The idea is to identify the red flags of problem tenant so you don’t end up in a long lease with a tenant that will cause you unnecessary headaches.
One of the benefits of hiring a property manager is we get lots of experience dealing with problem tenants and our experience allows us to minimize the chances of getting them. Here is a list of a few common red flags of a problem tenant that we look for and that you should watch for.
- Prospective tenant willing to take the property as-is: We like to get a jump on marketing and sometimes we show properties that are not completely ready. People that are willing to take the property as-is before cleaning and ready tend to be a red flag. They either have low standards, which likely leads to deferred maintenance and dirty property or they are in a hurry which I will cover more below.
- They want to negotiate handyman services: Don’t fall for this. You will be paying for every Home Depot trip and every month handyman work will be supposedly done and you will never get your full rent amount. Work will likely be low quality as well.
- Prospective tenant does not have a bank account or credit card: In this day and age it’s not common for somebody to not have these items. It is a red flag for us. W take our applications online with a card to ensure thy are established enough to have some basic financial structure as any good tenant would.
- Prospective tenant is overly picky: If they come through the property and nit-pick it apart you are likely in for tons of maintenance items each month.
- Prospective tenant does not have all the move-in money: They are short and want to work out payment arrangements. be careful with this in many cases they will be short each month as well and you will become their bank once this door is open.
- Prospective tenant wants to move in fast: In many cases if someone wants to occupy immediately they are trying to get a place before an eviction hits their credit. Be careful with this and verify their status with previous landlord.
- Low credit score: Many people that rent have low scores. But is the score low because of a short sale or medical bills or do they have collections from their cell phone provider, water company, cable company etc. There is a difference of someone that has fallen on hard times to someone with a complete lack of responsibility, you can easily identify this on their report. People that lack responsibility will walk away from your lease without any regard for the consequences.
Finding the right tenant even if it takes a little longer is worth it. An eviction, property turn, marketing for a new tenant is costly!
AZ Property Management Group manages properties in the Phoenix AZ area. Please contact us if you’d like assistance with your portfolio.