The median monthly rent in Phoenix, AZ is $2100, a decrease of $62 from May of 2023. With rent being 23% of a tenant's income on average, it's important to take the tenant placement process seriously.
As a landlord, you have to look further than the information you receive from rental applications. Have they rented before? What is their employment status? Do they have good credit?
What are some of the most common tenant placement mistakes landlords make when screening potential renters? Stick around while we list five of them along with expert property management tips on how to avoid them. Better the tenant-landlord relationship and reduce turnover.
1. Inadequate Tenant Screening
There is a huge risk when you do not perform sufficient background checks. You should look at several things regarding a potential tenant, including:
- What is their rental history?
- Are they currently employed?
- What is their credit score?
- Is there any type of criminal activity in their past?
- Can they provide references?
A comprehensive screening process protects landlords from potential problems down the line. Professional screening services or thorough DIY methods can help you avoid all that.
2. Ignoring Fair Housing Laws
The Fair Housing Act protects people from discrimination because of their religion, marital status, race, gender identity, and more when renting or buying a home. Ignoring these regulations can land you in serious legal trouble.
Educating yourself on local and federal fair housing laws will help you stay in compliance. And help you avoid any legal or financial risks.
3. Rushing the Process
Have you found yourself with a vacancy? While it's important to fill it with new tenants promptly, you should not rush the process.
Hasty tenant selection leaves you vulnerable to mistakes. You want to take the time to find quality tenants. Set realistic timelines for tenant placement. Make use of tenant screening software or hire a professional to streamline the process.
4. Failing to Prepare the Property
Poor property conditions can attract problematic tenants. If you want quality tenants, you need to present a well-maintained property.
If tenants have recently moved out, the property should have a thorough cleaning. Touch up paint or give the whole place a fresh coat. Repair or replace carpeting.
Make the necessary repairs before showings. Make sure appliances are in working order. A well-maintained property attracts better applicants.
5. Poor Communication and Documentation
If you fail to communicate clearly with potential tenants, you risk losing good tenants. They may misunderstand the parameters of the potential lease agreement.
Never rely on verbal agreements. Make sure all documentation is complete. Use written lease agreements and keep detailed records.
Crush Tenant Placement
Now that you know the five common mistakes in the tenant placement process and how to avoid them, you will be on your way to filling your properties with good tenants. You'll enjoy the tenant retention that comes with it.
We at PMI San Tan can help with tenant placement and more. We customize our services to meet the unique needs of our clients. Schedule a consultation with us today by calling 480.908.2250 or through our website.
