Red Flags to look out for when screening a tenant
You’ve heard of dating red flags but do you know about red flags in tenant screening?
Landlords and property managers understand the importance of tenant screening to secure the most qualified applicant for a rental property. Failing to properly screen a rental applicant can result in significant loss of income due to late or unpaid rent, property damages, or an ugly and expensive eviction.
Red flags that managers, investors, and landlords need to pay attention to during the application process could be:
Bad credit - Your applicants’ credit history and debt obligation can give you an idea of their ability to pay rent on time.
Eviction History - If the tenant has a history of evictions, you should not let them live in your rental. Evictions are time-consuming and put you at risk of losing rental income.
Criminal Record - Landlords can legally deny an applican based on their criminal record if their past demonstrates a lack of respect for property or safety of current residents.
Complaints about a rental application - Most qualified tenants understand that part of the renting process involves an application. If an applicant questions the landlord’s need to verify information, this is a huge red flag.
Blanks or mistakes on the application - Rental applications should be treated like job applications. Mistakes could be an attempt to mislead a landlord and also negligent. Blank spaces could indicate that the applicant is hiding something.
Hesitation or Resistance to provide Social Security Numbers - A qualified tenant should be pleased with thorough screening criteria as it demonstrates your value in finding the best renters. Again, there might be something they’re trying to hide.
Verifiable Landlord Reference - The best way to receive an honest landlord reference is to ask questions about their previous tenant. Late payments, disrespecting lease terms, and forgoing the security deposit are big red flags.
Moving too Often - Long-term tenants are a landlord’s dream, so paying attention to moving history can signal a short-term tenancy. Having more than 3 previous addresses in the past 5 years can be a red flag.
If you have more questions about tenant red flags, visit our website, www.ccrentalpro.com.
