Tenant screening is one of the most critical steps in rental property management, but it is not uncommon to encounter mistakes that may lead to significant issues down the line. Whether it’s permitting personal biases to affect decisions or missing essential parts of the background check, ignoring key steps in the screening process can bring about significant issues, including late payments, property damage, increased turnover, and even legal complications.
Avoiding these mistakes can lead to attracting high-quality tenants and keep your properties running smoothly. Below are some of the most common tenant screening mistakes, along with practical tips on how to stay out of them.
Mistake #1: Failing to Screen Consistently
Consistency is crucial to effective tenant screening. Consistency is fundamentally rooted in the application of uniform criteria to all applicants, ensuring that decisions remain free from the influence of emotions or personal biases in your decisions. Inconsistent and subjective screening poses significant risks, including the potential loss of an excellent tenant and the likelihood of facing discrimination lawsuits.
Engaging in legal action can be a drawn-out and expensive endeavor, underscoring the importance for all rental property owners to implement proactive strategies to avoid it. Several state and federal laws prohibit discrimination in housing, highlighting the importance of understanding how these regulations apply to you and maintaining a compliant screening process.
Mistake #2: Not Checking the Right References
Another common mistake during screening is failing to verify the correct references. As part of the application process, it is advisable to obtain personal and professional references from prospective tenants alongside previous landlords. It is suitable to ask for employment history, financial references, and personal character references. At that point, ensure you contact all of these references and ask the right questions.
For instance, you could ask them how long they’ve known the applicant, how they are doing at work, how well they care for their current living space, and if they have noticed any troubling behaviors. It is essential to customize your list of questions according to the type of reference.
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 relatively standard in rental markets nationwide, but some property owners and managers persist in ignoring this chance to learn valuable information about their renters.
Credit and background checks reveal useful information 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 assessments give you what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Probably the worst mistake a rental property manager can make is failing to inspect a potential applicant’s rental history. Rental history is important as it provides useful data about a renter’s likely future behavior.
While reviewing rental history, it is essential to be vigilant for potential red flags, including late payments, property damage, and other lease agreement violations. While it may not be prudent to depend exclusively on a previous landlord’s report of a person, particularly if there were disagreements during the rental period, such reports can offer valuable insight into how the applicant is likely to behave as a renter.
Mistake #5: Inadequate Communication with Applicants
Lastly, one final mistake rental property owners and managers make during the screening process is disregarding to communicate clearly and consistently with the applicant. The process of searching for a rental home often brings stressful experiences for renters, and it’s easy for frustration to escalate into negative feelings. Keep in mind that your renter’s experience starts with the first interaction with you and will last throughout your association, regardless of its duration.
To foster a positive relationship with your tenant, begin by clearly highlighting your application requirements, timelines, and how your decision will be communicated. This tactic helps you avoid misunderstandings that may disappoint or discourage applicants and result in negative reviews.
Get Your Screening Process Right!
By applying these tips and strategies, you can simply avoid the top mistakes rental property owners and managers make during the screening process. This can result in improved tenant retention, minimized challenges, and even boost your reputation as a landlord.
Comprehensive tenant screening can demand a considerable commitment of time. Looking to entrust this task to experts and improve your tenant screening in Mint Hill? Get in touch with Real Property Management Value. We offer excellent services like a streamlined screening process, ensured compliance with the law, and more. Contact us online or call 704-285-2228 for expert property management services.
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