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A landlord has to figure out potentially bad renters so that they are not left with a home in ruins. That's why a landlord has to be smart, and be prepared. There are obvious and not so obvious signs that a potential renter can be a nightmare, here are the top ten signs of a potential bad renter:
1. The potential tenant has bad credit history. A renter can get a credit history online for less than ten dollars, and there are hundreds of on-line sources, to find out if a potential renter has the inability to pay bills.
2 The possible tenant has several job changes in several years. When a renter has just lost a job, or has had several job changes in two years time, that may mean he can't keep a job, and can't pay the rent.
3. The rental application shows prior bad history. The application could show several danger signs such as poor work history, prior evictions, and previous bankruptcy filings. Have a potential renter fill one out to protect your business.
4. The rental application shows they make enough money, but the adjusted gross income on possible tenants tax return says otherwise. Income after taxes is how much a person lives on, not necessarily what is said on the application.
5. While living in small town or a college town ask neighbors, friends, business owners if they know the potential tenant and what they are like. Chances are the tenant could have rented from a friend who has inside information.
6. Confirmation of employment comes up wrong. By calling the possible tenants' employer, a renter can find out if they work there, and if they are good or bad employee.
7. Possible renter doesn't make eye contact. A self-confident, business minded person will look another person in the eye. When a person looks away, or down at the ground while answering your probing questions, chances are he's lying.
8. While being self-employed is not a bad thing, moving a business can be a bad sign. Moving is hard enough, but moving your home, where you work is even harder. Could be, he's running away from someone, or something.
9. If the possible tenant has a bad attitude, poor body language, shows up late for house showing, these could be signs of poor character. If there's a good reason for lateness, you be the judge.
10. Appearance means everything, and that goes for renters too. When a possible tenant comes to rental interview looking unkempt, filthy, unbathed there's a strong possibility that's how the apartment will look once he moves in.
Trust your instincts, if the person seems like a bad risk, move on to the next applicant. Look the applicant in the eye, shake hands, ask a lot of questions, and call the previous employer and the references. Basically, it comes down to one thing, do your homework.
SOURCES: www.rentalproperties.com, www.biggerpockets.com
Learn more about this author, Kate Johns.
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