One of the crucial jobs of a leasing agent is acquiring good tenants who obey all the rules, pay the rent on time, and do not cause any trouble. I know filling a vacancy is a top priority, but it does not mean you should make hasty decisions when choosing tenants. After all, if you approve shady applicants, you might find yourself with an unoccupied rental sooner than expected.
A thorough screening process requires you to do background checks and verify the information. Aside from looking for sterling things in their history, keep your eyes open for red flags. Don’t overlook these signs because they may save your landlord from problems. But what are those red flags?
After you post your property listings in Padleads, you can syndicate them to other websites. Since it will significantly help you reach thousands of people, applicants will start pouring in. By that time, you should watch out for the following red flags:
Has a record of eviction
A tenant applicant with an eviction history speaks volumes about how they are as renters. It is probably the most crucial red flag you can find because it involves landlords and how they dealt with their past leases.
Most tenants will provide information about their previous landlords to use as reference. If they do, you can get in touch with those people because they will tell you their experiences with the tenant. You can ask why they choose to evict them. Were they constantly missing payments? Did they cause irreparable damage to the rental? You can gain a lot of information from old landlords.
Less than ideal credit history
A landlord’s business success relies on their tenant’s ability to pay the rent. The most sensible thing to do is a credit check. However, you have to remember that a responsible leasing agent will acquire consent for it. If the tenant hesitates to allow you, that should be your first red flag. You cannot, and should not, forego a credit check. Go over the tenant’s credit score and report.
Most credit scores will range from 300 to 800. Steer clear of applicants with scores below 600. Responsible tenant candidates who manage their finances well would score between 700 to 800. The report will have more data for you, such as basic information, public records, inquiries, and credit history. A tenant with bad credit is a disaster waiting to happen.
Jumped from one employment to another
Digging through a tenant’s employment history is one of the essential things to do. You would want someone with a stable income to guarantee on-time and consistent payments. You would also prefer a tenant who can pay for price increases and additional fees.
If you see that the applicant has not stayed in a job for more than a year, it should become a concern. A scattered employment history may mean the tenant is unpredictable or unreliable. It will also indicate the possibility of them relocating for work reasons.
Has a criminal history
Leasing agents can do a criminal background check as long as the tenant candidate consents. You would not want to recommend someone with a history of violence, drug usage, or sexual assault charges.
However, a criminal history may not become the reason to reject a tenant. You can verify with the law about discriminating against people with this type of history. We would not want you to undergo an investigation or face a lawsuit because of discrimination.
Provides false information
A tenant candidate who will lie on their application will most likely lie again. Keep in mind that landlords need to trust their renters. They trust them to take care of their investments and follow the lease agreement. But how can they depend on someone who gives out false information?
Whether they put fake employment details or fake references, you need to unburden yourself from them. There are plenty more tenants out there who are reliable and honest.
You should never, ever ignore red flags-even, the small ones. Rude behavior? It may cause fights among neighbors and the landlord. Hesitation to follow the rules? It may result in property damages or lawsuits. As a leasing agent, you have to make sure to choose the right tenant. It’s not an easy feat, but someone has to do it.