Tenant screening is, doubtless, one of the most important steps in rental property management, but, with that said, it’s extremely easy to make mistakes that could set you up for ultra-expensive headaches thereafter. Whether it’s letting personal biases influence decisions or leaving out essential parts of the background check, failing to do key steps in the screening process can lead to major issues such as late payments, property damage, high turnover, and even legal complications.
The marvelous 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 numerous practical tips on how to keep away from them.
Mistake #1: Failing to Screen Consistently
Consistency is the vital key to effective tenant screening. A large part of consistency is assuring that you are employing the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are considerable risks of failing to screen consistently and with an open, objective mind, some of which are missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both time-intensive and financially excessive, and a negative outcome all rental property owners should work actively to avoid. A number of state and federal laws prohibit discrimination in housing, and it is critically important to understand how those laws apply to you and to continually 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 mindfully ask prospective tenants for personal and professional references including previous landlords. Employment history, financial references, and personal character references are all appropriate types of references to seek for. After that, determine to actually contact all of these references and ask the right questions.
By way of 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 any red flags they distinguished. Conditional on the type of reference, you should adjust your list of questions suitably.
Mistake #3: Overlooking Credit and Background Checks
A third big mistake in tenant screening is neglecting to run credit and background checks on the applicant. Both assessments are commonly standard in rental markets nationwide, but, on the other hand, some property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell an informative story to a person and can help you identify possible red flags, by way of example 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 repudiation of an application, these checks do provide just what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Disputably, the biggest mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is important to explore on the account that it can give you valuable insights into a renter’s likely future behavior.
When substantiating rental history, secure to meticulously watch for potential red flags to cite for instance late payments, property damage, and other lease agreement violations. While your entire decision should not be reliant on a previous landlord’s report of a person, most importantly if there were disagreements during the rental period, it can endow worthwhile insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One final thing to bear in mind, 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 very easily flourish into bad feelings. Bear in mind that your renter’s experience sets off with the first interaction with you and will continue throughout your association, no matter how long that may be.
To foster a positive relationship with your tenant, start successfully with transparency on your application requirements, timelines, and how your decision will be communicated. This way, you can utterly avoid misunderstandings that could frustrate or discourage applicants and result in negative reviews.
Get Your Screening Process Right!
By taking advantage of these tips and strategies, you can entirely avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can bring in better tenant retention, fewer provocations, and even boost your reputation as a landlord.
Extensive tenant screening can be time-consuming. If you’d see fit to to leave this task to professionals and better enhance your tenant screening in Cary, contact Real Property Management Wake County Our exceptional services count in a streamlined screening process, utter compliance with all housing laws, and much more! Contact us online or call 919-747-3488 for reputable 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.
