Tenant screening is a cornerstone of critical steps in rental property management, but missteps can create problems. When personal biases creep in or essential parts of the background check and key steps in the screening process are skipped, you risk significant issues like including late payments, damage, or legal complications. Avoiding these mistakes helps attract high-quality tenants and keep your properties running smoothly. Below are common tenant screening mistakes with practical tips for effective tenant screening.
Mistake #1: Failing to Screen Consistently
For effective tenant screening, consistency is vital. Allowing emotions or personal biases influence your decisions can lead to missed tenants or Legal action, which property owners and managers aim to avoid. Federal laws prohibit discrimination in housing, and a mistake during screening like uneven standards invites trouble. A fair screening process keeps you compliant.
Mistake #2: Not Checking the Right References
A frequent mistake in tenant screening is failing to verify the correct references. During the application process, request personal and professional references from prospective tenants, including previous landlords, Employment history, financial references, and personal character references. 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
Skipping run credit and background checks on the applicant is a major mistake in tenant screening. These assessments are standard in rental markets nationwide, helping property owners and managers 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 worst mistake a rental property manager can make is bypassing Rental history, which sheds light on renter’s likely future behavior. Look for lease agreement violations or including late payments in the previous landlord’s report. Despite disagreements during the rental period, this shows how they behave as a renter, preventing a mistake rental property owners and managers make during the screening process.
Mistake #5: Inadequate Communication with Applicants
A frequent mistake rental property owners and managers make during the screening process is failing to communicate clearly and consistently with the applicant. The application process is a stressful experience for renters, risking negative feelings. Shape a positive renter’s experience throughout your association by detailing your application, timelines, and how your decision will be communicated to avoid misunderstandings and result in negative reviews.
Get Your Screening Process Right!
With these tips and strategies, avoid the top mistakes rental property owners and managers make, enhancing tenant retention and helping boost your reputation as a landlord. Diligent tenant screening secures great tenants.
Let Real Property Management One Source handle tenant screening in Prosper with our streamlined screening process and expert property management. Contact us online or call 214-721-0727 for support!
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.
