Tenant screening is among the critical steps in rental property management, yet errors can lead to costly consequences. Allowing personal biases to guide decisions or neglecting essential parts of the background check and key steps in the screening process can result in significant issues, such as including late payments, property damage, high turnover, or legal complications. By avoiding these mistakes, you can attract high-quality tenants and keep your properties running smoothly. Here are common tenant screening mistakes paired with practical tips to achieve effective tenant screening and minimize risks.
Mistake #1: Failing to Screen Consistently
Consistency is vital for effective tenant screening. When emotions or personal biases influence your decisions, you may overlook excellent tenants or face Legal action, an outcome property owners and managers strive to avoid. Federal laws prohibit discrimination in housing, and a mistake during screening, such as applying uneven criteria, can lead to lawsuits. To stay compliant, maintain a standardized screening process that ensures fairness across all applicants and protects your business from legal risks.
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
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
The biggest mistake a rental property manager can make is not verifying an applicant’s rental history. This check provides insight into their future behavior. Watch for red flags like late payments, property damage, and lease violations. Although you shouldn’t rely solely on a past landlord’s report, it offers valuable information about the applicant’s potential 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 Katy? Get in touch with Real Property Management Affiliates. Our quality services include a streamlined screening process, ensured legal compliance, and more. Contact us online or call 713-429-0411 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.
