Tenant screening is, without question, one of the most important steps in rental property management, but then again, it’s so quick to make mistakes that could develop into incalculable headaches and problems in time. Whether it’s letting personal biases influence decisions or omitting essential parts of the background check, ignoring key steps in the screening process can cause major issues such as late payments, property damage, high turnover, and even legal complications.
The amazing 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 handful of practical tips on how to elude them.
Mistake #1: Failing to Screen Consistently
Consistency is the primary key to effective tenant screening. A great part of consistency is always making sure that you are implementing the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are particular risks of failing to screen consistently and objectively, like missed opportunities for a great tenant, and even potential discrimination lawsuits.
Legal action is both totally time-consuming and cost-intensive and a negative result all rental property owners should work actively to avoid. Many different state and federal laws prohibit discrimination in housing, and it is important to understand how those laws apply to you and to always keep your screening process in compliance.
Mistake #2: Not Checking the Right References
One other top mistake during screening is failing to check the right references. As part of the application process, you should attentively ask prospective tenants for personal and professional references including previous landlords. Employment history, financial references, and personal character references are all suitable types of references to look for. But, on the other hand, always make sure to actually contact all of these references and ask the right questions.
To cite an 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 sensed. According to the type of reference, you should modify and 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 generally standard in rental markets nationwide, but, even so, countless property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks paint a clear picture 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 disapproval of an application, these checks do furnish you with exactly what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Maybe the gravest mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is important to delve into because it can give you a clear perception of a renter’s likely future behavior.
When ascertaining rental history, make sure to attentively watch for potential red flags, as for example late payments, property damage, and other lease agreement violations. While your entire decision should not be dependent on a previous landlord’s report of a person, certainly if there were disagreements during the rental period, it can offer you very important insights into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One final point, 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 quickly escalate into bad feelings. Always keep in mind that your renter’s experience certainly starts with the first interaction with you and will continue throughout your association, doesn’t matter how long that may be.
To foster a positive relationship with your tenant, establish a solid beginning by ensuring transparency on your application requirements, timelines, and how your decision will be communicated. So you can easily avoid misunderstandings that could frustrate or disincline applicants and result in negative reviews.
Get Your Screening Process Right!
By heeding these tips and strategies, you can properly avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can cause better tenant retention, fewer protests, and even boost your reputation as a landlord.
Correct tenant screening can be labor and time-consuming. If you decide to leave this task to professionals and boost your tenant screening in Hawthorne, contact Real Property Management California Coast. Our terrific services envelop a streamlined screening process, utter compliance with all housing laws, and much more! Contact us online or call 310-535-2150 for seasoned and expert property management services.
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