Tenant screening is definitely one of the most important steps in rental property management, but, at any rate, it’s very simple to make mistakes that could trigger expensive headaches hereafter. Whether it’s letting personal biases influence decisions or missing essential parts of the background check, neglecting key steps in the screening process can produce major issues such as late payments, property damage, high turnover, and even legal complications.
The exciting news is that avoiding these mistakes can extremely help you successfully attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and a few practical tips on how to dodge them.
Mistake #1: Failing to Screen Consistently
Consistency is the major key to effective tenant screening. A major part of consistency is making certain that you are applying the same criteria for every applicant rather than allowing emotions or personal biases influence your decisions. There are a lot of risks of failing to screen consistently and with an open mind, including missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both arduously time-consuming and pricy, and a disadvantageous result all rental property owners should work actively to avoid. A number of state and federal laws prohibit discrimination in housing, and it is critically important to understand how those laws apply to you and to, without exception, 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 heedfully ask prospective tenants for personal and professional references together with previous landlords. Employment history, financial references, and personal character references are all appropriate types of references to ask for. Not only that, make certain to actually contact all of these references and ask the right questions.
Such as, 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 have noticed. Subject to the type of reference, you should personalize 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 generally standard in rental markets nationwide, but, be that as it may, lots of property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell a vivid story about a person and can help you identify possible red flags, as for example 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 bring you simply what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Perhaps the most horrible mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is critically important to inspect because of the fact that it can give you valuable insight into a renter’s likely future behavior.
When corroborating rental history, ensure to watch for potential red flags for illustration 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, particularly if there were disagreements during the rental period, it can endow favorable 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 just amplify into bad feelings. Bear in mind that your renter’s experience starts off 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, get a positive start with transparency on your application requirements, timelines, and how your decision will be communicated. In this way, you can totally avoid misunderstandings that could frustrate or dismay applicants and result in negative reviews.
Get Your Screening Process Right!
By putting to use these tips and strategies, you can absolutely avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can prompt better tenant retention, fewer objections, and even boost your reputation as a landlord.
Meticulous tenant screening can be time-consumingly drawn out. If you’d like to leave this task to professionals and intensify your tenant screening in Gonzales, contact Real Property Management Baton Rouge. Our tip-top services include a streamlined screening process, enhanced compliance with all housing laws, and much more! Contact us online or call 225-389-6860 for experienced and 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.
