Fortunately, avoiding these mistakes can help you attract high-quality tenants and keep your properties running smoothly. Presented are some of the most common tenant screening mistakes, accompanied by practical tips for their avoidance.
Mistake #1: Failing to Screen Consistently
Consistency is paramount to effective tenant screening. An essential aspect of consistency is applying uniform standards to all applicants rather than allowing emotions or personal biases to influence your decisions. Numerous hazards are connected with inconsistent and subjective screening, including the loss of a promising renter and the possibility of discrimination claims.
Legal action is both protracted and costly and a result that all rental property owners should diligently strive to avoid. Numerous state and federal laws prohibit discrimination in housing, making it imperative to comprehend their applicability to your situation and to uphold a compliance screening procedure.
Mistake #2: Not Checking the Right References
A prevalent mistake during screening is the inability to verify the correct references. During the application process, it is advisable to obtain personal and professional references from prospective tenants in addition to previous landlords. Employment history, financial references, and personal character references are appropriate categories of references to solicit. Subsequently, ensure that you reach out to all of these references and ask the right questions.
For instance, you might inquire about how long they’ve known the applicant, their professional performance, how well they care for their current living space, and any observed warning signs. Customize your list of questions based on the type of reference.
Mistake #3: Overlooking Credit and Background Checks
A significant mistake in tenant screening is neglecting to run credit and background checks on the applicant. Both assessments are generally conventional in rental markets nationwide, but some property owners and managers continue to overlook 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
The most significant mistake a rental property manager can make is neglecting to validate a prospective applicant’s rental history. Rental history is crucial as it provides insight into a renter’s likely future behavior.
When examining rental history, remain attentive to possible red flags, including late payments, property damage, and other lease agreement violations. Although one should not solely rely on your entire decision on a previous landlord’s report of a person, particularly if there were disagreements during the rental period, it can provide significant insight into how the applicant is likely to behave as a renter.
Mistake #5: Inadequate Communication with Applicants
Ultimately, the last mistake rental property owners and managers make during the screening process is the lack of communication clearly and consistency with the applicant. Applying for a rental home can be a stressful experience for renters, and dissatisfaction may quickly lead to negative feelings. The renter’s experience commences with the initial interaction with you and persists throughout your association, irrespective of its length.
To foster a positive relationship with your tenant, initiate the process by clearly articulating your application criteria, dates, and how your decision will be communicated. This approach helps avoid misunderstandings that may dishearten applicants applicants and result in negative reviews.
Get Your Screening Process Right!
By adhering to these tips and strategies, you can effectively avoid the top mistakes rental property owners and managers make during the screening process. This can result in enhanced tenant retention, fewer complications, and even boost your reputation as a landlord.
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