Tenant screening is one of the most important steps in rental property management, but still, it’s certainly very easy to make mistakes that could provoke financially harmful headaches down the line. Whether it’s letting personal biases influence decisions or skipping essential parts of the background check, leaving key steps in the screening process can bring in major issues such as late payments, property damage, high turnover, and even legal complications.
The best thing 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 few practical tips on how to keep them off.
Mistake #1: Failing to Screen Consistently
Consistency is the central key to effective tenant screening. An important part of consistency is nailing down that you are properly utilizing the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are several risks of failing to screen consistently and objectively, including missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both time-intensive and financially excessive and an end result all rental property owners should work actively to avoid. Most state and federal laws prohibit discrimination in housing, and it is crucial 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 meticulously ask prospective tenants for personal and professional references added to previous landlords. Employment history, financial references, and personal character references are all good types of references to ask for. Afterward, nail down to actually contact all of these references and ask the right questions.
By way of illustration, 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 perceived. Determined by the type of reference, you should attune your list of questions accordingly and naturally.
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 typically standard in rental markets nationwide, but even so, a great number of property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell a helpful story in relation to 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 refusal of an application, these checks do provide you with what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Seemingly, the most serious mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is crucial to dig into, given that it can give you data and valuable insight into a renter’s likely future behavior.
When examining rental history, never forget to watch for potential red flags, as for example late payments, property damage, and other lease agreement violations. While your entire decision should not be totally based on a previous landlord’s report of a person, certainly if there were disagreements during the rental period, it can impart gainful insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
On that note, 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 completely magnify into bad feelings. Be mindful that your renter’s experience starts off 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, start successfully with transparency on your application requirements, timelines, and how your decision will be communicated. Thus, you can avoid misunderstandings that could frustrate or intimidate applicants and result in negative reviews.
Get Your Screening Process Right!
By being guided by and utilizing these tips and strategies, you can carefully avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can give rise to better tenant retention, fewer complications, and even boost your reputation as a landlord.
Accurate tenant screening can be time-intensive. If you decide to leave this task to professionals and improve your tenant screening in Hampton, contact Real Property Management Seacoast New Hampshire. Our top-caliber services involve a streamlined screening process, complete compliance with all housing laws, and much more! Contact us online or call 603-343-2202 for competent 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.
