Renting out your property can be a very stressful experience. It’s scary to let someone live in your home that you don’t know anything about. That’s why the application experience is incredibly important. Be sure you watch out for these red flags as you go about the screening process.
- Inaccurate Information on the Rental Application: If a prospective tenant fills out an application with inaccurate or incomplete information, that is a huge red flag. Be sure to thoroughly look through the application to see any discrepancies. They could put a fake employer, the same contact information for all of their references, or give you other information that is not correct.
- Poor Credit History: Credit is an indicator of how someone handles their finances, so it’s important to look in depth at the credit report to see if there is anything that could be a sign of potential future payment problems, such as multiple things in collections, repossessions, bankruptcies, or frequent late payments.
- Unstable Income: It’s important for someone to have a steady source of income to ensure that rent will be paid for. If the person who applied has pay that fluctuates frequently, their hours are unstable, or there’s a high possibility for termination in the near future, then they may not be able to make rental payments.
- Bad Landlord Reference: One of the best ways to know if someone will be a good tenant is to see what their previous history is. Be sure that the landlord is a valid landlord; be wary of friends or relatives who may be listed as a previous landlord. If a landlord gives a poor reference, that is a major red flag and should play a role in your decision to rent to them.
- Inconsistent Communication: During the application process, you may need additional information from the prospective tenant. If they are hesitant to provide the information that you need to complete the application, that can be a red flag. It is important that the prospective tenant is willing to give you information that will help you make a decision about approval.
The most important thing to remember is to do a thorough application process. Get all the information that you need before making a decision on approval. It’s also important to know that you shouldn’t make decisions based on gut feelings. Have a consistent approach to each applicant and ensure you are following fair housing laws. It can be stressful to find good applicants for your property, but you don’t have to do it alone. Reach out to Hero Property Management today for a free consultation with professionals at (801) 845-4390.