Tenant screening is, without question, one of the most important steps in rental property management, but, on the other hand, it is rather simple to make mistakes that could engender financially uneconomical headaches and problems, at a future time. Whether it’s letting personal biases influence decisions or missing essential parts of the background check, glossing over key steps in the screening process can set off major issues such as late payments, property damage, high turnover, and even legal complications.
The most amazing news is that avoiding these mistakes can totally help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and a number of practical tips on how to get away from or avoid them.
Mistake #1: Failing to Screen Consistently
Consistency is the major key to effective tenant screening. The main part of consistency is really making sure that you are employing the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are innumerable risks of failing to screen consistently and objectively, including missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both painstakingly time-consuming and unprofitably expensive, and an unfavorable result all rental property owners should work actively to avoid. Most state and federal laws prohibit discrimination in housing, and it is basically important to understand how those laws apply to you and to 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 extensively ask prospective tenants for personal and professional references as well as previous landlords. Employment history, financial references, and personal character references are all excellent types of references to ask for. Right after, really make sure to promptly contact all of these references and ask the right questions.
As 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 caught on. Leaning on the type of reference, you should rework your list of questions accordingly.
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 usually standard in rental markets nationwide, although some property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks give a telling story about a person and can help you identify possible red flags, that is to say, 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 denial of an application, these checks definitely provide you simply with what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Probably the most horrible mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is essential to verify for the reason that it can give you pertinent insights into a renter’s likely future behavior.
When corroborating rental history, ensure to meticulously watch for potential red flags, the same as late payments, property damage, and other lease agreement violations. While your entire decision should not be utterly based on a previous landlord’s report of a person, precisely if there were disagreements during the rental period, it can offer fruitful insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One last matter to think about, 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 quickly morph into bad feelings. Do not 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, get off to a great start with transparency on your application requirements, timelines, and how your decision will be communicated. Like so, you can advantageously avoid misunderstandings that could frustrate or scare away applicants and result in negative reviews.
Get Your Screening Process Right!
By sticking to and applying 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 cause better tenant retention, fewer disadvantages, and even boost your reputation as a landlord.
Proper tenant screening can be labor-intensive. If you’d rather want to leave this task to professionals and extensively improve your tenant screening in El Dorado Hills, contact Real Property Management Folsom Lake. Our splendid services include a streamlined screening process, complete compliance with all housing laws, and much more! Contact us online or call 916-850-2844 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.
