Tenant screening is one of the most important steps in rental property management, yet it’s very easy to make mistakes that could elicit extravagant problems in due course. Whether it’s letting personal biases influence decisions or skipping essential parts of the background check, missing key steps in the screening process can generate major issues such as late payments, property damage, high turnover, and even legal complications.
The terrific 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 several practical tips on how to effectively avoid them.
Mistake #1: Failing to Screen Consistently
Consistency is the essential key to effective tenant screening. A vital part of consistency is seeing to it that you are applying the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are certain risks of failing to screen consistently and objectively, constituting missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both time-wasting and extremely expensive and an end result all rental property owners should work actively to avoid. A lot of state and federal laws prohibit discrimination in housing, and it is principally important to understand how those laws apply to you and to properly 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 openly ask prospective tenants for personal and professional references apart from previous landlords. Employment history, financial references, and personal character references are all great types of references to obtain. Together with that, make sure to surely contact all of these references and ask the right questions.
For 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 observed. Based on the type of reference, you should personalize your list of questions appropriately.
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 normally standard in rental markets nationwide, but, even so, majority of property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell a deeper story regarding a person and can help you identify possible red flags, similar to 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 declining an application, these checks do give you precisely what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Likely the biggest mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is principally important to check considering that it can give you pertinent information regarding a renter’s likely future behavior.
When monitoring rental history, always keep in mind to watch for potential red flags, for illustration late payments, property damage, and other lease agreement violations. While your entire decision should not be formulated on a previous landlord’s report of a person, particularly if there were disagreements during the rental period, it can provide productive insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
On that matter, 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 quickly rise into bad feelings. Bear in mind that your renter’s experience 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, start right with transparency on your application requirements, timelines, and how your decision will be communicated. Thereby, you can avoid misunderstandings that could frustrate or discourage applicants and result in negative reviews.
Get Your Screening Process Right!
By paying attention to and implementing these tips and strategies, you can naturally avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can bring in better tenant retention, fewer disputes, and even boost your reputation as a landlord.
Comprehensive tenant screening can be painstakingly time-consuming. If you opt to leave this task to professionals and properly augment your tenant screening in Moorhead, contact Real Property Management Optimum. Our superb services constitute a streamlined screening process, proper compliance with all housing laws, and much more! Contact us online or call 320-289-4649 for fully equipped property management services.
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