Renting out a property is a challenging task and landlords need to be extremely careful when renting out their real estate. The best way to avoid bad tenants is to catch them during the tenant screening process. Landlords must avoid renting out their property to those tenants who have bad credit, eviction history, no deposit, and no rental stability.
Here are some prominent types of tenants you should avoid.
Renting out your property to a tenant who has been evicted recently can prove to be an expensive mistake. Such an evicted tenant may damage your property or prove harmful for your property management business or other tenants. So it would be wise to avoid renting out your property to an evicted tenant or a tenant who has been evicted more than once.
Tenants with bad credit report
A rental applicant with a bad credit history has nothing to lose. Such a tenant would fail to pay your rent on time and regularly. Since his credit is already ruined, the tenant won’t get intimidated with rent collection warnings and credit bureau actions. Make sure you run a tenant credit check as a part of your tenant screening process.
No rental stability
Avoid renting out your property to a tenant who has no rental stability. Such a tenant does not reside in any property for a long span of time and opts to leave your property soon. An ideal tenant will prefer to reside in a rental unit for at least five years and renew the rental lease each year along with an increase in the rent. Also, avoid a rental applicant who moves many times in the same year.
No security deposit
Make sure no tenant moves in your property without a security deposit. Delaying paying security deposit or making excuses for its payment is a clear sign that the tenant will fail to pay your rent on time. Tenants will certainly have issues in paying the rent if they are unable to save for a security deposit. This kind of tenants will move out of your property overnight without paying the rent for the tenant has nothing to lose.
Tenants hurrying to move in the same day
If a tenant is hurrying to move in your property the same day, the reason is most probably the eviction of that tenant by his previous landlord for non-payment of the rent. Take your time to screen the tenant before renting out your property to a tenant who is in a great hurry to move in the same day. Don’t let the tenant pressurize you to sign the rental lease agreement the same day. Do not refrain from asking questions to the prospective tenant. It’s always better to ask and verify everything before signing the lease.
These are five types of tenants to whom you should never rent out your property. Always have a tenant who can pay you rent on time, take good care of your property during his stay, and commits to stay for many years. Screening all prospective tenants and conduction, basic checks are keys to find and have a good tenant. Always insist on credit reports, previous landlord references, tenant eviction history, and employment verification.