Potential problem tenants can cause serious issues for your rental property business. When you take the steps to find good tenants, it is far more likely that evictions and other serious issues won’t arise. Here are some of the warnings and signs to watch out for when screening tenants, so that you can prevent problem tenants from becoming a problem!
Missing or Bad References
It isn’t difficult for a good tenant to come up with good, solid references. If they are missing references, are related to every reference they provide, or have no professional relationships listed with their references, you should be wary. A reference from their mother is not going to hold as much weight as a reference from a previous landlord. Keep in mind, however, that a landlord may provide a decent reference simply to get a problem tenant to move out of their own property.
Reluctance to Agree to Background Checks
If someone seems reluctant to allow you to perform your standard background checks, it is extremely likely that they have something to hide. This reluctance is a huge red flag that you’ll find something bad in their history.
Insufficient Income
Many people vastly overestimate what they can afford. Most experts agree that rent should be about 1/3 of the tenant’s monthly income. If they don’t make enough money to meet this standard, it is likely that they will be unable to pay rent consistently.
Poor Credit Score
The credit score of an individual reflects their habits. If they have a low credit score, generally anything under 620, you should be very wary. This may indicate irresponsibility, problems with budgeting, insufficient income, or many other things. No matter what it indicates, it is likely that these habits will continue when it comes to your rent payment.
Cause you to Feel Uneasy
Always trust your instincts when it comes to potential tenants. Even if they look good on paper, they still may not be the right tenant for your property. Your instincts are likely to pick up on something that your conscious brain doesn’t. If you feel hesitant about renting to a specific person, there is probably a reason that you feel that way. At Keyrenter, we are well-versed in the importance of finding good quality tenants for your rental property. To weed out potentially problematic tenants, we use a 13-point tenant screening process. To obtain more information about this process and how it can prevent problematic tenants, contact us at the Keyrenter in Merrimack today!