Tenant screening is, unquestionably, one of the most important steps in rental property management, but really, it’s simply easy to make mistakes that could create expensive headaches and issues eventually. Whether it’s letting personal biases influence decisions or leaving out essential parts of the background check, forgetting key steps in the screening process can engender major issues such as late payments, property damage, high turnover, and even legal complications.
The really good 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 particular practical tips on how to sidestep them.
Mistake #1: Failing to Screen Consistently
Consistency is the indispensable key to effective tenant screening. A huge part of consistency is establishing that you are applying the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are a heap of risks of failing to screen consistently and objectively, like for example missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both cumbersomely time-consuming and very expensive, and an adverse effect all rental property owners should work actively to avoid. Lots of state and federal laws prohibit discrimination in housing, and it is really 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
One more top mistake during screening is failing to check the right references. As part of the application process, you should properly ask prospective tenants for personal and professional references plus previous landlords. Employment history, financial references, and personal character references are all appropriate types of references to request. Then afterward, make sure to contact all of these references and ask the right questions.
Take 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 any red flags they have observed. Largely based on the type of reference, you should tailor your list of questions necessarily.
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 reasonably standard in rental markets nationwide, but having said that, various property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell a clear story about a person and can help you identify possible red flags, like for illustration prior evictions, criminal history, or financial difficulties. While not every negative item on a credit report or a background check is an automatic cause to turn down an application, these checks do endow you with precisely what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Perhaps the major mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is really important to check deeper on the grounds that it can give you deeper know-how into a renter’s likely future behavior.
When checking rental history, always make certain to carefully watch for potential red flags, as for instance late payments, property damage, and other lease agreement violations. While your entire decision should not be drawn upon a previous landlord’s report of a person, especially if there were disagreements during the rental period, it can contribute more helpful insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One more 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 immediately generate bad feelings. Always don’t forget that your renter’s experience kicks 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, hit the ground running from the outset with transparency on your application requirements, timelines, and how your decision will be communicated. In such a manner, you can avoid misunderstandings that could frustrate or dispirit applicants and result in negative reviews.
Get Your Screening Process Right!
By obeying these tips and strategies, you can successfully avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can develop into better tenant retention, fewer obstacles, and even boost your reputation as a landlord.
Comprehensive tenant screening can be laborious and time-consuming. If you settle to leave this task to professionals and heighten your tenant screening in Winter Garden, contact Real Property Management South Orlando. Our marvelous services include a streamlined screening process, full compliance with all housing laws, and much more! Contact us online or call 407-982-2000 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.
