7 Ways to Identify "Tenants From Hell" and Avoid Financial Disaster

Having the skill to recognize a problem tenantuneasy you can ask for a copy of the Lease or
before renting to them is perhaps one of thethe rental verification to be sent on Letterhead.
most important a property manager will ever4) The address listed on the application for
develop. Tenants do not all of a sudden becomeprevious address does not match the address
"tenants from hell". There is a pattern of behaviorreported on the credit report. Credit reports will
over their entire adult life that will show up whenshow previous addresses reported by the tenant
conducting a thorough background check. A goodwhen applying for credit. If the tenant's application
property management company should be able tosays they lived at Tranquility Lakes from 99-2009
identify the signs of a potential "dead-beat tenant"but the credit report shows they lived at a
and disqualify their application.different address from 2007-2009, do the
1) The applicant has little or no credit history. Ifresearch on the address listed on their report so
the applicant is young than most likely they justthat you can receive the most accurate rental
have not established any credit of their own yet.history. You should require landlord information for
But there are other instances when this meanstheir two most recent addresses. If those
the applicant is using a false social securityaddresses do not appear on their credit report,
number. Often times it will be the social securityyou should be concerned that the tenant is lying.
of an elder person who does not check theirThis is not always the case, but it is better to be
credit history. Our Tampa Property Managementsafe than sorry.
company has even seen applicants use the social5) The credit report shows a balance due to a
security number of a deceased person in anUtility Company. If you ask the prospective
attempt to cover up their own bad history.tenant, they will usually pretend to be surprised.
2) Verify the Employer information. ApplicantsOwing money to a Utility company is a major red
who have recently lost their job will often have aflag. In our experience, 90% of tenants with this
friend or family member pretend to be theirkind of history turn out to be serious problems.
supervisor. I require our property managers toDo not approve anyone with this issue on their
find and call the main phone number of thecredit report.
business and ask to be patched through to the6) Immediate Move Ins. It is hard to resist
supervisor or HR Dept. Most legitimate companiessomeone with some cash in hand that wants to
will require you to fax in the application beforerent the unit you have had vacant for 15 days,
releasing personal information on their employee.but often times the people looking to move in the
We also require two recent pay stubs. If you dosame day are hurrying to get in because they
these two steps, you will find the tenants whohave just skipped on their current lease or are
are attempting to lie to you very quickly.hoping to get in before something very negative
3) Question the Landlord. If the previous addresshits their credit history. Be very thorough and ask
was managed by an individual versus a verifiablea lot of questions.
property management company, pay close7) The tenant has no rental history. You will
attention to their answers when speaking withencounter younger people on a regular basis with
them. Similar to their employment history,no previous rental history. I realize that some of
applicants will put the phone number of a friend orthem will be decent tenants; however, it is not
family member as their current landlord so thatworth the risk. They should only be approved
you don't find out they just skipped out on awith a qualified co-signer.
month's rent and trashed the unit. The personIf you keep these 7 items in mind when qualifying
posing as their Landlord will often pause and useyour prospective tenants, your property
"umm" and "uhh" when trying to come up with anmanagement company will save a ton of money
appropriate answer to your questions. They doand aggravation by avoiding the dreaded
not know how to answer them in a professional"nightmare" tenants.
manner. Ask detailed questions and if you feel