Tenant screening is one of the most important steps in rental property management, except it’s not difficult to make mistakes that could cause unprofitably expensive headaches in the future. Whether it’s letting personal biases influence decisions or skipping essential parts of the background check, disregarding key steps in the screening process can be the cause of major issues such as late payments, property damage, high turnover, and even legal complications.
The positive news is that avoiding these mistakes can totally help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and certain practical tips on how to prevent them.
Mistake #1: Failing to Screen Consistently
Consistency is the central key to effective tenant screening. An essential part of consistency is ascertaining that you are heeding and utilizing the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are a handful of risks of failing to screen consistently and unbiasedly, encompassing missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both so time-consuming and financially uneconomical, and certainly an ending all rental property owners should work actively to avoid. Various state and federal laws prohibit discrimination in housing, and it is salient to understand how those laws apply to you and to keep your screening process in compliance.
Mistake #2: Not Checking the Right References
Another top mistake during screening is failing to check the right references. As part of the application process, you should properly ask prospective tenants for personal and professional references as well as previous landlords. Employment history, financial references, and personal character references are all excellent types of references to look for. Afterward, ascertain to actually contact all of these references and ask the right questions.
By way of 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 any red flags they were aware of. Based on the type of reference, you should tailor your list of questions appropriately.
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 normally standard in rental markets nationwide, except, innumerable property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks show a clear picture and story about a person and can help you identify possible red flags, 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 just what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
In all likelihood, the greatest mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is salient to examine, taking into account it can give you awareness into a renter’s likely future behavior.
When examining rental history, always remember to watch for potential red flags as for instance, late payments, property damage, and other lease agreement violations. While your entire decision should not be determined by a previous landlord’s report of a person, exactly if there were disagreements during the rental period, it can tender helpful insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One final matter 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 stressful experience for a renter, and frustration can very quickly flourish into bad feelings. Consider that your renter’s experience starts 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 started right with transparency on your application requirements, timelines, and how your decision will be communicated. In this fashion, you can easily avoid misunderstandings that could frustrate or frighten applicants and result in negative reviews.
Get Your Screening Process Right!
By keeping these tips and strategies, you can plainly avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can elicit better tenant retention, fewer conflicts, and even boost your reputation as a landlord.
Precise tenant screening can be troublesome and time-consuming. If you’d rather choose to leave this task to professionals and, in turn, enhance your tenant screening in Brookland, contact Real Property Management DC Metro. Our splendid services include a streamlined screening process, utter compliance with all housing laws, and much more! Contact us online or call 202-269-0303 for professional and 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.
