant to go over because of the fact that it can give you essential insights into a renter’s likely future behavior.
When corroborating rental history, always make sure to carefully watch for potential red flags namely late payments, property damage, and other lease agreement violations. While your entire decision should not be wholly based on a previous landlord’s report of a person, absolutely if there were disagreements during the rental period, it can offer useful insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One final consideration, 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 just morph into bad feelings. Keep in mind that your renter’s experience typically starts 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, make a good start with transparency on your application requirements, timelines, and how your decision will be communicated. In this fashion, you can properly avoid misunderstandings that could frustrate or scare off applicants and result in negative reviews.
Get Your Screening Process Right!
By heedfully applying these tips and strategies, you can absolutely avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can bring into effect better tenant retention, fewer struggles, and even boost your reputation as a landlord.
Comprehensive tenant screening can be really drawn out. If you’d like better to leave this task to professionals and spruce up your tenant screening in Brentwood, contact Real Property Management Generations. Our tip-top services include a streamlined screening process, total compliance with all housing laws, and much more! Contact us online or call 310-907-5646 for reliable 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.
