Tenant screening is one of the most critical steps in rental property management, but even small mistakes can result in expensive problems down the line. Whether it’s letting personal biases creep in or skipping essential parts of the background check, missing key steps in the screening process can create significant issues, including late payments, damaged property, high turnover, and even legal complications.
Avoiding these mistakes helps you attract high-quality tenants and keep your properties running smoothly. Let’s look at some of the most common tenant screening mistakes, along with practical tips and what you can do 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 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
A major mistake a rental property manager can make is not checking rental history, which often predicts future behavior. Verifying rental history is crucial, as it offers valuable insight into how a renter’s likely future behavior.
When evaluating rental history, watch for warning signs such as late payments, property damage, or lease agreement violations. Although a previous landlord’s report should not be the sole factor in your decision, especially if there were disagreements during the rental period, it can still provide useful 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!
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 Dallas? Get in touch with Real Property Management Engage. Our quality services include a streamlined screening process, ensured legal compliance, and more. Contact us online or call 214-257-0101 for expert property management services.
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