Proper and meticulous tenant screening is a must. Because whether owners know it or not, tenants play a major role in the success of real estate investment. If you are the owner, you probably do not want the money you spent on the property go down the drain and be lost.
There is no perfect tenant. But there are those that you and your property are better of not having as tenants.
What are some kinds of tenant to avoid?
Untruthful Tenant. By that, it means those tenants who have made false claims about their job or salary. These tenants might place in figures on their application that are just made up or exaggerated.
Most property management companies check and verify all information given during the application process. Check with employers about the salary of the tenant, how long he or she has worked for the company and other pertinent employment history. Spend time to check the information out before going over the next step in renting the property.
Late Paying Tenant. There will always be tenants that tend to pay late rental fees. This can become a habit especially if there is no action being done on the part of the landlord. One time late payment can become two or ten and so forth.
Tenant referencing can avoid this problem. Getting in touch with previous landlord is how you can check the payment history of tenants. If you see a pattern in late payments, then you should think twice about approving the rent application.
Deceitful Tenant. No one wants to have a fraudulent tenant or person for that matter. Today, people have means to falsify records and make them appear true and legal. In any kind of business, this is the person to stay away from.
Credit card and background checking can help verify if the tenant has supplied you with the right information. This is one of the roles of property managers. Records are confirmed by working with the right agency. Getting in touch with the right authorities is the best way to distinguish if the tenant would be a good fit for the property.
Destructive Tenant. Once tenants rent the property, they now have the right to do whatever they want with it. But on a certain level. Renters do not have the right to ruin or destroy the property. Even if these renters have been renting the property for a long time, the rules set should still be followed.
Owners normally dictate certain rules for the property. This is aside from the rules to follow depending on the location of the real estate. Most owners want their property to be well maintained and taken cared of by those that are occupying them. This should be stated first and foremost in the agreement. Penalties should also be set to avoid property destruction.
Four kinds of tenants to avoid. Watch out for these telltale signs so you can have a steady stream of income from the investment that you made.