Tenant screening is a vital critical steps in rental property management, but errors can create significant challenges for property owners and managers. Personal biases or neglecting essential parts of the background check and key steps in the screening process can lead to significant issues, including late payments, property damage, turnover, or legal complications. Avoiding these mistakes ensures you attract high-quality tenants and keep your properties running smoothly. This guide explores common tenant screening mistakes and offers practical tips for effective tenant screening to boost tenant retention in rental markets nationwide.
Mistake #1: Failing to Screen Consistently
Consistency is key to effective tenant screening. When emotions or personal biases influence your decisions, you may miss great tenants or face Legal action, which property owners and managers aim to avoid. Federal laws prohibit discrimination in housing, and a mistake during screening, like varying standards, risks legal challenges. A uniform screening process ensures compliance and fairness, promotes fairness in the application process, and protects your business from legal complications, building confidence in your screening practices.
Mistake #2: Not Checking the Right References
Another common 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 in addition to 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 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 if they’ve noticed any red flags. Depending on the type of reference, you should customize 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 relatively standard in rental markets nationwide, but some property owners and managers still miss this opportunity 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, such as 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 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
One of the gravest mistake a rental manager can make property manager is ignoring Rental history, a key predictor of a renter’s future likely behavior. Examining the previous landlord’s report can uncover lease agreement violations, including late payments, property damage, or other issues. Even if disagreements during the rental period occurred, this data offers insight behave as a rent. Neglecting history is a mistake rental property owners make during screening and managers process that can lead to significant issues, so always verify past rent performance.
Mistake #5: Inadequate Communication with Applicants
Not communicating clearly and with applicant is a common mistake rental property owners and managers make during screening, impacting renter’s experience. The application can be stressful for renters, fostering negative feelings if unclear. To upfront about your application timelines, requirements, and how decision will be communicated. Clear communication, sustained throughout your association, helps avoid misunderstandings that could result negative reviews, supporting retention and enhancing your reputation.
Get Your Screening Process Right!
By following these tips and strategies, you can easily avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can lead to better tenant retention, fewer headaches, and even boost your reputation as a landlord.
Thorough tenant screening can be time-consuming. Want to leave this task to professionals and enhance your tenant screening in Bushland? Get in touch with Real Property Management of the High Plains. Our quality services include a streamlined screening process, ensured legal compliance, and more. Contact us online or call 806-553-7914 for 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.
