Studies show only 5-10% of tenants are bad. But this doesn't mean you can skimp on tenant screening.
Performing a tenant background check on every renter is an effective way to keep bad tenants off your property. But what exactly signals that a prospective renter will likely turn out to be a tenant from hell?
Here are a couple of red flags that should make your alarm go off!
1. Frequent Moves
Living in a rental is the flexibility affords you great flexibility. You can relocate as often as you'd like.
However, from a landlord's perspective, a renter who's always on the move is bad for business. If you accept their application, they may move out before their lease expires, leaving you with the costly and time-consuming task of finding a new tenant.
But what kind of moving frequency should get you worried?
The average person is expected to move about 11 times in their lifetime, so if you're dealing with renters who have moved ten times in the past five decades, you obviously shouldn't be concerned. But if their rental history shows they have moved five times in the past two years, that's a big red flag.
2. Employment/Income Gaps
You want a tenant who can afford to pay the rent every month. Evaluating their employment status and credit history will give you an insight into their financial capacity and behavior.
If you're seeing employment gaps, that's cause for concern. Being in and out of jobs is perfectly normal, but if the time between those jobs stretches over several months, you could be dealing with somebody who either loves quitting their jobs or gets fired often.
Being out of a job doesn't necessarily mean a tenant will default on rent. However, if employment is their primary source of income, and considering that many workers are living paycheck to paycheck, being out of a job could render them unable to keep up with rent.
3. Criminal Background
In Florida, criminal records are public - unless sealed. Landlords and property managers can access a renter's criminal record and use it to determine their suitability as a tenant.
As much as it's allowed, rejecting a rental application solely based on someone's criminal background borders on discrimination, but it's prudent to consider the nature of the crimes committed.
Traffic convictions, for instance, have little bearing on the offender's ability to be a good tenant. However, more serious offenses like sexual assault and drug trafficking are a red flag. You don't want people who could potentially commit a crime and go to jail living in your rental properties.
Be on the Lookout for These Tenant Background Check Red Flags
A tenant background check enables you to catch bad tenants early in the rental application, protecting yourself from a lot of headaches down the road. As a DIY landlord, though, you might not have the time to do a comprehensive background check every time you need a new tenant.
If you'd like professional help vetting tenants in Punta Gorda, FL, PMI Heartland Reality is here for you. Our services include tenant screening, property marketing, rent collection, maintenance, and evictions.
Contact us to learn how we've helped landlords like you over the years.
