6 Signs You Should Never Rent To A Prospective Tenant

Photo by Ivan Samkov: https://www.pexels.com/photo/a-house-for-rent-placard-8963081/

 There are all kinds of people renting out property. They may be at the head of a large commercial property firm, negotiating with businesses that aim to keep their lease for decades. They may simply be a family with a spare room who are happy to let out their shared space to help with living costs. One truth applies to them all - no one wants to let in a bad tenant.

However, it’s not always easy to achieve that. After all, even a credit check and reference might not give the fullest picture out there. If you’re not careful, you might find that the process of renting becomes a nightmare, where someone who doesn’t respect your property and doesn’t pay their rent, on time or otherwise, is still living within a place you own.

Depending on the country you live in, the process of removing them may be more difficult too. Even if you have the proof for eviction, they may still have months to move out and find somewhere new before you can legally change the locks. 

This isn’t to scare prospective landlords of course, only that it’s best to do your checks ahead of time. Of course, this will apply differently to commercial and private clients, but you may find some of the following advice applies universally:

Set Your Criteria

One mistake that newcoming landlords make is not setting the exact criteria for who you want living in the space. Sure, that might be wide, but it’s still best to kow. As such, it’s helpful to sit down and figure out exactly what your ideal tenant looks like. Of course, need to decide the minimum income level you’re comfortable with, and considerations like their credit score or history of tenancy. That’s not to say you won’t accept people who receive welfare for example, but you may want to know your rent isn’t going to be 70% of their income, meaning they may slip on it as living costs always bite.

If you have the rules set, it’ll actually make sure you treat every applicant fairly, and it also gives you a solid reason for declining someone if they don’t meet the basic financial means. This is your business, after all, and you’re allowed to set the standards that protect your investment. Just make sure you’re not falling afoul of any market rate laws in your country.

Meet In Person

This could sound too old school, but meeting the potential tenant in person is something you shouldn't skip, especially if they’re living in the same building as you. An application form can tell you a lot as can real estate agents, but a face-to-face chat tells you much more about the person who will be living in your property. You get a chance to see how they communicate and how they treat you and the property during the viewing.

It’s not a test of course, you can just have a normal conversation instead of an intense interview. Ask them about their work, why they’re moving, and how they plan to use the space. If you can, pay attention to how they answer your questions, as it’s helpful if they seem genuine and upfront. It’s fine if you go with your gut feeling of course..

Conduct All Checks

Now, this is where the digging comes in, and it’s arguably the most important step for protecting yourself. A credit check is a good start because it gives you a good idea of their financial history and if they pay their bills on time. Don’t stop there though.

Usually, it’s worthwhile to look for the most comprehensive tenant screening with criminal background and eviction history checks available in your area. It’s an extra measure of due diligence after all, which is helpful for spotting issues that you might not get from a basic credit check. Again, you might not necessarily sweat someone with a criminal background because, after all, people have to live somewhere, and a past conviction doesn’t necessarily make someone a pariah. But if they’ve been violent or evicted in the past, that’s good information to know.

Check Employment Confirmation

The tenant might write down their salary on the application, but it’s helpful to confirm that information directly with their employer. People can sometimes exaggerate their earnings, or they might be on a temporary contract that’s about to end, and you won’t know unless you check.

A quick call to the HR department or their manager to confirm their position and salary is all it takes. Be sure to have this outlined in your application requirements though. Also, you want to avoid relying on a letter they give you, because those can sometimes be faked.

Make Sure Documentation Is Genuine

It’s a bit sad that you have to think this way, but fake documents are out there, so it’s wise to be cautious in genral. This applies to everything they give you: ID, bank statements, and employment letters.

You should always look for any documents that don’t match up or blurry copies. If a tenant is only willing to provide a poor photocopy of a document, it’s worth asking for the original just to make sure everything can be verified. It’s helpful to cross-reference the information you get from one document with another as we just alluded to also, as if the dates or addresses don’t match up, you know you need to ask more questions.

Take Your Time

If someone is trying to rush you through the process, that can sometimes be a warning sign too. Sure, it’s true that most tenants just want to find a place in a competitive market, but in general, a good tenant who is organised and has nothing to hide will understand that you need to take a couple of days to complete your preparations and check everything. 

Don’t feel pressured to sign a lease just because they say they need to move in tomorrow. It’s not fun for tenants of course, but in general, landlords have the power here and you’re not unethical for checking who you’re doing business with.

With this advice, we hope you can more easily find the best prospective tenant for your needs!