It can be tempting to get excited and quickly agree to someone interested in renting your property. But you need to slow down and do the proper screening to ensure that this potential tenant is someone you want renting from you.
There are the obvious signs of bankruptcy and evictions, but there are other more subtle red flags that you should look for. If you see any of these warning signs in your applicants, then give them a second look before you decide to rent to them.
They Ask You to Skip the Screening Process
One of the biggest red flags is a potential tenant who doesn’t want to go through the screening process at all. If the applicant wants you to skip the screening process, there’s probably a reason. You’ll find that these tenants are also overly eager to rush the process and move in right away.
While it’s tempting to agree and get them moved in, don’t do it. Stick to your routine and insist that every tenant goes through your screening process of a credit report, criminal history, and eviction check.
Once you run all of the checks, you can make an informed decision about whether or not you want that person as a tenant.
Residence Hopping
It’s a lot of work to go through the screening process and get someone new moved in. So you don’t want to do it too often. Give potential tenants that move often a closer look. Why do they move so frequently?
If it’s because of work, this may not be a deal-breaker. It does mean you need to be prepared for them to break their lease with you. Make sure your lease includes a penalty fee for breaking the lease early and a 30-day notice requirement.
Potential tenants that blame their old landlords should make you think twice about renting to them. There’s a common denominator to all of those problems they’re telling you about. You may not want to be the next landlord they have a problem with.
They Want to Pay Move-in Costs in Installments
You probably expect your tenants to pay a security deposit and rent for the first month before they move in. You may even expect them to pay their last month of rent too.
A tenant that cannot afford your move-in costs may not be able to afford to pay your rent. Instead of trying to negotiate with this potential tenant, move on to the next applicant. Find someone who can afford to pay the costs upfront.
Payment History
Beware of anyone who wants to give you a copy of their credit report. This is their attempt at skipping the formal screening process. By not running your own report, you can’t be sure that the information you have is up to date or even correct.
Let all tenants know that you intend to run your own check by requesting a copy of their report directly from a consumer reporting agency. This is the only way to be confident that you have all of the latest information.
Large Gaps in Employment
Maybe the applicant took a year to travel or to stay home and raise the children. Whatever the reason, you need to ask potential tenants about large gaps in their application where they weren’t employed.
If their explanations are valid, then continue moving forward. If their reasoning doesn’t sound quite right, then think twice about moving them in.
Let the Professionals Catch the Red Flags
It takes skill and attention to detail to catch all of the red flags that make someone a potentially lousy renter. Working with a property management service can take the pressure off of you. They see countless applications a month and know what type of person to look for.
Contact our office today to have your tenant screening process taken care of for you.
