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 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
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
One last mistake rental property owners and managers make during the screening process is not keeping communications 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. A renter’s experience starts with their very first interaction with you and continues throughout your association for the entire duration of your relationship.
To foster a positive relationship with your tenant, begin by clearly outlining your application requirements, expected timelines, and how your decision will be communicated. This approach helps avoid misunderstandings that may frustrate applicants or 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 Virginia Beach. Connect with Real Property Management Unity. We offer a streamlined screening process, full legal compliance, and more. Contact us online or call 757-577-9882 to learn how our expert property management services can support you.
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