Tenant screening is, for sure, one of the most important steps in rental property management, but, conversely, it’s rather very easy to make mistakes that could bring about very expensive headaches eventually. Whether it’s letting personal biases influence decisions or missing essential parts of the background check, passing over 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 happy news is that avoiding these mistakes can vastly help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and a number of practical tips on how to stay away from them.
Mistake #1: Failing to Screen Consistently
Consistency is the primary key to effective tenant screening. An essential part of consistency is insuring that you are implementing the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are some risks of failing to screen consistently and objectively, which actually include missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both arduous and financially steep and an unfavorable fallout all rental property owners should work actively to avoid. Quite a few state and federal laws prohibit discrimination in housing, and it is pretty 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 neglecting to check the right references. As part of the application process, you should firmly ask prospective tenants for personal and professional references plus previous landlords. Employment history, financial references, and personal character references are all necessary types of references to ask for. Later on, completely make sure to certainly contact all of these references and ask the right questions.
Such as for instance, 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 discovered. Resting on the type of reference, you should amend your list of questions accordingly.
Mistake #3: Overlooking Credit and Background Checks
A third big mistake in tenant screening is not being able to run credit and background checks on the applicant. Both assessments are typically standard in rental markets nationwide, however, most property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell an enlightening story about a person and can help you identify possible red flags, involving 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 disapproval of an application, these checks do endow you with precisely what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Definitely the greatest mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is relevant to evaluate on the grounds that it can give you useful insights into a renter’s likely future behavior.
When reviewing rental history, always make sure to watch for potential red flags the same as late payments, property damage, and other lease agreement violations. While your entire decision should not be completely based on a previous landlord’s report of a person, precisely if there were disagreements during the rental period, it can bring positive insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One last matter to take note of, 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 practically lead to bad feelings. Always don’t forget that your renter’s experience, without question, starts 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, hit the ground running from the onset with transparency on your application requirements, timelines, and how your decision will be communicated. In such manner, you can beneficially avoid misunderstandings that could frustrate or dispirit applicants and result in negative reviews.
Get Your Screening Process Right!
By performing these tips and strategies, you can totally avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can stir up better tenant retention, fewer disadvantages, and even boost your reputation as a landlord.
Detailed tenant screening can be drawn-out. If you’d rather want to leave this task to professionals and spruce up your tenant screening in San Ramon, contact Real Property Management Diablo Valley. Our marvelous services include a streamlined screening process, strict observance of all housing laws, and much more! Contact us online or call 925-658-5755 for well-experienced 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.
