How To Avoid Common Rental Application Mistakes

Landlords lay the foundation for thriving relationships with their tenants through a fine-tuned rental application process. 

That said, this process–and the related paperwork–can be a landmine for landlords, leading to costly mistakes and endless headaches.

Below, we’re offering a guide on avoiding blunders during the rental application process, helping ensure you fill your rental unit vacancies with the most qualified tenants. 

Don’t Violate Fair Housing Laws

Familiarize yourself with fair housing regulations and laws. 

The Fair Housing Act protects potential tenants from acts of discrimination targeting characteristics such as:

• Religion
• Race
• Color
• Sex
• Disability
• Familial status
• National origin

Fair housing law compliance requires that all applicants are treated fairly and equally. Remove personal preferences and biases from the application process while prioritizing objective criteria.

Ensure All Applications Are Complete

Perform rigorous due diligence to ensure the application forms are filled out with all necessary information.

When applications are incomplete, you’ll not have the whole picture of an applicant’s qualifications. Furthermore, it could cause delays in your tenant search.

Reduce questions and complications by making an easy-to-comprehend application. Also, clearly communicate to potential renters your need for the following information:

• Income
• Rental history
• References

These details will enable you to make the best–and most informed–decision.

Rental Rates Must Be Correct

Competitive but reasonable rental rates will attract the most viable tenants.

You’ll land on the best rates after thoroughly researching the local rental market and weighing other factors to determine your property’s fair market value. 

It’s crucial to hit the mark with rental rates. 

Going too high will be like tenant repellant. Nobody wants to get raked over the coals when they know a property of similar quality down the street is charging half the price.

Conversely, an overly low rate will raise different types of alarm bells. Potential tenants will be concerned about the property’s conditions and wonder what secrets you’re hiding.

Finding that perfect middle ground–not too high or too low–will garner the attention of the upstanding tenants you want to attract.

Charge A Reasonable Price For The Security Deposit

A security deposit is an absolute must as a landlord. You want to give tenants added impetus to treat your property with the utmost respect.

However, there’s another side to this coin. Many landlords charge too much for their security deposit, scaring off potentially great applicants. 

Moreover, excessive security deposit prices can break state and local laws. Thus, you might land in legal trouble if you’re unaware of these limitations.

Even if the state limit is relatively high, research the standard amounts for similar properties in the surrounding neighborhood. The closer you are to average, the likelier you are to attract the most ideal tenants.

Take Your Time When Screening Tenants

Ensuring all i’s are dotted and t’s crossed on rental applications will help you find the most qualified and reliable tenants. Yet, one crucial component will prove itself a pivotal difference-maker–the tenant screening process.

Finding the most suitable tenant is a nuanced process. As the old saying goes, you don’t want to judge a book by its cover. 

Scrutiny–of a reasonable variety–is a must. You want a trustworthy tenant to treat your property with the utmost respect while always being on time with rent. 

Thus, you’ll want to verify the following categories for each tenant:

• Income
• Credit history
• Rental history
• References

We understand the eagerness to fill a rental property vacancy. The resulting income coming your way is a compelling proposition. Still, the screening process requires a metaphorical fine-tooth comb to ensure you don’t miss red flags or other essential details.

Tips For Application Evaluation

Below are tips for evaluating a tenant application:

• Quickly scanning applications will lead to oversights. Read each form thoroughly to ensure all necessary information is provided and all sections are filled.
• Check the applicant’s identification documents (e.g., driver’s license) to confirm their identity. Assess their criminal history with background checks to ensure no red flags exist.
• Ask potential tenants for documents that verify their employment stability and income (e.g., employment verification letters, tax returns, and pay stubs).
• Running a credit check on your applicant will convey their history of trustworthy financial behavior. More specifically, it’ll show they’ll be on time for rent. You’ll need to ask applicants for permission to do this.
• Contact an applicant’s prior landlords and ask about their lease term adherence, payment history, and potential rental issues.
• Contact the applicant’s provided references (professional and personal) to glean insights about their reliability and character.
• Compare all applications you receive to decide who best meets your criteria.
• Examine whether an applicant’s lifestyle aligns with your property. For example, a large family won’t necessarily be ideal for a meagerly-sized apartment unit.

We understand the rental application process is a lot of work. Fortunately, GM Holdings handles the rental application process for landlords who use our services. Contact us today to learn more!