Tenant screening is one of the most critical steps in rental property management, but it’s surprisingly easy to make errors that can cause long-term consequences. From letting personal biases affect your decisions to skipping essential parts of the background check, ignoring key steps in the screening process can lead to significant issues, such as late payments, property damage, high tenant turnover, and legal complications.
Avoiding these mistakes is essential to attract high-quality tenants and keep your properties running smoothly. Here are some of the most common tenant screening mistakes, along with practical tips to help you avoid them through effective tenant screening practices.
Mistake #1: Failing to Screen Consistently
One of the most common tenant screening mistakes is applying inconsistent criteria to applicants. Tenant screening must be objective and consistent to ensure legal compliance and avoid personal biases. Letting emotions or personal preferences influence your decisions can result in unfair treatment and open the door to legal action.
To avoid this, use the same screening process for every applicant. Federal laws prohibit discrimination in housing, so it’s crucial to follow legal guidelines at every stage of the application process. Avoiding these mistakes and following a fair, uniform system is the best way to stay compliant and protect your rental property business.
Mistake #2: Not Checking the Right References
A critical step in the screening process is verifying the correct references. During the application process, be sure to collect and verify personal and professional references from prospective tenants. This includes references from previous landlords, employment history, financial references, and personal character references. Then, be sure to contact all of these references and ask the right questions.
Once gathered, contact each reference and ask the right questions. Find out how long they’ve known the applicant, how they maintain their current living space, and if they’ve exhibited responsible behavior. The type of reference should guide the questions you ask to ensure you get the most accurate assessment of the applicant’s history.
Mistake #3: Overlooking Credit and Background Checks
Skipping credit and background checks is a mistake in tenant screening that can result in significant issues down the line. These assessments are essential parts of the background check and provide critical insight into the applicant’s financial reliability and history.
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
Another mistake a rental property manager can make is overlooking a tenant’s rental history. This is an essential component of the screening process because it reflects how an applicant may behave in your rental property.
Always review previous landlord feedback for issues like lease agreement violations, property damage, or consistent late payments. A history of disagreements doesn’t necessarily mean an applicant will be a bad tenant, but it’s a factor worth considering to avoid problems.
Mistake #5: Inadequate Communication with Applicants
Poor communication is one of the top mistakes rental property owners and managers make during the screening process. Applying for a home can be stressful, and failing to communicate clearly can result in misunderstandings and negative feelings.
It’s important to communicate clearly and consistently with applicants. Let them know what to expect, what documents to submit, and how decisions will be made. A transparent process helps reduce stress, builds trust, and fosters a positive relationship with your future tenant—ultimately improving tenant retention and reducing the likelihood of negative reviews.
Get Your Screening Process Right!
Avoiding the top mistakes rental property owners and managers make during the tenant screening process will lead to better outcomes. These practical tips will help you attract better tenants, avoid legal action, and boost your reputation as a landlord.
If tenant screening feels overwhelming, you’re not alone. To simplify and enhance your tenant screening in Three Forks, Real Property Management Bozeman offers a streamlined screening process that includes all key steps and ensures legal compliance. Contact us online or call 406-586-2226 to get started with expert property management you can trust.
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.
