Tenant screening is essential among critical steps in rental property management, but mistakes can lead to costly outcomes. Personal biases or skipping essential parts of the background check and key steps in the screening process can result in significant issues, including late payments, damage, or legal complications. By avoiding these mistakes, you can attract high-quality tenants and keep your properties running smoothly. Here are common tenant screening mistakes with practical tips for effective tenant screening.
Mistake #1: Failing to Screen Consistently
Consistency is crucial for effective tenant screening. When emotions or personal biases influence your decisions, you may overlook tenants or face Legal action, which property owners and managers aim to avoid. Federal laws prohibit discrimination in housing, and a mistake during screening like uneven criteria risks legal trouble. Maintain 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, you should request personal and professional references from prospective tenants in addition to previous landlords. Employment history, financial references, and personal character references are all suitable types of references to request. Then, be sure to contact 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 if they’ve noticed any red flags. Depending on the type of reference, you should customize your list of questions accordingly.
Mistake #3: Overlooking Credit and Background Checks
A third big mistake in tenant screening is failing 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 miss this opportunity to learn valuable information about their renters.
Credit and background checks tell a story about a person and can help you identify possible red flags, such as prior evictions, criminal history, or financial difficulties. While not every negative item on a credit report or a background check is an automatic cause for rejection of an application, these checks do give you what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
A key mistake a rental property manager can make is bypassing Rental history, which predicts renter’s likely future behavior. Review previous landlord’s report for lease agreement violations or including late payments. Despite disagreements during the rental period, it reveals how they behave as a renter, avoiding a mistake rental property owners and managers make during the screening process.
While you should not base your entire decision on a previous landlord’s report of a person, especially if there were disagreements during the rental period, it can offer valuable insight into how the applicant is likely to behave as a renter.
Mistake #5: Inadequate Communication with Applicants
Not communicate clearly and consistently with the applicant is a mistake rental property owners and managers make during the screening process. The application is a stressful experience for renters, risking negative feelings. Build a renter’s experience throughout your association by explaining your application, timelines, and how your decision will be communicated to avoid misunderstandings and result in negative reviews.
Get Your Screening Process Right!
By adhering to these guidelines and strategies, it is possible to avoid common mistakes made by rental property owners and managers during the screening process. This can lead to improved tenant retention, fewer issues, and an enhanced reputation as a landlord.
Thorough tenant screening can be time-consuming. Want to leave this task to professionals and enhance your tenant screening in Cabot? Get in touch with Real Property Management Hometown. Our quality services include a streamlined screening process, ensured legal compliance, and more. Contact us online or call 501-701-4702 or 501-303-6870 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.
