Tenant screening is, unequivocally, one of the most important steps in rental property management, then again, it’s relatively easy to make mistakes that could bring about very expensive headaches eventually. Whether it’s letting personal biases influence decisions or leaving out essential parts of the background check, forgetting key steps in the screening process can give rise to major issues such as late payments, property damage, high turnover, and even legal complications.
The awesome news is that avoiding these mistakes can exceedingly help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and a lot of practical tips on how to perfectly avoid them.
Mistake #1: Failing to Screen Consistently
Consistency is the critical key to effective tenant screening. A huge part of consistency is ensuring that you are applying the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are multiple risks of failing to screen consistently and objectively, a few of which are missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both protracted and uneconomical, and an adverse result all rental property owners should work actively to avoid. Lots of state and federal laws prohibit discrimination in housing, and it is crucially important to understand how those laws apply to you and to consistently keep your screening process in compliance.
Mistake #2: Not Checking the Right References
Another top mistake during screening is failing to check the right references. As part of the application process, you should earnestly ask prospective tenants for personal and professional references along with previous landlords. Employment history, financial references, and personal character references are all appropriate types of references to ask for. But, give it importance to promptly 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 any red flags they recognized. Contingent upon the type of reference, you should personalize your list of questions suitably.
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 reasonably standard in rental markets nationwide, but, even with that, lots of property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell an insightful story about a person and can help you identify possible red flags, by way of illustration 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 denial of an application, these checks do extend you what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Perhaps the biggest mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is crucial to review for the reason that it can give you invaluable insights into a renter’s likely future behavior.
When considering rental history, warrant to earnestly watch for potential red flags, for illustration late payments, property damage, and other lease agreement violations. While your entire decision should not be derived from a previous landlord’s report of a person, particularly if there were disagreements during the rental period, it can present useful insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
Lastly, a last mistake rental property owners and managers make during the screening process is failing to communicate clearly and consistently with the applicant. Applying for a rental home can be a stressful experience for a renter, and frustration can naturally lead to bad feelings. Take note that your renter’s experience typically begins with the first interaction with you and will continue throughout your association, however long that may be.
To foster a positive relationship with your tenant, begin very well with transparency on your application requirements, timelines, and how your decision will be communicated. In this fashion, you can easily avoid misunderstandings that could frustrate or put off applicants and result in negative reviews.
Get Your Screening Process Right!
By exercising these tips and strategies, you can perfectly avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can stir up better tenant retention, fewer problems, and even boost your reputation as a landlord.
Comprehensive tenant screening can be hard and time-consuming. If you’re inclined towards leaving this task to professionals and totally enhance your tenant screening in Chandler, contact Real Property Management Firebird. Our excellent services include a streamlined screening process, full compliance with all housing laws, and much more! Contact us online or call 602-805-2211 for adept property management services.
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