Top tips for spotting troublesome tenants
Category News
If you're a landlord, then you know that a good tenant is worth his or her weight in gold. At the same time, you may have been exposed to tenants that become a nightmare, no matter how sweet and responsible they seemed at first. Follow these strategies to make sure that looking after your real estate investment doesn't become a nightmare.
First things first - look for obvious red flags
If your would-be tenant has multiple cellphone numbers, attempts to haggle over deposits and fees and has references who don't seem to be checking out, pay attention. These could be signs that he or she either cannot afford to rent your property or has given previous landlords a hard time. Similarly, if you're hearing excuses as to why documentation and references can't be provided timeously, it's time to walk away. An unscrupulous tenant will be looking to impress you, and may pull the wool over your eyes by offering to pay the deposit (or even a bigger deposit than what you have asked for) prior to the necessary checks being done. Don't fall for it.
Be on the lookout for constant changes
If a prospective tenant is regularly changing homes or jobs, it's worth asking why. On the one hand, it's natural for a tenant to move far more frequently than a homeowner would, but if there's an unnatural number of address changes, chances are they don't have the kind of stability in their lives that you want from a tenant.
Issues around the deposit
If you're fielding questions like "Can I pay the deposit off over a couple of months?" or "Can I pay my first month's rent in a few days after I get paid?", these financial instabilities don't just go away. Once a tenant is living on your property, it's not always easy to get them to leave.
Pay attention to questions
It's worth listening carefully when your possible new tenant asks questions about your property - they may reveal more than they realise. For example, if someone asks if three people is really the maximum number permitted to live in your apartment, it's worth wondering where they were hoping to have a fourth person move in. Similarly, if they ask if there's any flexibility in your "no pets" policy, they may also be looking for a home for a furry or feathered friend.
Self-employed individuals
Renting to a self-employed person may not be an issue - especially if they have an established business and can offer good references. However, if someone has just recently started working for themselves, it's worth considering getting a surety signed or a bigger deposit.
Do a thorough background check and investigate references
Before signing a lease with any new tenant, you should take a look at their credit report, employment status and confirmation, recent bank statements as well as references from previous landlords. Never take a reference letter at face value - it's too easy for a prospective tenant to simply fabricate a letter. Always take the time to phone the referees and check them out. Real Estate agencies have the ability to check ownership to ensure the referring landlord is the legitimate landlord.
The easiest way to find a great tenant is to entrust the process to the experts. The Jawitz Properties team has decades of experience in finding good tenants for landlords. For help with renting out your property the stress-free way, contact us today.
Author: Jawitz Properties
