Tenant screening is one of the most critical steps in rental property management, but it’s easy to make costly errors that could derail your success. Whether it’s allowing personal biases to sway your decision-making or failing to complete essential parts of the background check, neglecting key steps in the screening process can cause significant issues. These problems may include late payments, property damage, lease violations, high turnover, and even legal complications.
The encouraging news is that avoiding these common tenant screening mistakes can help attract high-quality tenants and keep your properties running smoothly. Below are practical tips for avoiding the most frequent errors in tenant screening.
Mistake #1: Failing to Screen Consistently
One of the most common screening mistakes is failing to apply the same criteria to every applicant. Effective tenant screening requires consistent methods and objective standards to ensure fairness and compliance. Emotions or personal biases should never influence your decisions.
Legal action is a serious risk for landlords who fail to follow fair housing laws. Federal laws prohibit discrimination in housing, and understanding how these regulations apply to your practices is essential. Avoiding these legal missteps will help you remain compliant and build a trustworthy screening process.
Mistake #2: Not Checking the Right References
Failing to verify references is a frequent mistake during the application process. As part of tenant screening, always request personal and professional references, including previous landlords, employment history, and financial or personal character references from prospective tenants.
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
Neglecting credit and background checks is a significant mistake in tenant screening. These assessments are standard across rental markets nationwide and help property owners and managers learn valuable information about potential 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
Another major mistake a rental property manager can make is failing to check the applicant’s rental history. This is a crucial step in understanding a renter’s likely behavior in your property.
Look out for late payments, lease agreement violations, property damage, and any complaints made by previous landlords. While one negative report shouldn’t dictate your entire decision—especially if it stems from a known disagreement—it can still provide insight into how the applicant might behave as a renter.
Mistake #5: Inadequate Communication with Applicants
Lack of clear and consistent communication with applicants is one of the most avoidable mistakes rental property owners and managers make. The application process can be stressful, and unclear expectations often result in frustration and negative feelings.
To foster a positive relationship with your tenant from the start, be transparent about your application criteria, timelines, and how your decision will be communicated. This helps avoid misunderstandings that could lead to dissatisfaction or negative reviews, both of which can hurt your reputation.
Get Your Screening Process Right!
By following these practical tips and strategies, property owners and managers can steer clear of the top tenant screening mistakes. Doing so leads to stronger tenant retention, reduced turnover, and a more effective rental property management process. It also helps boost your reputation as a responsible and professional landlord.
Tenant screening can be a time-consuming process. If you’d like to enhance your tenant screening in Kaneohe and make the process more efficient, Real Property Management Honolulu is here to help. Our expert property management services include a streamlined screening process, legal compliance, and more. Contact us online or call 808-445-9500 to partner with a team committed to helping you succeed.
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.
