Tenant screening is one of the most critical steps in rental property management, but it’s easy to make mistakes that could cost a lot of money and time in the long run. Whether it’s letting personal biases affect decisions or skipping essential parts of the background check, ignoring key steps in the screening process can lead to significant issues, including late payments, harm to property, high turnover, and even legal complications.
Positively, avoiding these mistakes can help you attract high-quality tenants and keep your properties running smoothly. The following are some of the most common tenant screening mistakes, along with practical tips on how to evade them.
Mistake #1: Failing to Screen Consistently
Being consistent is important for effective tenant screening. Making sure you use the same criteria for every applicant is a big part of being consistent. You shouldn’t let your emotions or personal biases influence your decisions. Not screening regularly and objectively comes with a number of risks, such as missing out on a great tenant and possibly being sued for discrimination.
Legal action takes a lot of time and money, so all rental property owners should do everything they can to avoid it. Many state and federal laws prohibit discrimination in housing, and it is important to understand how these laws affect you and to make sure that your screening process is legal.
Mistake #2: Not Checking the Right References
Another typical 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 besides 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 illustration, 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 seen any red flags. Depending on the type of reference, you should change the items on your list.
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 pretty common in rental markets nationwide, but some property owners and managers still miss this chance 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, like prior evictions, criminal history, or financial difficulties. Although not every bad 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
Perhaps the worst mistake a rental property manager can make is disregarding to check a potential applicant’s rental history. It is important to look at rental history because it can give you clues about a renter’s likely future behavior.
When looking at a rental past, keep an eye out for possible red flags like late payments, damage to the property, and other lease agreement violations. You shouldn’t make your whole decision based on a previous landlord’s report of a person, particularly if there were disagreements during the rental period. It can offer useful information about how the applicant is likely to behave as a renter.
Mistake #5: Inadequate Communication with Applicants
Finally, a last mistake rental property owners and managers make during the screening process is not communicating clearly and consistently with the applicant. Finding a rental home can be a stressful experience for renters, and disappointment can quickly escalate into negative feelings. Remember that your renter’s experience begins with the first interaction with you and will continue throughout your association, no matter how long it lasts.
To foster a positive relationship with your tenant, start on the right foot by being open about your application requirements, deadlines, and how your decision will be communicated. In this manner, you can avoid misunderstandings that could make applicants angry or turn them off, which could result in negative reviews.
Get Your Screening Process Right!
By adhering to these tips and strategies, you can simply avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can lead to better tenant retention, fewer problems, and even boost your reputation as a landlord.
Thorough tenant screening can be time-consuming. Want to hire someone else to do this job and improve your tenant screening in Tualatin? Don’t hesitate to talk to Real Property Management Assurance. Our first-rate services include a streamlined screening process, making sure that all the laws are followed, and more. Contact us online or call 971-270-2600 for expert property management services.
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