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
Consistency is the key to effective tenant screening. A significant part of consistency is ensuring that you use the same criteria for every applicant rather than letting emotions or personal biases influence your decisions. There are several risks associated with failing to screen consistently and objectively, including missed opportunities for a great tenant and potential lawsuits for discrimination.
Legal action is both time-consuming and expensive and an outcome that all rental property owners should actively work to avoid. Many state and federal laws prohibit discrimination in housing, and it is essential to understand how these laws apply to you and to maintain a compliant screening process.
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 major mistake in tenant screening is neglecting to run credit and background checks on the applicant. Although assessments are standard practice in rental markets nationwide, some property owners and managers still overlook this critical step to learn valuable information about their renters.
Credit and background checks provide insight into an applicant’s history and can help identify possible red flags, such as prior evictions, criminal history, or financial difficulties. Although not every negative item on a credit report or a background check should automatically disqualify an applicant from an application, these reports provide 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!
Following these tips and strategies helps you avoid the top mistakes rental property owners and managers make during the screening process, leading to stronger tenant retention, fewer management challenges, and even boost your reputation as a landlord.
Thorough tenant screening takes time and expertise. If you’d like professionals to handle this for you and improve your tenant screening in North Fort Myers. Connect with Real Property Management Instant Equity (Fort Myers). We offer a streamlined screening process, full legal compliance, and more. Contact us online or call 239-628-1524 to learn how our expert property management services can support you.