Nothing is worse than having to evict a tenant. It can be as much as $7,000 or more and it takes way more time than you likely have. Anything you can do to prevent evictions is worth doing. With that in mind, Snappt has compiled a list of 15 warning signs that indicate someone could be a bad tenant.
1. Currently unemployed
If an applicant cannot list current income sources, you have no assurance that they can cover the cost of rent each month. Unemployment may last for many months, and savings can run out fast. You should not take the applicant’s word over insufficient evidence of current employment.
2. Recently self-employed
There are great income opportunities in self-employment, but a short history of self-employment often means that there many be a stable income and employer references are potentially absent. New businesses require time to generate enough revenue to support monthly expenses. As a result, be cautious about accepting a rental application from a tenant who claims recent self-employment.
3. Always haggling over rent
Bartering excessively over the cost of rent may be a sign that the bad tenant can’t afford the property. If they aren’t prepared with facts as to why the rent should be lower, this may not create a good professional relationship with the person they are renting from.
4. Low or bad credit score
Running credit checks on potential applicants can help you evaluate their financial situation. Think of a credit score as a financial report card, helping you determine past financial responsibility. If a potential renter has unpaid bills or late payments, these issues would be reflected in their credit score.
5. Cash-only payments
A renter who wants to pay cash may sound like a dream tenant, but typically a tenant offers cash because they have bad credit. You may not know the person’s actual financial status for several weeks, and by then, it may be too late to avoid significant payment issues.
6. Complaints about their existing landlord
With every renter is at least one landlord horror story, but if your potential resident complains excessively about past rental experiences, they may be a bad tenant. Consider what they might say about you when they encounter a policy they do not like.
7. Not able to meet face-to-face
Be sure you meet your potential tenant face-to-face at least one time. Renting to responsible tenants is very important, and if they can’t find the time to meet you in person, they may be unlikely to follow through on their lease agreement or monthly payments.
8. Evidence of drug/alcohol use
If a potential tenant arrives for a tour and smells like marijuana or appears intoxicated, this indicates a lack of respect for the landlord and property. You may want to avoid renting to someone whose judgment is impaired and may not be able to pay rent long term.
9. Frequent relocation
Renters sometimes move when they find more affordable housing or better job opportunities, but you may uncover other reasons for frequent moves. If your renter doesn’t have valid reasons for relocating frequently, or if they seem to have the same problem with their roommates or landlords over and over, you may want to avoid entering a rental contract with them and try to determine if they were asked to leave their previous residence.
10. Unstable job history
There are many valid reasons a tenant may change jobs frequently. Regardless, someone who switches jobs often may not have a stable source of income or may not be able to pay their rent between employment changes. If you are looking for stable long-term tenants, be sure they have an employment history of at least 12 months.
11. Unable to prove rental history
First-time renters are not always a concern, but be particularly aware of a potential tenant who has rented before but has no proof of prior tenancy. If they paid rent to a friend or family member, ask for proof that their rent was paid on time. Ask for a guarantor on the lease, thoroughly research their income, and request character references from coworkers or employers.
12. Frustration over the rental verification process
The tenant screening and verification process is extremely important for uncovering potential issues. If your applicant becomes angry over the process, they likely have something to hide and may be trying to intimidate you into skipping these important steps.
13. Withheld or inconsistent personal information
If a potential renter is hesitant to provide personal information, leaving portions of the rental application blank, they may be hiding essential information. You should follow-up by questioning the applicant. If the applicant doesn’t authorize a credit report or background check, you should reject their application. Since an applicant can easily falsify personal information, verify that the information provided matches the tenant screening reports. Any differences should be investigated and information needed from a prospective tenant should not be difficult for a lessor to obtain.
14. Insufficient income
Your tenant must be able to pay rent each month, so be sure to review income documents. Depending on where you live, a tenant’s income needs to be at least three times the cost of their rent. If the applicant does not have enough income to support their monthly rent, or if they refuse to disclose their income, you have a valid reason to deny the application.
15. Past criminal history
Sometimes, the future is best predicted by observing the past. Be sure you are aware of a tenant’s prior behavior, especially their criminal history. If a crime happens in your building, you may be sued for negligence. If you skip a tenant background check, you may be liable.