Tenant screening is one of the most critical steps in rental property management, but it’s easy to make mistakes that could lead to costly headaches later on. Whether it’s letting personal biases influence decisions or skipping essential parts of the background check, overlooking key steps in the screening process can lead to significant issues, including late payments, property damage, high turnover, and even legal complications.
The good news is that avoiding these mistakes can help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes, along with practical tips on how to avoid them.
Mistake #1: Failing to Screen Consistently
Effective tenant screening relies on consistency. Using the same criteria for all applicants instead of letting emotions or personal biases influence your decisions. Failing to screen tenants consistently and objectively can lead to serious risks, such as overlooking qualified applicants and facing potential discrimination lawsuits.
Legal action is costly and time-consuming, making them an outcome every rental property owner should strive to avoid. State and federal laws strictly prohibit discrimination in housing, making it vital for landlords to understand these regulations and ensure their screening process remains compliant.
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
Perhaps the worst mistake a rental property manager can make is failing to verify a potential applicant’s rental history. Rental history is essential to check because it can give you insight into a renter’s likely future behavior.
When reviewing rental history, be vigilant for potential red flags, such as late payments, property damage, and other lease agreement violations. While you should not base your entire decision on a previous landlord’s report of a person, especially if there were disagreements during the rental period, it can offer valuable insight into how the applicant is likely to behave as a renter.
Mistake #5: Inadequate Communication with Applicants
Finally, 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 renters, and frustration can easily escalate into negative feelings. Remember that your renter’s experience begins with the first interaction with you and will continue throughout your association, regardless of its duration.
To foster a positive relationship with your tenant, start on the right foot by being transparent about your application requirements, timelines, and how your decision will be communicated. In this way, you can avoid misunderstandings that could frustrate or discourage applicants and 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 Everett? Get in touch with Real Property Management North Puget Sound. Our quality services include a streamlined screening process, ensured legal compliance, and more. Contact us online or call 425-527-6562 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.
