You will quickly find that when it comes down to it, reviewing applications and interviewing prospective tenants is a lot like hiring someone for a job. You’ll have lots of candidates, and not all of them will turn out to be the right ones for your property. The secret to it is in being able to separate the good from the bad and being attentive to the red flags they might be waving at you.
But what are some of the red flags you can spot in potential tenants? Keep reading to find out!
Problems With The Previous Landlord
A huge tenant red flag is problems with their previous landlords. When you contact the landlord they previously had, ask if the renters were on time with their payments, if they were disruptive, hard to communicate with, or noncooperative, etc.
Doing this before the showing means you can ask about any issues and, after get the tenants’ side as well and make a fair decision. Other questions you can consider asking at the showing to screen for these potential red flags are their expectations of a landlord, and if they’ve had issues with landlords in the past, and don’t forget to ask about their previous rental experiences. According to this Las Vegas property management company, these simple questions for both parties can benefit you in the long run by staying informed from the early stages to avoid issues with the tenants.
Dishonesty
You can find out a lot from tenant background checks, but here’s the most black-and-white lesson you will learn in the years you will experience being a landlord. Candidates who lie to you are not worth your time at the end of the day.
If your research discovers that a tenant lied on their application, whether by providing false employment history, fake references, or inaccurate income estimates, it’s best to cut them loose. A tenant who will lie to you on an application will surely lie to you further on down the road, and the last thing you need is a person you can’t trust living on your property.
Your home is one of your most valuable assets, and if you plan on renting it out to someone you don’t know, you need to cover your bases to ensure that the tenant in question is friendly, responsible, and honest. These are the basic requirements you should stick by always to ensure a profitable stress-free business.
Bad Credit Score
A landlord’s first obligation is in finding a tenant who will be able to pay the rent rates on time every month without any prodding. Your best chance of finding such a tenant is to run a credit check on all of your applicants.
First, remember that your potential renter has to consent to a credit check for you to legally run one on them. Someone who is unwilling to consent to a credit check, though, is showing you another red flag you should be cautious of. If they don’t want you to see their credit history, chances are they have something to hide. Make the credit check a compulsory part of your tenant screening process, and drop anyone who doesn’t consent to it.
Chaotic Employment History
There are several reasons as to why landlords look into their tenants’ employment history. For one thing, a landlord wants to make sure that their tenant has steady employment with a salary large enough to cover rent and also living expenses. Another reason would be that landlords usually view scattered employment history as a pretty big red flag. This is because a tenant who can’t seem to hold down a steady job is not only unreliable as far as regular payments are concerned but also is a relocation risk.
It is in your best interest to find a tenant who is going to stick around for a while, and one of the best ways to do that is by passing on applicants with scattered employment histories that you can’t rely on.
Dissatisfaction With The Property
Not everyone will necessarily love your property at the showing, and that’s totally fine. Nevertheless, pay attention to the candidates who make backhanded comments about it. You can ask questions about what they are exactly seeking, this way you can get an idea of why they are not big fans of what your property has to offer. Derogatory comments could indicate a lack of respect for the property, which can result in costly maintenance issues.
Multiple Address Changes
If a tenant has moved many times in the span of a year, or way too frequently in a short amount of time, this might point out a deeper issue you shouldn’t look over. It may be because the tenant had issues with the previous landlord, or even financial insufficiency, and lack of stability.
This is a problem worth investigating, as the last thing you want is a tenant who will break the lease agreement early and leave you with a vacant property which can harm your business.
Conclusion
Keeping your rental units occupied is a priority, however, not all tenants are good, so you want to choose wisely, as some can be problematic. It’s best to avoid these tenants altogether. While bad tenants may not carry a sign and physically wave a red flag in your face, you can screen for red flags when you show the property and keep an eye wide open at the same time.
A property manager can aid you in this process since they are skilled and knowledgeable professionals who know what to look for when it comes to red flags. You can always leverage their expertise to ensure you have a profitable, stress-free property rental experience.
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