Tenant screening is one of the most critical steps in rental property management, although it is easy to commit errors that may lead to costly issues in the future. Neglecting key steps in the screening process may lead to significant issues, including late payments, property damage, high turnover, and even legal complications. This includes allowing personal biases to impact judgments or missing essential parts of the background check.
Luckily, avoiding these mistakes can help you attract high-quality tenants and keep your properties running smoothly. This post outlines the most common tenant screening mistakes and offers practical tips for their prevention.
Mistake #1: Failing to Screen Consistently
Consistency is necessary for effective tenant screening. A key element of consistency is applying uniform standards to all applicants rather than allowing emotions or personal biases to influence your decisions. Neglecting to conduct regular and unbiased screenings has several risks, including missed opportunities to identify an excellent tenant and potential discrimination litigation.
All rental property owners should diligently strive to avoid legal action as they are both expensive and time-consuming. Various state and federal laws prohibit discrimination in housing, making it essential to understand their implications and ensure your screening process remains compliant.
Mistake #2: Not Checking the Right References
Another frequent mistake during screening is neglecting to verify the correct references. Apart from previous landlords, you need to get personal and professional references from prospective tenants as part of the application process. References that are suitable to demand include employment history, financial references, and personal character references. Subsequently, ensure to contact all of these references and ask the right questions.
For instance, you could inquire about how long they’ve known the applicant, their job efficiency, how well they care for their current living space, and any observed danger. This type of reference will dictate how your list of questions should be customized.
Mistake #3: Overlooking Credit and Background Checks
A third main mistake in tenant screening is refusing to run credit and background checks on the applicant. Despite the fact that both assessments are prevalent in rental markets nationwide, some property owners and managers persist in neglecting the opportunity to learn valuable information about their renters.
Credit and background checks provide insights into an individual and can help you identify possible red flags, such as prior evictions, criminal history, or financial difficulties. Even though a credit report or a background check invariably leads to an application denial, it does provide you with what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Neglecting to verify a potential applicant’s rental history is likely the most significant mistake a rental property manager can make. Rental history is crucial as it offers insights into a renter’s likely future behavior.
Monitor for potential warning indicators in rental history, including tardy payments, property damage, and other lease agreement violations. While one should not base their entire judgment on a previous landlord’s report of a person, especially if there were disagreements during the rental period, it can provide valuable insights into how the applicant is likely to behave as a renter.
Mistake #5: Inadequate Communication with Applicants
Ultimately, the last mistake rental property owners and managers make during the screening process is the failure to communicate clearly and consistently with the applicant. Browsing for a rental home can be a stressful experience for renters, and frustration may swiftly escalate into negative feelings. Irrespective of the duration of your collaboration, remember that your renter’s experience commences with their first interaction with you and will continue throughout your association.
To foster a positive relationship with your tenant, start on the right foot by being open about your application criteria, dates, and how your decision will be communicated. By implementing this approach, you can avoid misunderstandings that may frustrate or dissuade applicants and result in negative reviews.
Get Your Screening Process Right!
By adhering to these tips and strategies, you can simply avoid the top mistakes rental property owners and managers make during the screening process. Enhanced tenant retention, fewer complications, and even a boost in your reputation as a landlord can result from this.
Extensive tenant screening might be burdensome. Would you like to enhance your tenant screening in Decatur by entrusting this task to professionals? Reach out to Real Property Management North Point. Our premium services include a streamlined screening process, guaranteed legal compliance, and more. Contact us online or call 404-905-9455 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.
