How to Avoid Problem Tenants

Selecting the Right Tenant

The single most important element of property management is the ability to select the right tenant to rent or lease a property. A thorough process helps avoid ending up with a bad tenant.

Depending on whether the property owner outsources that task of selecting tenants to a property management company or does it themselves, having an in-depth process in place to completely vet the potential tenant can save a great deal of trouble that can occur after a lease agreement is signed. A detailed rental application is essential for gathering the necessary information to select better tenants. This process is designed to help attract better tenants and avoid bad tenants.

Credit and Criminal Background Check

The first step in a comprehensive tenant check is to perform a credit check and criminal background check. Many landlords and nearly all property management companies charge an application fee, often referred to as a screening fee, to cover the costs of this type of check. A credit and criminal history check can give an indication of the type of person who is applying to rent the property. A credit report provides detailed information about an applicant's credit history, credit score, and employment history, which are essential for assessing financial reliability. Individuals who have recent credit issues might indicate a potential problem committing to financial obligations. If credit issues are several years old and no new issues are present, then the landlord might assume that the individual has made a strong effort to correct their previous issues. Reviewing the credit report and credit history helps provide a complete picture of the applicant's financial reliability.

Criminal background activity is a different and more serious matter and careful considerations must be made as to the severity of the crime and how long ago it occurred. Obviously, someone recently imprisoned is more of a risk than an individual who went to jail several years ago and has been a lawful citizen ever since. Income verification is also an important part of the screening process, as it helps confirm the applicant’s ability to meet rental obligations.

The idea is to find the best possible tenant to rent the property, so caution in this area can pay off in the long run and help avoid having to file a notice to quit in the future. Using these tools helps landlords make more informed decisions by providing a complete picture of the applicant. It is better to be patient and find the right tenant than rush into signing a lease agreement with someone who has a questionable background.

Legitimate Proof of Income

The next most important consideration is legitimate proof of income that states the individual can afford to pay the rent every month. A potential tenant should be able to provide some form of written proof of income, whether it is a letter from their employer or a copy of their tax return.

Landlords should use caution in this area as well since it is not difficult in today's computer age to forge documents and create an advantageous proof of income. A follow-up phone call to an applicant’s place of work is always a good idea to confirm the information presented in writing.

Eviction History

Eviction history is a vital component of the tenant screening process that property managers and property owners should never overlook. By examining eviction reports, landlords gain valuable insight into a prospective tenant’s rental history, including any past issues with non-payment, property damage, or lease violations. A pattern of prior evictions can be a strong warning sign of potential problems, such as unpaid rent or neglect of property, which could lead to costly repairs or legal action down the line.

Incorporating eviction history into your screening process, alongside credit and background checks, allows landlords to make more informed decisions and select tenants who are less likely to cause trouble. Reviewing this information helps minimize the risk of renting to individuals with a history of non-payment or property damage, ultimately protecting your investment and ensuring a more stable rental experience. For most landlords, taking the time to check eviction history is a small step that can prevent major headaches in the future.

Online Tenant Screening

The online tenant screening process has transformed how property managers and landlords evaluate prospective tenants. With just a few clicks, you can access comprehensive tenant screening reports that include credit reports, background checks, and eviction history—all essential tools for making confident leasing decisions. Online tenant screening services streamline the screening process, saving time and reducing the risk of overlooking critical information.

By using reputable online tenant screening services, property owners can efficiently screen tenants and receive detailed screening reports that highlight any red flags, such as prior evictions or criminal records. This digital approach not only speeds up the rental process but also ensures that landlords have all the information needed to protect their property and select reliable tenants. Embracing online tenant screening is a smart move for anyone looking to safeguard their rental property and enjoy a smoother, more secure leasing experience.

Are References Useful?

While character references can be helpful, they must not be used to shift the decision either way since even the most shady of characters can find someone to act as a personal reference. More importantly, getting a reference from previous landlords will be much more valuable in helping to paint a picture of the kind of tenant the individual has been, including whether they were a bad tenant who caused issues for other tenants in the building.

Most landlords will not hesitate to give a detailed accounting of the type of tenant the person was, especially if the experience was negative and the individual left the landlord with unpaid rent or damages. In such cases, landlords may need to use the security deposit to cover damages or, if necessary, pursue claims in small claims court to recover additional costs. Likewise, any positive experiences the landlord had with the tenant will be revealed. It is a good idea to always get any reference information in writing with an address and phone number of the landlord. A follow-up phone call to the landlord is also a good idea just to make certain the information in the letter came from them.

Whether the landlord is renting the property on a month-to-month lease basis or the term of the lease agreement is for a long period of time, it is important to conduct a thorough investigation into the tenant’s background to ensure avoiding renting to a problem tenant. References from previous landlords can reveal how the tenant interacted with other tenants and whether they caused issues in rental units. In the end, a face-to-face meeting with the tenant in their current home can tell a landlord a great deal about the individual and how they keep up the property. Additionally, landlords should conduct inspections of rental units regularly to assess how tenants maintain the property and to identify any potential problems early. This is a good final check to perform just prior to making a decision.

A proper background investigation can be a time consuming and tedious endeavor, but this effort is minimal compared to the problems that might be suffered trying to evict and recoup damages from a problem tenant.

Common Mistakes to Avoid

Even experienced landlords can fall into common traps when it comes to tenant screening and property management. One major mistake is neglecting thorough background checks, including credit reports and eviction history, which can result in renting to tenants who may cause unpaid rent or property damage. Another frequent error is failing to clearly outline the terms of the lease agreement, such as rent payments, quiet hours, and maintenance responsibilities, leading to confusion and disputes.

Landlords should also be wary of ignoring warning signs like late payments or unverifiable income, as these can indicate future problems. Overlooking these red flags or skipping steps in the screening process can increase the risk of dealing with unreliable tenants. By staying vigilant, conducting comprehensive background checks, and clearly communicating lease terms, property owners can avoid these pitfalls and ensure a more successful and stress-free rental experience.