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
Consistency is crucial for 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, 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 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
Ignoring Rental history is a major mistake a rental property manager can make, as it predicts renter’s likely future behavior. Check previous landlord’s report for lease agreement violations or including late payments. Even with disagreements during the rental period, it shows how they behave as a renter, avoiding a mistake rental property owners and managers make during the screening process.
Mistake #5: Inadequate Communication with Applicants
Failing to communicate clearly and consistently with the applicant is a mistake rental property owners and managers make during the screening process. The application can be a stressful experience for renters, leading to negative feelings. Ensure a positive renter’s experience throughout your association by clarifying your application, timelines, and how your decision will be communicated to avoid misunderstandings 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 Southwest DC? Get in touch with Real Property Management Washington DC. Our quality services include a streamlined screening process, ensured legal compliance, and more. Contact us online or call 202-813-9993 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.
