Most tenants want to find a safe and secure rental home to treat as their own and will happily pay the monthly rate to do so. However, there’s always that small set of people who aim to mistreat the property or purposely refuse to pay rent. Today, we’ll review some characteristics of prospective “nightmare tenants” and how to avoid them during the screening process. Read along to learn our tips for choosing high-quality tenants!
Contents of This Article:
- What Is a Nightmare Tenant?
- Signs of a Potential Nightmare Tenant
- How to Avoid the Nightmare Tenant
- Screening Tips for Landlords and Property Managers
- Find Qualified Tenants With BMG
What Is a Nightmare Tenant?
Most people don’t set out to be a bad tenant. Sometimes, things pop up where someone may miss the rent due date or unknowingly break a minor lease rule. However, there are a select few people who turn out to be nightmare tenants. These are the type of people who consistently pay rent late (or not at all), purposely damage the property, constantly argue or complain, or deliberately break lease terms.
It’s important for landlords and Washington DC property management to know how to handle these types of tenants. Luckily, there are ways to detect and avoid a potential nightmare tenant. However, beware that they’re not always foolproof. Nonetheless, let’s go over some signs of a potential nightmare tenant.
Signs of a Potential Nightmare Tenant
Sometimes, a nightmare tenant can fool you throughout the screening process and end up mistreating your property or missing rent payments later on. However, there are several red flags to pay attention to during the screening process that could save you time and money later on. Here are some of the most common signs to look for in a nightmare tenant.
- Bad Credit Score
- Unreported Income
- Moving Too Quickly
- Not Providing Information
- Doesn’t Show Up or Pay On Time
Bad Credit Score
You can learn a lot about a person by looking at their credit report. For instance, you can see if they have any outstanding debts, whether or not they pay their bills on time, and generally how well they manage their money. This can be crucial in deciding whether or not you’re going to rent to someone, although it may not make or break your decision. However, you’ll typically want to find someone with a solid credit score and a good payment history.
Unreported Income
It can be beneficial to ask for a prospective tenant’s bank statements, showing what goes in and what comes out of their bank account. That said, if you notice a lot of unreported income, it can be a major red flag for a few reasons. For one, it may indicate that they’re avoiding the IRS for some reason, and it can also indicate infrequent income. Unfortunately, this type of tenant may not have enough money for rent each month, which is someone you’ll want to avoid renting to.
Moving Too Quickly
While it’s great for a tenant to be eager to move into your property, there may be underlying reasons for them looking to move in ASAP. Sometimes, tenants procrastinate finding new housing after their lease is up, causing them to move quickly. However, it could mean something else, like they’re being evicted from another property. If you are in this situation, use your best judgment and inquire more about their reason for moving.
Not Providing Information
It’s important that your applicant fills out all the necessary parts of your rental application truthfully and to the best of their ability. However, some tenants will either skip past or put false information down for their rental references. They may often have an excuse as to why they don’t want you to contact their previous landlord like they’re not on good terms or don’t want to tell their landlord that they’re moving.
Other times, applicants may lie and put their landlord’s name but someone else’s phone number who will pretend to be the owner. This is a red flag that shouldn’t be ignored or looked past.
Doesn’t Show Up or Pay On Time
Many landlords want to meet with prospective tenants before signing a legally binding contract. So, if you set up an appointment to meet with a tenant and they arrive very late or don’t show up at all, this can be an indication of their character. Generally, people who don’t prioritize important meetings may not prioritize paying rent on time, either.
Additionally, if they say that they will pay their deposit or first month’s rent on a certain day and fail to do so, take it as a sign that they may be frequently late with their rent payments.
How to Avoid the Nightmare Tenant
No landlord or property manager wants to deal with a nightmare tenant. After all, a tenant who consistently misses rent payments, damages your property, or purposely ignores important lease terms can cost you time and money in the long run. As such, here are some ways you can try to avoid working with a nightmare tenant.
- Thorough Tenant Screening- Before signing a lease with someone, checking their background is crucial to ensure they’re responsible and reliable. For instance, look at their rental history, credit, and employment status.
- Check References- To learn more about the tenant, talk to their previous landlords, bosses, or others who know them well. This can tell you more about their behavior and if they were good tenants in the past.
- Set Clear Expectations- Tenants must know your rules and expectations. For instance, set terms for paying rent on time and taking care of the property.
- Draft a Comprehensive Lease Agreement- Write a detailed lease agreement that outlines all the important points, like how much rent is, when it’s due, and any rules they must follow. The more detailed, the less chance for misunderstandings later on.
- Communicate Effectively- Talk to your tenants clearly and listen to their concerns, too. Good communication helps solve problems before they turn into larger issues.
Screening Tips for Landlords and Property Managers
One of the best ways to avoid dealing with a nightmare tenant is to develop a thorough tenant screening process. Getting as much information about a prospective tenant before signing a lease agreement with them is important. That said, here are some screening tips for landlords and property managers.
- Review the Tenant’s Application– Review your prospective tenant’s rental application. Pay close attention to missing, incomplete, or inaccurate information.
- Verify the Tenant’s Identity– Next, confirm their identity using government-issued identification, like their driver’s license or passport.
- Look at Their Credit History– Obtain the applicant’s consent to run a credit check to assess their financial responsibility and history of paying debts.
- Check Their Rental History– Don’t forget to contact previous landlords to verify the applicant’s rental history. Ask about their payment history, whether they had any lease violations, and what condition they left the property in.
- Verify Their Employment and Income– To ensure the tenant has a stable source of income to cover rent, you’ll want to verify their employment status and income.
- Conduct a Background Check– Conduct a criminal background check to identify any history of criminal activity. This is crucial for the safety of your property and other tenants.
- Contact References– Reach out to personal and professional references provided by the applicant. This can give more insights into their character and reliability.
- Interview Them Face-to-Face– While several parts of the screening process can be done remotely, meeting prospective tenants in person is still important. This can help you assess their character and learn more about them.
Find Qualified Tenants With BMG
The last thing you want as a landlord or property manager is to end up with a nightmare tenant. At the end of the day, a bad tenant can cost you more time and money than you’re willing to spend. Luckily, there are ways to spot a troublesome tenant from the start with a good screening process.
Need More Advice? contact us today!
Want to ensure you choose the best tenants for your rental properties? Hiring a comprehensive rental property management team can help. Our team of experienced property managers here at Bay Property Management Group helps to ensure only qualified tenants get approved for your properties. So, if you’re looking for help managing and maintaining your rentals throughout Baltimore, Philadelphia, Northern Virginia, or Washington, DC, contact BMG today.
