Managing relationships with residents is one of the toughest but most important parts of successful property management. Owners need to be careful about who they rent to legally. Finding the right resident lowers risks and makes the owner's job easier.

So, what does it mean to be careful legally?

It means not just taking a potential resident's word for things like identity, character, income, or history. You absolutely must develop objective rental criteria (that apply to everyone) and screen potential residents based on that criteria – No Matter Who They Are!

Property Owner Mistake #1 is trusting the rental applicant too much!

It's tempting to rely on your feelings about someone when they seem nice, clean, and friendly, especially if they come recommended. But trusting instinct is not good enough, you must make this business decision based on facts!

Why do some property owners mistakenly trust, rather than screen, applicants?

No Time. No Tools. No Training.

• No Time: When you advertise your vacancy online (e.g. Zillow), you may be flooded with applications. It takes time to read and respond to the applicants and schedule showings. By the time you get to screening the applicants, it can be hard to invest additional time into running the tenant’s data through a professional screening system; contacting character references and employers; and comparing the results to your rental criteria. But it is necessary!

• No Tools: Without experience, owners might not know how to check important things like debts, job stability, or past renting.

• No Training: If you are not an expert on Fair Housing and Landlord Tenant Law, it is difficult to establish fair, legal, rental criteria. But, failing to do so is a potential liability. Owners must evaluate residents based on legal standards, not personal preference. And, once you gather the screening results, it can be overwhelming to identify all of the red flags (that a professional property manager will spot right away)!

At Ironclad Property Management, we take tenant screening seriously. Sometimes new clients question why we turn down seemingly good applicants. But they stick with us because they trust we'll find the best residents for their properties, even if it takes a bit longer.