One of Virginia's best cities to live in is Blacksburg. According to MarketWatch, it's included on this exclusive list because of its diverse job market, cost of living, and outdoor activities. The city's high quality of life makes it lucrative for landlords seeking a high return on their investment.
If you're one of them, safeguarding your property should be a top priority. Tenant screening can help you achieve this.
When done effectively, it can help you find a suitable tenant, minimize property damage, and avoid evictions. Otherwise, you risk losing revenue.
How can you increase your chances of finding a reliable tenant and protecting your investment? By avoiding these 4 tenant screening mistakes.
1. Skipping Background Checks
You can only start realizing a return on your investment property when it's occupied. Foregoing background checks will allow you to speed up the process and eliminate administrative costs. Although tempting, you should avoid doing this.
Renter background checks allow you to review an applicant's:
- Criminal history
- Credit status
- Previous rental behaviors
It helps ensure potential tenants are financially stable, reliable, and unlikely to cause legal or financial issues.
2. Inconsistent Tenant Screening Practices
Screening tenants effectively involves adhering to a consistent process that applies the same criteria to all applicants. This helps you avoid discrimination claims or approving unqualified tenants.
A standardized process for all applicants helps ensure fairness and compliance with Virginia's fair housing laws. Familiarizing yourself with them will allow you to implement landlord best practices, facilitate equal treatment of all applicants, and ensure you ask appropriate questions during the screening process.
3. Ignoring Red Flags
Background checks provide pertinent information about applicants. They can help you complete a thorough assessment, increasing the likelihood of choosing quality tenants and minimizing risk.
However, during the tenant screening process be vigilant about any red flags such as:
- Insufficient income
- Frequent moves and job changes
- Employment gaps
- A history of evictions
- Poor credit score
- Lack of verifiable references
- Inconsistent or missing information on the application
- A reluctance to provide the necessary documentation
A criminal record can also be a red flag. However, the Fair Housing Act prohibits discrimination based on criminal background, but some exceptions exist.
Ignoring these warning signs can lead to renting to problematic tenants who may cause issues later.
4. Failing to Verify Identity and Employment
Red flags can also become evident during the tenant verification process. Failing to verify the information provided by potential tenants can lead to significant issues.
You should confirm employment, income, and rental history to ensure applicants meet your standards. Doing this also helps you avoid renting to individuals who may have falsified their applications.
Tenant screening software can make this step more efficient and thorough, helping you make informed decisions, quickly.
Protect Your Investment With Thorough Screening Processes
A thorough tenant screening process can help you choose a quality tenant and protect your investment. However, you can only achieve this by avoiding the common tenant screening mistakes outlined above.
If you own or manage many properties, it can be a tedious process, but PMI Commonwealth can make this part of property management seamless. We leverage our state-of-the-art technology to ensure thorough and efficient screening. We'll also provide lease agreement tips to ensure your investment grows and is protected.
Contact us today to learn more!
