Tenant Background Check: Beware of the Five Red Flags That Can Indicate a Bad Tenant

1. November 6, 2017 Tenant Background Check: Beware of the Five Red Flags That Can Indicate a Bad Tenant Renting out a property can be a lucrative business, but only if you have good tenants. Every landlord who has been in the industry long enough has one (or sometimes more) nightmare tenant stories to tell. So as not to risk history repeating itself, you better have a very thorough screening process in place. Conducting a comprehensive tenant background check should help you single out the bad tenants. Keep an eye out for these five red flags. P a g e | 1

2. Unsettled Debts One or two late payments is hardly an indicator that one will be a bad tenant. If you’re feeling generous, you can let that slide but one thing you should never neglect is a problematic debt history. You should think twice about taking in an applicant who has hefty loans, maxed out credit cards and unpaid balances. Look out for serious signs of financial trouble such as bankruptcies, liens, or a history of unpaid rent with a previous landlord. This kind of tenant will most certainly fail to keep up on paying rent. Eviction History Getting evicted from a previous rental property is never a good sign. Eviction is a legal action taken by a landlord to effectively expel a tenant from the property. Basically, this means that the occupant has done something bad enough to warrant such reaction. By far, the most common reason for eviction is non-payment of rent, followed by lease violation, property damage, illegal or drug related activity, and expiration of lease. Whatever the case may be for that particular applicant, you may want to reconsider leasing out your property to them. False Information Here’s a good rule of thumb for landlords: don’t waste time on applicants who lie on their application. If they’re already resorting to lying about even the smallest things, they might be hiding something worse. This is why you need to dig deep into their identity and lifestyle. Confirm their identity through the proper channels and cross-check every bit of information provided. Taking in someone who sees it fit to lie about their identity can put you and your other tenants at risk. Poor Work Ethic You can tell a lot about one person by their performance at work. Unfortunately, some landlords rarely even contact a potential tenant’s employer for reasons other than confirming P a g e | 2

3. income and employment. Talk to a renter’s supervisor to learn more about their behavior. Do they work odd hours? Do they often start trouble in the office? Do they have any bad habits like smoking or drinking? These are all valid questions to help you get a better idea of what kind of tenant they could be. Suspicious Roommates During a lifestyle check, one thing you should ask a possible occupant is if they plan on getting a roommate in the future. Your tenant’s roommates or long-term guests might be looking to avoid a screening because they have a criminal past or a bad rental history. As a landlord, it’s important to require all adult occupants to undergo a tenant background check before you allow them to live on your property. Make sure your lease agreement includes a clause that explains what the rules are for roommates and long-term guests. A meticulous screening process helps protect landlords and their assets. Companies like Houserie Inc. can get you started on your search. About Houserie Inc. Houserie Inc. offers comprehensive tenant screening packages to landlords and property management companies. We use a proprietary system to help clients mitigate risks in looking for ideal tenants. Since we were established in 2013, we have worked with many satisfied clients. Sources: How to Screen Potential Tenants – Questions, Credit & Background Check, MoneyCrashers.com 7 Advanced Tenant Screening Tips (So You’re Not Fooled by Wolves in Sheep’s Clothing), BiggerPockets.com P a g e | 3