Tenant screening is one of the most critical steps in rental property management, but it’s easy to make mistakes that could lead to costly headaches later on. Whether it’s letting personal biases affect choices or omitting essential parts of the background check, overlooking key steps in the screening process can result in significant issues, including late payments, property damage, high turnover, and even legal complications.
Providentially, avoiding these mistakes can help you attract high-quality tenants and keep your properties running smoothly. Below are several of the most common tenant screening mistakes, along with practical tips on how to circumvent them.
Mistake #1: Failing to Screen Consistently
Consistency is essential to effective tenant screening. An essential aspect of consistency is making sure that you apply the same standards for each candidate instead of allowing emotions or personal biases to influence your decisions. Numerous hazards come with not screening regularly and impartially, such as lost chances for an excellent tenant and possible legal actions for discrimination.
Legal action is not only lengthy but also costly, and it is a result that every rental property owner should strive to avoid. A variety of state and federal laws prohibit discrimination in housing, making it vital to grasp how these regulations pertain to you and to uphold a compliant screening procedure.
Mistake #2: Not Checking the Right References
Another usual mistake during screening is failing to verify the correct references. As part of the application process, it is recommended to acquire personal and professional references from prospective tenants, along with previous landlords. Employment history, financial references, and personal character references are all suitable kinds of references to ask for. Then, don’t forget to speak to all of these references and ask the right questions.
For instance, you could ask them how long they’ve known the applicant, their job performance, how well they care for their current living space, and whether they’ve detected any warning signs. Based on the type of reference, you ought to tailor your set 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 quite typical in rental markets nationwide, but some property owners and managers continue to disregard this opportunity to learn valuable information about their renters.
Credit and background checks reveal data about an individual and can help you identify possible red flags, such as prior evictions, criminal history, or financial difficulties. Although not every negative entry on a credit report or a background check ensures the denial of an application, these valuations do give you what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
One of the most significant mistakes a rental property manager can make is failing to inspect a potential applicant’s rental history. Rental history is vital to check because it can give you data on a renter’s likely future behavior.
When studying rental history, stay alert for possible red flags, including delayed payments, property damage, and other lease agreement violations. Although you should not depend on your entire decision on a previous landlord’s report of a person, especially if there were disagreements during the rental period, it can deliver a valuable perspective on how the candidate 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 overlooking the importance of communicating clearly and consistently with the applicant. Locating a rental home can be a stressful experience for renters, and aggravation can quickly turn into negative feelings. Bear in mind that your renter’s experience starts with the initial interaction with you and will continue throughout your association, irrespective of its duration.
To foster a positive relationship with your tenant, start on the right foot by being transparent about your application requirements, timelines, and how your decision will be communicated. In this way, you can avoid misunderstandings that might irritate or dishearten candidates and result in negative reviews.
Get Your Screening Process Right!
By applying 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 initiate better tenant retention, fewer annoyances, and even boost your reputation as a landlord.
In-depth tenant screening can be time-consuming. Looking to hand over this task to experts and improve your tenant screening in Maitland? Communicate with Real Property Management Vanguard. We offer top-notch services featuring a streamlined screening process, guaranteed legal adherence, and more. Contact us online or call 407-681-7802 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.
