Tenant screening is one of the most critical steps in rental property management, but it’s easy to make blunders that could cause costly problems afterward. Whether it’s permitting personal biases to influence decisions or missing essential parts of the background check, disregarding 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 steer clear of them.
Mistake #1: Failing to Screen Consistently
Consistency is imperative to effective tenant screening. Consistency relies heavily on applying the same criteria to every applicant, avoiding the influence of emotions or personal biases in your decisions. Failing to screen consistently and objectively carries various risks, such as missing out on a great tenant and facing potential lawsuits for discrimination.
Legal action can be a lengthy and costly process, making it essential for all rental property owners to take proactive measures to avoid it. Several state and federal laws prohibit discrimination in housing, making it crucial to comprehend how these regulations pertain to you and to keep a compliant screening process.
Mistake #2: Not Checking the Right References
Another frequent mistake during screening is disregarding to verify the correct references. As part of the application process, it is a good idea to request personal and professional references from prospective tenants alongside previous landlords. It is appropriate to request employment history, financial references, and personal character references. At that point, be sure to call all of these references and ask the right questions.
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 whether they have observed any concerning behaviors. Based on the type of reference, it is important to tailor your list of questions suitably.
Mistake #3: Overlooking Credit and Background Checks
A third big 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 still disregard this opportunity to learn valuable information about their renters.
Credit and background checks reveal important insights about an individual and can help you identify possible red flags, such as prior evictions, criminal history, or financial difficulties. Although not every adverse entry on a credit report or a background check guarantees the rejection of an application, these evaluations 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 disregarding to inspect a potential applicant’s rental history. Rental history is crucial as it provides beneficial information about a renter’s likely future behavior.
When observing rental history, pay close attention to possible warning signs, including late payments, property damage, and other lease agreement violations. Although it is unwise to rely solely on a previous landlord’s report of a person, particularly if there were disagreements during the rental period, it can provide useful information about 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 procedure of applying for a rental home often brings stressful experiences for renters, and it’s not uncommon for frustration to develop into negative feelings. Keep in mind that your renter’s experience begins with the first interaction with you and will continue throughout your association, regardless of its duration.
To foster a positive relationship with your tenant, begin by clearly outlining your application requirements, timelines, and how your decision will be communicated. This method helps you avoid misunderstandings that may frustrate or discourage applicants and result in negative reviews.
Get Your Screening Process Right!
By implementing these tips and strategies, you can effectively avoid the top mistakes rental property owners and managers make during the screening process. This can result in improved tenant retention, reduced challenges, and even boost your reputation as a landlord.
Wide-ranging tenant screening may demand a significant investment of time. Want to leave this task to professionals and enhance your tenant screening in Pflugerville? Get in touch with Real Property Management All Connect. Our quality services include a streamlined screening process, ensured legal compliance, and more. Contact us online or call 512-806-0606 for expert property management services.
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