Tenant Screening Mistakes to Avoid for Your Erie Rental

As a landlord, having qualified tenants holds a lot of value. It’s one of the top goals, right? Which means that having a proper tenant screening process in place is crucial. That being said, there are a lot of pitfalls rental property owners can fall into when it comes to vetting tenants. Avoiding tenant screening mistakes helps protect your investment, reduces the risk of evictions, and maintains a stable cash flow. When this important piece is rushed or even skipped altogether, it could end up costing you thousands in unpaid rent, property damage, and legal fees. So let’s go over how to dodge these pitfalls and avoid costly tenant screening mistakes for your Erie rental property.

This is a big one and odd that it even happens to begin with. Relying on gut feelings or first impressions only creates a recipe for disaster. Not to mention there’s a risk of potential claims of discrimination or fair housing violations that come with doing business this way. Conducting a thorough tenant screening remains the best way to properly vet potential tenants. These should include background checks, credit checks (when permitted), rental history checks, and income verification.

Just make sure to remain compliant with local laws and regulations when doing so. For example, in Colorado, you can’t deny an applicant applying with a Section 8 or other government-backed voucher for credit reasons, nor can you deny an applicant based on the source of their income.

Believe it or not, but good credit does not always equal a reliable tenant. For example, you could have a potential tenant with a 750 score, but caused significant damage to their last property or started a neighborhood feud that caused a lot of headaches. On the flip side, a tenant with a 600 credit score could treat the property like their own and pay on time without issue. Credit scores alone don’t paint the full picture; only part of it. A proper tenant screening includes rental history checks, background checks, and eviction record checks.

Consistency is the key to equality when it comes to tenant screening. Waiving certain requirements for one person and not another can lead to potential discrimination and fair housing violations. Even if done unintentionally, the consequences remain the same. To avoid costly violations and potential legal trouble, create a written tenant screening policy and stick to it. Apply the same approval criteria and requirements for everyone and approve and deny consistently based on those standards. If you make an exception for one, be ready to make the exception for all and update your policy accordingly.

Having a professional eye helps a lot in this regard. If you’re unsure how to set a thorough tenant screening policy, consider hiring a property management company like Real Property Management Colorado to help.

Generally, it’s always better to overestimate than under, and the same is true when it comes to handling residents. Many landlords fall into the thought of “Well, if the tenant is bad, I’ll just evict them.” But have you ever stopped to consider just how much an eviction really costs? It’s more than just the court costs and filing fees. It’s the lost rent, property damage, legal fees, and time it takes to go through the process from start to finish.

Evictions are no short jaunt through the park either. They can extend months between filing and scheduling, and that’s before you even get before a judge. Now take into account the timeline for scheduling the actual removal of the tenants belongings with the sheriff’s department and you’ve lost significant time, money, and energy in the whole endeavor.

Long story short, a bad tenant can cost upwards of thousands of dollars. In comparison, investing that small amount upfront for conducting a proper tenant screening makes a lot more sense for both your wallet and your mental health.

No tenant screening process is infallible. There are certain things and situations you’re not going to find or predict no matter how thorough your screening process is. Job loss, medical issues, personality clashes, all of these aren’t always accounted for. With that said, however, checking the things you can screen for are still your best defense against costly mistakes. Investing your time and effort upfront can help avoid potential evictions, protect your property, ensure a steady stream of income, and help you and your property continue down the road towards rental management success. It’s not just a task, but an essential step in safeguarding your greatest asset and often biggest investment.

So take the time. Invest at the start before handing over keys. Understand the laws. Create a thorough and reliable screening process and apply it across all applicants equally. And if all of this sounds too daunting and overwhelming, consider partnering with a reliable property management company to help you out. Doing so can help avoid costly tenant screening mistakes and save you time, money and a lot of stress.