Tenant screening is one of the most critical steps in rental property management, yet it’s simple to make errors that might result in significant difficulties later. Whether it’s letting personal biases influence decisions or omitting essential parts of the background check, overlooking key steps in the screening process can cause significant issues, including late payments, property damage, high turnover, and even legal complications.
The positive aspect is that avoiding these mistakes can help you attract high-quality tenants and keep your properties running smoothly. Below are a couple of the most common tenant screening mistakes, alongside practical tips on how not to make them.
Mistake #1: Failing to Screen Consistently
Effective tenant screening relies heavily on consistency. A crucial aspect of consistency is ensuring that you utilize the same criteria for each application instead of permitting emotions or personal biases to influence your decisions. Failure to screen regularly and objectively carries a number of hazards, including missed opportunities for a fantastic tenant and potential discrimination claims.
Legal action is both tedious and costly, and it is something that all rental property owners should actively want to avoid. Numerous state and federal laws prohibit discrimination in housing, and it is critical that you know how these laws relate to your situation and maintain a compliant screening procedure.
Mistake #2: Not Checking the Right References
Another frequent mistake during screening involves neglecting to verify the correct references. As an element of the application process, you need to ask for personal and professional references from prospective tenants in addition to previous landlords. Employment history, financial references, and personal character references are all suitable kinds of references to request. After that, don’t forget to reach out to all of these references and ask the right questions.
For illustration, you could inquire about how long they’ve known the applicant, their performance at work, how well they care for their current living space, and whether they’ve spotted any red flags. Your list of questions should be tailored to the specific type of reference.
Mistake #3: Overlooking Credit and Background Checks
A third significant mistake in tenant screening is failing to run credit and background checks on the applicant. Both assessments are fairly common in rental markets nationwide, but some property owners and managers keep disregarding this chance to learn valuable information about their renters.
Credit and background checks tell a story about an individual and can help you identify possible red flags, like prior evictions, criminal history, or financial difficulties. Though not every unfavorable item on a credit report or a background check is automatically grounds for denial of an application, these checks can deliver what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Perhaps the most costly mistake a rental property manager can make is neglecting the verification of a prospective applicant’s rental history. Rental history is important to review as it might provide a perspective into a renter’s likely future behavior.
When checking rental history, look for warning signs like payment delays, harm to property, and other lease agreement violations. While you shouldn’t rely entirely on your choice of a previous landlord’s report of an individual, specifically if there were disagreements during the rental period, it might provide useful information about how the applicant is expected to behave as a renter.
Mistake #5: Inadequate Communication with Applicants
Ultimately, one common mistake rental property owners and managers make during the screening process is not being able to communicate clearly and consistently with the applicant. Seeking a rental home can be a stressful experience for renters, and annoyance can quickly build into negative feelings. Understand that your renter’s experience starts with their initial engagement with you and continues throughout your association, irrespective of its duration.
To foster a positive relationship with your tenant, start on the right foot by being transparent about your application needs, intervals, and how your decision will be communicated. This allows you to avoid misunderstandings that may confuse or deter applicants and result in negative reviews.
Get Your Screening Process Right!
By adopting these tips and strategies, you can quickly avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, may give rise to higher tenant retention, fewer difficulties, and even boost your reputation as a landlord.
Thorough tenant screening can take time. Want to delegate this duty to pros and improve your tenant screening in Haubstadt? Connect with Real Property Management Results. Our excellent offerings encompass a streamlined screening process, ensuring legal compliance, and more. Contact us online or call 812-461-1676 for expert property management services.
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