Tenant screening is clearly one of the most important steps in rental property management, but, as a matter of fact, it’s very simple to make mistakes that could instigate pricey headaches and problems in time to come. Whether it’s permitting personal biases to influence decisions or negating essential parts of the background check, leaving out key steps in the screening process can stir up major issues such as late payments, property damage, high turnover, and even legal complications.
The great news is that avoiding these mistakes can extremely help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and several practical tips on how to avert them.
Mistake #1: Failing to Screen Consistently
Consistency is the vitally essential key to effective tenant screening. A principal part of consistency is making sure that you are exercising the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are numerous risks of failing to screen consistently and with objectivity, including missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both time-consumingly hard and financially wasteful, and a detrimental conclusion all rental property owners should work actively to avoid. A lot of state and federal laws prohibit discrimination in housing, and it is primal to understand how those laws apply to you and to, at all times, 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 intently ask prospective tenants for personal and professional references coupled with previous landlords. Employment history, financial references, and personal character references are all suitable types of references to request. But, at the same time, make sure to really contact all of these references and ask the right questions.
Specifically, 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. Based on the type of reference, you should design your list of questions accordingly.
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 often standard in rental markets nationwide, but at the same time, a number of property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell a telling story referring 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 nonacceptance of an application, these checks do give you just what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Probably the gravest mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is primarily critical to review cause it can give you a deeper grasp of a renter’s likely future behavior.
When determining rental history, make it a point to heedfully watch for potential red flags, by way of example late payments, property damage, and other lease agreement violations. While your entire decision should not be totally determined by a previous landlord’s report of a person, specifically if there were disagreements during the rental period, it can grant you noteworthy insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One last matter to think about, 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 simply and swiftly lead to bad feelings. Know that your renter’s experience actually begins with the first interaction with you and will continue throughout your association, no matter how long that may be.
To better foster a positive relationship with your tenant, make a successful start with transparency on your application requirements, timelines, and how your decision will be communicated. Hence, you can favorably avoid misunderstandings that could frustrate or disgust applicants and result in negative reviews.
Get Your Screening Process Right!
By applying these tips and strategies, you can considerably avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can trigger better tenant retention, fewer clashes, and even boost your reputation as a landlord.
Exhaustive tenant screening can be prolonged and time-consuming. If you desire to leave this task to professionals and build up your tenant screening in West Allis, contact Real Property Management Greater Milwaukee. Our extensive services include a streamlined screening process, absolute compliance with all housing laws, and much more! Contact us online or call 262-309-6961 for accomplished 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.
