Tenant screening is, indeed, one of the most important steps in rental property management, but, having said that, it’s too easy to make mistakes that could contribute to pricey problems and headaches henceforward. Whether it’s letting personal biases influence decisions or skipping essential parts of the background check, missing key steps in the screening process can develop major issues such as late payments, property damage, high turnover, and even legal complications.
The fantastic news is that avoiding these mistakes can help you extensively attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and multiple practical tips on how to carefully avoid them.
Mistake #1: Failing to Screen Consistently
Consistency is the primary key to effective tenant screening. A major part of consistency is seeing to it that you are implementing the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are plenty of risks of failing to screen consistently and objectively, encompassing missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both time-intensive and exorbitant, and a harmful result all rental property owners should work actively to avoid. Several state and federal laws prohibit discrimination in housing, and it is essential to understand how those laws apply to you and to continually 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 mindfully ask prospective tenants for personal and professional references other than previous landlords. Employment history, financial references, and personal character references are all suitable types of references to call for. But aside from that, ensure to immediately contact all of these references and ask the right questions.
In particular, 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 know of. Relative to the type of reference, you should fashion your list of questions accordingly.
Mistake #3: Overlooking Credit and Background Checks
A third big mistake in tenant screening is forgetting to run credit and background checks on the applicant. Both assessments are commonly standard in rental markets nationwide, but really, a lot of property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell a revealing story about a person and can help you identify possible red flags, for 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 turning down an application, these checks do give you precisely what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Most likely the biggest mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is critically important to delve into as it can give you discernment into a renter’s likely future behavior.
When examining rental history, make sure to mindfully watch for potential red flags, take for example late payments, property damage, and other lease agreement violations. While your entire decision should not be based solely on a previous landlord’s report of a person, mainly if there were disagreements during the rental period, it can give you profitable insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One last matter to seriously think about, 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 swiftly accumulate into bad feelings. Do not forget that your renter’s experience usually starts with the first interaction with you and will continue throughout your association, however long that may be.
To effectively foster a positive relationship with your tenant, embark on a good note with transparency on your application requirements, timelines, and how your decision will be communicated. Hereby, you can intently avoid misunderstandings that could frustrate or disappoint applicants and result in negative reviews.
Get Your Screening Process Right!
By employing these tips and strategies, you can practically avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can set in motion better tenant retention, fewer burdens, and even boost your reputation as a landlord.
Meticulous tenant screening can be lengthy. If you like best to leave this task to professionals and improve your tenant screening in Bothell, contact Real Property Management Eclipse. Our excellent services include a streamlined screening process, perfect compliance with all housing laws, and much more! Contact us online or call 425-209-0252 for dependable 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.
