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 creep into the process or neglecting essential parts of the background check, skipping key steps in the screening process can cause significant issues, including late payments, property damage, legal complications, and high tenant turnover.
Avoiding these mistakes is crucial to attract high-quality tenants and keep your properties running smoothly. Below are some of the most common tenant screening mistakes along with practical tips and strategies to prevent them through effective tenant screening.
Mistake #1: Failing to Screen Consistently
A critical mistake in tenant screening is applying different standards to different applicants. It is vital that rental property owners and managers maintain a consistent and fair screening process. Letting emotions or personal biases influence your decisions can result in discrimination claims and missed opportunities to place excellent tenants.
To avoid these issues, ensure you follow the same application process for every applicant. Federal laws prohibit discrimination in housing, so staying compliant means understanding those laws and applying them uniformly. Legal action can be time-consuming and expensive, so avoiding these mistakes by having a clear, consistent system in place is essential.
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 a tenant’s rental history is another mistake a rental property manager can make during the screening process. Rental history helps predict a renter’s future behavior. Overlooking this information can result in missed indicators of lease agreement violations, property damage, or consistent late payments.
Be sure to examine a previous landlord’s report carefully. While a disagreement during a rental period doesn’t automatically disqualify an applicant, it’s important to evaluate the full context to determine how the applicant is likely to behave as a renter.
Mistake #5: Inadequate Communication with Applicants
Failing to communicate effectively with applicants is one of the most common tenant screening mistakes rental property owners and managers make. Applying for a rental home can be a stressful experience, and inadequate communication can lead to confusion, frustration, and negative feelings.
To foster a positive relationship with your tenant, be transparent throughout your association. Clearly explain your application process, required documentation, and how your decision will be communicated. This transparency helps reduce stress, avoids misunderstandings, and promotes tenant retention. It also boosts your reputation as a landlord and prevents negative reviews..
Get Your Screening Process Right!
Avoiding the top mistakes rental property owners and managers make during the screening process will help you attract high-quality tenants and build a better experience for everyone involved. By following these tips and strategies, you can improve tenant retention and maintain a well-managed rental property.
Tenant screening doesn’t have to be overwhelming. If you’re ready to enhance your tenant screening in Redmond, Real Property Management Ignite is here to help. Our expert property management team offers a streamlined screening process that ensures compliance with housing laws and covers all the key steps in the screening process. Contact us online or call 541-550-7002 today to get started with professional support you can count on.
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.
