Tenant screening ranks high among critical steps in rental property management, but errors can lead to trouble. Letting personal biases guide you or missing essential parts of the background check and key steps in the screening process can trigger significant issues, including late payments, damage, or legal complications. By avoiding these mistakes, you’ll attract high-quality tenants and keep your properties running smoothly. Here are common tenant screening mistakes with practical tips for effective tenant screening.
Mistake #1: Failing to Screen Consistently
Consistency drives effective tenant screening. When emotions or personal biases influence your decisions, you risk losing tenants or facing Legal action, which property owners and managers strive to avoid. Federal laws prohibit discrimination in housing, so a mistake during screening like inconsistent rules can spark lawsuits. Keep your screening process 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 credit and background checks on applicants is a major mistake in tenant screening. These checks are standard and provide property owners with essential renter information. 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
Overlooking Rental history is a critical mistake a rental property manager can make, as it predicts renter’s likely future behavior. Check previous landlord’s report for lease agreement violations or including late payments. Even with disagreements during the rental period, it shows how they behave as a renter, avoiding a mistake rental property owners and managers make during the screening process.
Mistake #5: Inadequate Communication with Applicants
Not communicate clearly and consistently with the applicant is another mistake rental property owners and managers make during the screening process. The application can be a stressful experience for renters, fostering negative feelings. Build a positive renter’s experience throughout your association by explaining 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 Southeast Idaho handle tenant screening in Rigby with our streamlined screening process and expert property management. Contact us online or call 208-522-2400 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.
