Tenant screening is absolutely one of the most important steps in rental property management, but anyhow it’s pretty easy to make mistakes that could prompt expensive problems and headaches at a later time. Whether it’s letting personal biases influence decisions or overlooking essential parts of the background check, leaving undone key steps in the screening process can greatly bring about major issues such as late payments, property damage, high turnover, and even legal complications.
The very good news is that avoiding these mistakes can utterly help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and quite a few practical tips on how to fend them off.
Mistake #1: Failing to Screen Consistently
Consistency is the relevant key to effective tenant screening. An integral part of consistency is being certain that you are putting to use the same criteria for every applicant rather than allowing emotions or personal biases influence your decisions. There are quite a lot of risks of failing to screen consistently and objectively, embodying missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both demandingly time-consuming and super expensive, and an adverse aftermath all rental property owners should work actively to avoid. A number of state and federal laws prohibit discrimination in housing, and it is so important to understand how those laws apply to you and to continually 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 meticulously ask prospective tenants for personal and professional references together with previous landlords. Employment history, financial references, and personal character references are all preferable types of references to oblige for. But afterward, be certain to properly contact all of these references and ask the right questions.
For a case in point, 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 ascertained. Corresponding to the type of reference, you should conform your list of questions suitably.
Mistake #3: Overlooking Credit and Background Checks
A third big mistake in tenant screening is neglecting to run credit and background checks on the applicant. Both assessments are actually standard in rental markets nationwide, but with that said, many property owners and managers still miss this chance to learn valuable information about their renters.
Credit and background checks tell a story with regards to a person and can help you identify possible red flags, as for instance 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 denial of an application, these checks do provide you with exactly what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Perhaps the colossal mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is very important to check out in as much as it can give you proper insight into a renter’s likely future behavior.
When confirming rental history, make sure to attentively watch for potential red flags, by way of illustration late payments, property damage, and other lease agreement violations. While your final decision should not entirely be made from a previous landlord’s report of a person, particularly if there were disagreements during the rental period, it can furnish worthwhile insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One final thing to consider, 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 really stressful experience for a renter, and frustration can easily build up into bad feelings. Note that your renter’s experience initially begins with the first interaction with you and will continue throughout your association, however long that may be.
To foster a positive relationship with your tenant, get off on the right foot with transparency on your application requirements, timelines, and how your decision will be communicated. Consequently, you can effectively avoid misunderstandings that could frustrate or scare applicants and result in negative reviews.
Get Your Screening Process Right!
By minding these tips and strategies, you can completely avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can create better tenant retention, fewer trials, and even boost your reputation as a landlord.
Great tenant screening can be tediously time-consuming. If you think it’s best to leave this task to professionals and intensify your tenant screening in Suwanee, contact Real Property Management Executives Greater Atlanta. Our fabulous services embody a streamlined screening process, strict adherence to all housing laws, and much more! Contact us online or call 678-765-8383 for experienced 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.
