Tenant screening stands as a critical step in rental property management, but it is easy to commit mistakes that could lead to substantial challenges down the line. Whether it’s letting personal biases influence decisions or missing essential parts of the background check, neglecting key steps in the screening process can cause significant issues, including late payments, property damage, high turnover, and even legal complications.
The positive aspect is that avoiding these mistakes can help you attract high-quality tenants and keep your properties running smoothly. Below are some of the most common tenant screening mistakes, along with practical tips on how not to make them.
Mistake #1: Failing to Screen Consistently
Effective tenant screening depends heavily on consistency. It is essential to maintain consistency by applying the same criteria across all applications, avoiding the influence of emotions or personal biases to influence your decisions. Neglecting to conduct regular and objective screenings presents several risks, such as overlooking opportunities for an excellent tenant and facing potential discrimination claims.
Legal action is both time-consuming and costly, and it is something that all rental property owners should actively try to avoid. Many state and federal laws prohibit discrimination in housing, and it is important that you understand how these laws relate to your situation and maintain a compliant screening process.
Mistake #2: Not Checking the Right References
Another typical mistake during screening involves failing to verify the correct references. As a component of the application process, you need to get personal and professional references from prospective tenants in addition to previous landlords. Employment history, financial references, and personal character references are all suitable kinds of references to request. Subsequently, ensure that you connect with 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
A third significant mistake in tenant screening is ignoring to run credit and background checks on the applicant. Both assessments are fairly common in rental markets nationwide, but some property owners and managers remain unaware of this opportunity to learn valuable information about their renters.
Credit and background checks provide helpful insights about an individual and can help you identify possible red flags, like prior evictions, criminal history, or financial difficulties. While not every negative entry on a credit report or a background check is automatically grounds for denial of an application, these evaluations can deliver what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Perhaps the most significant mistake a rental property manager can make is overlooking the examine the rental history of a potential tenant. Rental history is advisable to review as it might provide perspective into a renter’s likely future behavior.
When assessing rental history, be vigilant for red flags such as payment delays, harm to property, and other lease agreement violations. While it is unwise to base your entire decision on a previous landlord’s report of an individual, specifically if there were disagreements during the rental period, it can offer valuable information about how the applicant is anticipated to behave as a renter.
Mistake #5: Inadequate Communication with Applicants
Ultimately, one final mistake rental property owners and managers make during the screening process is not able to communicate clearly and consistently with the applicant. Searching for a rental home can be a stressful experience for renters, and irritation can quickly build into negative feelings. Know that your renter’s experience begins with their initial engagement with you and continues throughout your association, regardless of its duration.
To foster a positive relationship with your tenant, start on the right foot by being clear about your application needs, timescales, and how your decision will be communicated. This permits you to avoid misunderstandings that may frustrate or discourage applicants and result in negative reviews.
Get Your Screening Process Right!
By utilizing these tips and strategies, you can quickly avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, may lead to higher tenant retention, fewer problems, and even boost your reputation as a landlord.
Thorough tenant screening requires a significant investment of time. Looking to delegate this responsibility to experts and enhance your tenant screening in Warner Robins? Connect with Real Property Management Vesta. Our exceptional offerings include a streamlined screening process, ensuring legal compliance, and more. Contact us online or call 478-257-7055 for expert property management services.
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