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How to Avoid Horrible Tenants

When it comes to property management, one of the worst things to encounter is a bad tenant. We know, the term itself should be self-explanatory as to why a toxic tenant should be avoided, but it helps to point out the specific reasons why they’re potentially ruinous to your property’s ROI. Mainly because people think that there’s no need to avoid horrible tenants, since they can be accommodated if you just go out of your way to work around their faults.
This line of thinking can be your downfall. You need to learn how to avoid horrible tenants because significantly increase the risk of the following:

  • Turnovers
  • Rent defaults
  • Evictions
  • Costly repairs
  • Lawsuits and legal troubles

Fortunately, knowing how to avoid horrible tenants can be easy if you know how to spot them from a mile away. We can help you learn this crucial skill through the following tips:

Avoid Horrible Tenants by Pre-Screening

Don’t show the property until you have pre-screened the tenant. This is because you stand to lose more with regard to time and resources when you can find out a lot about a potential tenant with a simple phone call or even an email interview.
Make sure you don’t ask questions that can be easily answered with a “yes” or “no,” because people will most likely just answer the one that boosts their chances, even if it’s not true. Ask leading questions and let them wiggle their way out of it. The good tenants don’t have anything to fear, while the bad tenants will out themselves. For example, mention that you will be doing extensive background and credit checks on all potential tenants, then ask them if there’s anything that they need to disclose beforehand in order to avoid misconceptions.

Take a Look at Their Car

If a tenant passed the pre-screening and you are ready to show them the vacant unit, make sure you take any chance you can get to see their car. Take a discreet look at the vehicle:

  • Is it clean?
  • Are there any unnecessary items on the floor?
  • Are the seats stained?
  • Does the car itself look well-maintained or in poor condition?

This is a very powerful method for weeding out potentially troublesome tenants, because people tend to treat their own car the same way they would treat their own home. In fact, in a tenant’s case, they may even treat the car better because they actually own it, as opposed to a rental house. Take the car as an indication of how they will treat your property.

The Shoe Rack Trick

This is another one that will help you avoid horrible tenants, but it requires preparation. It’s easy enough: just install a shoe rack on the property, and when you visit it along with the prospective tenant, make a point of taking off your shoes and putting it on the rack.
Most good tenants will follow your example and take off their shoes as well. This is because these tenants understand that they don’t own the property, and that there may be pre-existing rules set by the owner. Bad tenants tend to think they own the place, and will disregard any pre-existing rules.

Call Employers and Try to Speak to the Supervisor and HR

Calling an employer is par for the course when it comes to pre-screening prospective tenants, but many landowners get lazy and just talk to one person. To really get a good idea of the tenant’s potential, make sure you talk to their direct supervisor AND an HR department representative.
The two can provide you with all the important information, such as:

  • net income after taxes
  • their attitude at work
  • their punctuality (this is relevant to their ability to pay on time)
  • their respect for the company’s rules and regulations

Try to gauge the supervisor’s responses as well. You’re in the clear if the answers are decisive and professional. Hesitation on the supervisor’s part or defensiveness is a red flag.

Call the Prospect’s Current or Former Landlord

Sometimes you have to get it straight from the proverbial horse’s mouth: if the applicant was renting before applying, try to call their previous landlord. They can provide all the pertinent information you need to know about the prospect, and they are under no obligation or motivation to cover for the person.

Last But Not the Least, Inspect Their Current Home

Your last and most powerful tool is a visit to the prospective tenant’s home. Of course, you should not make it obvious that you’re assessing their home. Try to pass it off as just picking them up on the way or extending a courtesy. Because if they know what you are up to, they may decide to clean up and present their best foot forward.
The above tips may seem like extra work, but believe us when we tell you that they’re a fraction of the hassle you will deal with if you end up with bad tenants. If you avoid horrible tenants from the start, then you already cut down most of your future work.

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