Tenant screening is actually one of the most important steps in rental property management, but, in actuality, it’s pretty easy to make mistakes that could cause cost-intensive headaches in time to come. Whether it’s letting personal biases influence decisions or leaving out essential parts of the background check, paying no heed to key steps in the screening process can bring on major issues such as late payments, property damage, high turnover, and even legal complications.
The incredible news is that avoiding these mistakes can tremendously help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and some practical tips on how to prevent them.
Mistake #1: Failing to Screen Consistently
Consistency is the vitally important key to effective tenant screening. A huge part of consistency is always making certain that you are applying the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are countless risks of failing to screen consistently and objectively, some of which are missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both time-intensive and incalculably expensive, and a harmful effect all rental property owners should work actively to avoid. Some state and federal laws prohibit discrimination in housing, and it is essential 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 other top mistake during screening is missing to check the right references. As part of the application process, you should watchfully ask prospective tenants for personal and professional references other than previous landlords. Employment history, financial references, and personal character references are all ideal types of references to request. Right after, always make certain to contact all of these references and ask the right questions.
Like, 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 noticed. Relying on the type of reference, you should fit your list of questions properly.
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 prudently standard in rental markets nationwide, nonetheless quite a few property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell a vivid story about a person and can help you identify possible red flags, including 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 turning down an application, these checks indeed lend you more than what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Certainly, the most foolish mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is pivotal to examine cause it can give you clear insight into a renter’s likely future behavior.
When affirming rental history, ascertain to watch for potential red flags such as late payments, property damage, and other lease agreement violations. While your entire decision should not be determined from a previous landlord’s report of a person, notably if there were disagreements during the rental period, it can provide helpful insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
Additionally, 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 simply lead to bad feelings. Know 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, step off on the right foot with transparency on your application requirements, timelines, and how your decision will be communicated. Hence, you can admirably avoid misunderstandings that could frustrate or disgust applicants and result in negative reviews.
Get Your Screening Process Right!
By applying these tips and strategies, you can considerably avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can engender better tenant retention, fewer hardships, and even boost your reputation as a landlord.
Extensive tenant screening can be lengthy. If you’d rather want to leave this task to professionals and upgrade your tenant screening in Appleton, contact Real Property Management Lakeshore. Our excellent services include a streamlined screening process, full compliance with all housing laws, and much more! Contact us online or call 920-305-7077 for capable 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.
