4 Mistakes Newbie Landlords Often Make While Screening Tenants

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4 Mistakes Newbie Landlords Often Make While Screening Tenants

8 December 2014
 Categories: Real Estate, Blog

Are you a newbie landlord? One thing that many new landlords forget to complete is their tenant screenings. A tenant screening is a background check that ensures that a tenant is in good credit and legal standing. Without a tenant screening, you could quickly end up with damaging, deadbeat tenants that are almost impossible to remove. 

1. Completing the Tenant Screening Last Minute

A tenant screening does take some time to produce, especially if you want it to be accurate. Many landlords choose to do the tenant screening last minute as a formality, but that's a bad idea; it could hold up the entire process, or you could discover an issue with the tenant when you're just about to hand over the keys. It's best to take a fee from the tenant for the screening to begin with and to screen as applications come in.

2. Only Screening Some Tenants

If you're going to screen one tenant, you need to screen them all. Screening only some tenants can look like discrimination--and, besides, it doesn't give you an appropriate picture of all of your tenant options. Since the cost of the screening can be passed on to the tenants themselves, there really is no reason not to screen every single tenant. You may even be able to get discounted rates for bulk screenings. 

3. Not Listening to the Report

Many landlords, especially new ones, make up their minds about their tenants when they first meet them. Perhaps they seem like a nice young couple, or maybe like a sweet older lady. Regardless, it's a bad idea to form a first impression and then ignore the results of a report. People are not always who you think they are, and the report itself will be hard evidence as to what type of tenant they really are. 

4. Not Asking the Tenant for More Information

It's always a good idea to inquire if something jumps out at you about the tenant. There are some situations that can be explained. As an example, if the tenant seems responsible but has bad credit, an inquiry could lead you to find out that the credit score was erroneous. But don't accept their word as proof; make sure that you get something in writing.

A good tenant screening company, such as Metropolitan Tenant, will be able to handle most of the issues for you and sidestep any major problems. You can usually save a significant amount of both time and money by getting your screenings done for you.

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Talking About Real Estate Finances

Welcome to my website about real estate finances. My name is Reina. I would like to talk to you all about the financial aspect of buying, selling and renting real estate. I will share tips and tricks you can use to keep your finances in check, even when the market feels unstable or you have to dip into your savings for yet another repair. I will also discuss the pros and cons of hiring a property management company to assist you in the renting process. I hope you will follow along and learn all you can about managing your real estate finances. Thanks for visiting.