Tenant screening is one of the most critical steps in rental property management, but it’s surprisingly easy to make mistakes that can lead to long-term consequences. Whether it’s allowing personal biases to interfere or neglecting essential parts of the background check, skipping key steps in the screening process can lead to significant issues, including late payments, legal complications, and high tenant turnover.
Avoiding these mistakes is vital to attract high-quality tenants and keep your properties running smoothly. Below are some of the most common tenant screening mistakes and practical tips for avoiding them with effective tenant screening practices.
Mistake #1: Failing to Screen Consistently
Allowing emotions or personal biases to influence your decisions is one of the biggest mistakes a rental property owner or manager can make. Consistency in applying your screening criteria is key to a fair and lawful process. Tenant screening should never vary based on personal feelings or assumptions.
To avoid potential legal action, which can be time-consuming and costly, ensure your screening process is guided by clear criteria and aligned with fair housing regulations. Federal laws prohibit discrimination in housing, and adhering to these laws is essential to avoid any mistake that could lead to legal complications.
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
Overlooking rental history is a major mistake a rental property manager can make. Rental history provides insight into a renter’s likely future behavior, including how well they follow a lease agreement, handle property care, and make timely payments.
Pay attention to a previous landlord’s report, even if there were disagreements during the rental period. Their feedback can give you a better idea of how the applicant might behave as a renter, helping you avoid costly mistakes.
Mistake #5: Inadequate Communication with Applicants
Effective communication is essential during the screening process. A lack of clear, consistent communication is a common tenant screening mistake that can lead to negative feelings and misunderstandings.
To foster a positive relationship with your tenant, be upfront about your application requirements, the process, and how you’ll communicate your decision. From the initial application to the final decision, transparency can improve the renter’s experience and help avoid stress, misunderstandings, or negative reviews.
Get Your Screening Process Right!
Avoiding the top mistakes rental property owners and managers make during the screening process leads to better tenant retention and fewer complications. With these tips and strategies, you can improve your screening process and boost your reputation as a landlord.
Thorough tenant screening can be time-consuming. If you’re looking to improve your tenant screening in Brookhaven, Real Property Management Reimagined can help. Our expert property management services include a streamlined screening process that ensures compliance, avoids the top screening mistakes, and delivers peace of mind. Contact us online or call 470-945-4686 today for expert guidance and support.
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.
