HOW TO FIND A QUALITY TENANT AND WHAT TO LOOK OUT FOR
25 "Probably Impossible" Tenant ALERTS
By:Tyler Philip, Broker BRE #01900216
As a Broker and working in Property Management for close to ten years, I have come across a myriad of tenants. After showing 100's of homes and processing over a 1,000 different applications I have seen just about everything. Through my experiences I have found there are quite a few telltale signs that a landlord should look out for. When a landlord lists his or her home for lease they are bound to get multiple parties interested in leasing their home and some will even offer to pay you more than what your asking for to secure the home and even "Move in tomorrow!" While this may not sound like such a bad thing at first , it is important to understand the reasoning behind such a lucrative and generous offer on your home. In some very few cases, clients have just fallen in love with a home and "Have to have it ! " But like the old saying goes " If it's too good to be true, then it probably is" While a tenant may be able to offer money up front for your home they may be hoping you over-look what they are hiding from their past. Depending on what it is they are trying to hide this could cost a landlord $$$ in the long-run. This may be just one example, but there are many more that a landlord can avoid just by knowing what to look out for. Here are several tip offs any landlord can use the next time they are looking to procure a quality tenant for their home !
1)Cash on the spot( Do your homework! Verify employment, look at bank stubs/ pay stubs. The more you know the better )
2)Screaming or barking in the background while on the phone
3)Nit-picking from the start
4)CURSING during the showing
5)Asking to trade repairs for a reduction in rent
6)Insulting the home
7)If you hear the phrase " I just need a fresh start or a second chance" Hit the hills running
8) If they show up late for the appointment without a reason or an apology.( Shows that being late is the norm which means your rent checks are likely to be late as well)
9)If they say their credit score is due to fraud. (may not always be the case however it is something that should strike a nerve and require you to really do your homework and review their credit history.
10)If they say," I get a monthly check and its guaranteed" (Usually guaranteed by a relative who will be paying their rent as they do not have a stable job )
11)Make sure to ask why they are moving. If they say because they can't stand their landlord be weary.
12)IF THEY WONT STOP CALLING. They are desperate and will be the same way when minor issues need to be addressed.
Finding a tenant is easy,
finding a QUALITY tenant takes patience,
diligence and experience !
13)When a client calls on behalf of a "friend or relative"
14)If the tenants are arguing with one another during the showing.
15)If a prospective tenant calls you unprofessional because you refuse to answer time-consuming, senseless questions rather than getting you the information you need.
16)If they scribble on the application( hiding the address of the previous rental with "bad handwriting")
17)If they don't have any credit because they pay everything in cash
18)If they get upset when you ask for verification documents arguing that you have "no-right" to view their income/residence history.
19)If they tell you what a good person they are and that you can "trust them" after a first introduction.
20) If they have a parent or relative willing to pay their rent.
21)If they require a multi-year lease for the first term( I always like to sign a 1-year term for all of my clients as a "trial-period"if they fulfill all the requirements of the lease without any late payments, HOA violations or disturbances we will offer the client to sign for another term. )
22)If they appear/sound desperate in general.
23)If they're vague about where they have lived in the past( Obvious sign that one of their leases ended early/ were evicted/ left on bad terms
24)If they have a FICO score under 650, be sure to review their full credit report very closely and identify what caused the credit issues and if they have been making payments consistently for the last 12 months.
25) If they do not have a savings account with emergency funds. Jobs change, people get fired, couples get divorced. It is unfortunate when these events occur however it is your job to protect yourself. If and when something like this occurs it is smart to pick a tenant that has prepared for the future !
Being a landlord can be a difficult job but knowledge is power. When searching for a new tenant it is important to know what to look for and most importantly what to avoid. Having a good relationship with your tenant is very important and the easiest way to do this is treat them with the same respect that you expect to be treated with. Be honest, fair and upfront with your tenant and you are sure to have a mutually beneficial relationship! For more Property management tips feel free to check out our website at www.PreciseProp.com . Our firm has been in business for 20+ years and we are always happy to answer questions whether it be regarding management, investing , sales or leasing. Happy hunting !