Red Flags for High Risk Tenants

by | Jul 2, 2012 | Tenant Screening

Problem tenants, including those who won’t pay the rent, those who will cause damage, and the worst tenants of all — the ones who use the rental property for illegal businesses like drug manufacturing, come from all walks of life and circumstances.

That can make it difficult to spot the bad ones before they cause significant income loss.

Fortunately, there are some characteristics common to bad tenants which can be spotted during tenant screening.

These common red flags include:

No verifiable place of employment or source of income.

Applicants who are employed should be able to provide the name of an employer, which should have a business license, be listed in a telephone directory, or belong to trade associations.  Applicants on assistance or with other sources of income should be able to provide confirmation letters or other documentary proof of their income.

No bank account. 
No credit history, or a bad credit history
Wants to always pay in cash — which could signal illegal income.

References who are impossible to reach, or turn out to be phony.

Dodges simple questions about their past — where they are from, previous residences, whereabouts of family members.

Conversely, good tenants — those with a good rental and credit history, will have no problem with:

Providing proof of income.

Renting a property subject to routine site inspections.

Providing credible references that include current and previous landlords.

Offering personal references and emergency contacts, such as a parent’s phone number.

Should red flags jump out during tenant screening, it is best to step back and perform more due diligence  in order to avoid renting to a  High Risk Tenant.

This post is provided by Tenant Verification Service, Inc., helping landlords reduce the risks of renting with fraud prevention tools that include Tenant Screening, Tenant Background Checks, (U.S. and Canada), as well as Criminal Background Checks, and Eviction Reports (U.S. only).

Click Here to Receive Landlord Credit Reports.

Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.


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