Tenant screening is, doubtless, one of the most important steps in rental property management, but it’s too easy to make mistakes that could cause extravagant headaches and troubles henceforward. Whether it’s letting personal biases influence decisions or overlooking essential parts of the background check, skipping key steps in the screening process can bring about major issues such as late payments, property damage, high turnover, and even legal complications.
The wonderful news is that avoiding these mistakes can tremendously help you attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes and a number of practical tips on how to eliminate them.
Mistake #1: Failing to Screen Consistently
Consistency is the indispensable key to effective tenant screening. A principal part of consistency is always remembering that you are sticking to the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are plenty of risks of failing to screen consistently and objectively, like for instance missed opportunities for a great tenant and even potential discrimination lawsuits.
Legal action is both time-consumingly troublesome and really expensive, and an unfavorable result all rental property owners should work actively to avoid. A lot of state and federal laws prohibit discrimination in housing, and it is pertinent to understand how those laws apply to you and to consistently keep your screening process in compliance.
Mistake #2: Not Checking the Right References
Another top mistake during screening is neglecting to check the right references. As part of the application process, you should thoroughly ask prospective tenants for personal and professional references as well as previous landlords. Employment history, financial references, and personal character references are all necessary types of references to request. But then, always follow through with contacting all of these references and ask the right questions.
As a sample, 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 observed. Relative to the type of reference, you should match your list of questions typically.
Mistake #3: Overlooking Credit and Background Checks
A third big mistake in tenant screening is missing to run credit and background checks on the applicant. Both assessments are usually standard in rental markets nationwide, but even so, property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks tell an obvious story about a person and can help you identify possible red flags, for a case in point 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 give you simply what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
Maybe the gravest mistake a rental property manager can make is not verifying the rental history for an applicant. Rental history is pertinent to look into as it can give you a deep sense and a preview of a renter’s likely future behavior.
When ascertaining rental history, nail down to carefully watch for potential red flags involving late payments, property damage, and other lease agreement violations. While your entire decision should not be only influenced by a previous landlord’s report of a person, definitely if there were disagreements during the rental period, it can offer helpful insight into how the applicant will behave as a renter.
Mistake #5: Inadequate Communication with Applicants
One thing more to consider, a last mistake rental property owners and managers make during the screening process is neglecting to communicate clearly and consistently with the applicant. Applying for a rental home can be a stressful experience for a renter, and frustration can swiftly lead to bad feelings. Do not forget that your renter’s experience always begins with the first interaction with you and will continue throughout your association, no matter how long that may be.
To foster a positive relationship with your tenant, get off to a good start with transparency on your application requirements, timelines, and how your decision will be communicated. In this manner, you can carefully avoid misunderstandings that could frustrate or disappoint applicants and result in negative reviews.
Get Your Screening Process Right!
By keeping and observing these tips and strategies, you can practically avoid the top mistakes rental property owners and managers make during the screening process. This, in turn, can cause better tenant retention, fewer demands, and even boost your reputation as a landlord.
Meticulous tenant screening can be utterly time-consuming. If you want to leave this task to professionals and greatly improve your tenant screening in Oklahoma City, contact Real Property Management Elevate. Our exceptional services encompass a streamlined screening process, full compliance with all housing laws, and much more! Contact us online or call 405-876-7611 for trustworthy property management services.
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