Tenant screening is among the most critical steps in rental property management, yet slip ups are easy to make and can cause significant difficulties in a while. Whether it’s letting personal biases affect choices or ignoring essential parts of the background check, skipping key steps in the screening process can bring about significant issues, including late payments, destruction of property, high turnover, and even legal complications.
The great thing is that avoiding these mistakes can help you attract high-quality tenants and keep your properties running smoothly. Below are some of the most common tenant screening mistakes, in addition to practical tips for preventing them.
Mistake #1: Failing to Screen Consistently
Consistency is crucial to effective tenant screening. A critical component of consistency is guaranteeing that you utilize the same standard for each application instead of permitting emotions or personal biases to influence your decisions. Failure to screen frequently and objectively has several dangers, such as missed opportunities for a good renter and potential discrimination litigation.
Legal action is both costly and arduous and an outcome that all rental property owners should actively attempt to avoid. Several state and federal laws prohibit discrimination in housing, and it is important that you comprehend how these laws relate to you and maintain your examining procedure compliant.
Mistake #2: Not Checking the Right References
Another common mistake during screening is overlooking to verify the correct references. As an element of the application process, you need to obtain personal and professional references from prospective tenants along with previous landlords. Employment history, financial references, and personal character references are all suitable kinds of references to obtain. Then, make sure you reach out to each of these references and ask the right questions.
For example, you could question them about how long they’ve known the applicant, how they do at work, how well they care for their current living space, and whether they’ve noticed any warning signs. Depending on the type of reference, customize your list of questions properly.
Mistake #3: Overlooking Credit and Background Checks
A third major mistake in tenant screening is disregarding to run credit and background checks on the applicant. Both assessments are relatively standard in rental markets nationwide, but some property owners and managers continue to neglect this opportunity to learn valuable information about their renters.
Credit and background checks give information about an individual and can help you identify possible red flags, such as prior evictions, criminal history, or financial difficulties. Even though not every bad item on a credit report or a background check automatically results in the refusal of an application, these evaluations do provide you with what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Probably the major mistake a rental property manager can make is failing to inspect a potential applicant’s rental history. Rental history is critical for verification since it can give you data about a renter’s likely future behavior.
When investigating rental history, look for any warning signs, such as delayed payments, harm to property, and other lease agreement violations. Even though you shouldn’t rely on your whole decision on a previous landlord’s report of a person, especially if there were disagreements during the rental period, it might provide helpful insights about how the applicant is likely to behave as a renter.
Mistake #5: Inadequate Communication with Applicants
Ultimately, a common mistake rental property owners and managers make during the screening process is failing to communicate clearly and consistently with the applicant. Finding a rental home can be a stressful experience for renters, and annoyance can rapidly turn into negative feelings. Don’t forget that your renter’s experience starts with the first communication with you and will last throughout your association, no matter its length.
To foster a positive relationship with your tenant, start by being open about your application necessities, timelines, and how your decision will be communicated. Due to this, you can avoid misunderstandings that may frustrate or dishearten applicants and result in negative reviews.
Get Your Screening Process Right!
By observing these tips and strategies, you can smoothly avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can bring about increased tenant retention, fewer complications, and even boost your reputation as a landlord.
Complete tenant screening can be backbreaking. Would you like to assign this duty to professionals and improve your tenant screening in Southfield? Call Real Property Management Advantage for assistance. Our outstanding offerings include a streamlined screening process, ensured legal compliance, and so forth. Contact us online or call 248-554-1010 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.
