Tenant screening is a cornerstone of critical steps in rental property management, but errors can lead to significant challenges. Allowing personal biases to guide decisions or neglecting essential parts of the background check and key steps in the screening process can cause significant issues, including late payments, property damage, high turnover, or legal complications. Avoiding these mistakes helps attract high-quality tenants and keep your properties running smoothly. Explore common tenant screening mistakes with practical tips for effective tenant screening to protect your investment.
Mistake #1: Failing to Screen Consistently
Consistency is crucial for effective tenant screening. When emotions or personal biases influence your decisions, you risk missing quality tenants or facing Legal action, which property owners and managers strive to avoid. Federal laws prohibit discrimination in housing, and a mistake during screening, such as inconsistent criteria, can trigger lawsuits. A standardized screening process ensures compliance and fairness, safeguarding your business from legal risks.
Mistake #2: Not Checking the Right References
Another common mistake during screening is failing to verify the correct references. As part of the application process, you should request personal and professional references from prospective tenants in addition to previous landlords. Employment history, financial references, and personal character references are all suitable types of references to request. 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
A third big mistake in tenant screening is failing to run credit and background checks on the applicant. Both assessments are relatively standard in rental markets nationwide, but some property owners and managers still miss this opportunity to 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
A critical mistake a rental property manager can make is neglecting Rental history, which predicts renter’s likely future behavior. Review the previous landlord’s report for lease agreement violations, including late payments, or damage. Despite disagreements during the rental period, this data reveals how applicants behave as a renter, preventing a mistake rental property owners and managers make during the screening process.
Mistake #5: Inadequate Communication with Applicants
Failing to 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, leading to negative feelings. A positive renter’s experience starts early and lasts throughout your association. To foster a positive relationship with your tenant, clarify your application requirements, timelines, and how your decision will be communicated to avoid misunderstandings that may result in negative reviews.
Get Your Screening Process Right!
By following these tips and strategies, you can easily avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can lead to better tenant retention, fewer headaches, and even boost your reputation as a landlord.
Thorough tenant screening can be time-consuming. Want to leave this task to professionals and enhance your tenant screening in Mahwah? Get in touch with Real Property Management Concierge. Our quality services include a streamlined screening process, ensured legal compliance, and more. Contact us online or call 201-514-1603 for 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.
