5 ways to spot a potentially bad tenant
Renting your house to a bad tenant can end in disaster. Not only can bad tenants cost you money, but they’re also likely to send your stress levels skyrocketing. Know the warning signs to look out for to avoid the unnecessary hassle of dealing with the wrong people before you sign a rental agreement. List your rental property for free on GotProperty today and get the process off to a great start.
1. Bad credit
A tenant whose credit is a disaster zone is not the right choice for your property. Red flags on their credit report are an indication that they don’t handle money matters well, which means that they are more likely to pay rent late or not at all. Know how to spot the difference between good and bad debt.
You can expect people to have accounts with cell phone companies and retail stores. However, short-term loans that have been taken out with microlenders are a bad sign. Frequent credit applications are another indication that your prospective tenant’s finances are not in order.
2. Lack of references
Before you rent out your property, it’s advisable to ask for references from previous landlords. A written document or phone call can help you to gain insight into whether your prospective tenant is a good choice or not. If the person won’t provide you with a reference, it’s likely that they have something to hide. They may be concealing an eviction or a poor track record of paying rent on time. Written references should be accompanied by the contact details of the landlords who wrote them. Be cautious of people who use family or friends as references.
3. Erratic history
When you’re checking their history, it’s important to keep in mind a few of the signs that they’ll be a bad tenant. If the person has a history of moving often, you’ll need to find out why. Frequent moving may be an indication of unstable employment or eviction due to bad behaviour. A history of late payments is another warning sign. It’s also advisable to check their employment history to ensure that they have maintained a stable income over time.
4. Bad behaviour
Is the person well-groomed and friendly? You’re more likely to form a good relationship with your tenant if they make a good impression on you during your first meeting. Look out for signs of bad behaviour right from the start. Trust your intuition and if the person seems problematic, save yourself the hassle of having to deal with them over the long term.
If your prospective tenant finds numerous faults with your property from the moment that they arrive, they’re likely to be demanding once they move in. Tenants who try to break your rules before they’ve even signed the lease are likely to cause problems later.
5. Negotiating deposit or rental
Take it as a warning sign if the person tries to delay paying the deposit. If they pay the deposit when they’ve already moved in or they want to pay it in installments, it’s an indication of financial instability. Likewise, you should exercise caution if they try to negotiate the rent.
However, if someone tries to pay the deposit before you’ve even run checks on them, it may be a sign that something is amiss. Don’t feel pressured to sign the lease agreement if the tenant tries to pay the deposit before you’re ready to commit to the rental.
Now that you know how to spot a bad tenant, you can start advertising your rental property. Here are tips on how to choose a choose the best tenant for your rental property. What are you waiting for? List your house for free on GotProperty today.
