Tenant Background Check: Beware of the Five Red Flags That Can Indicate a Bad Tenant

Renting out a property can be a lucrative business, but only if you have good tenants. Every landlord who has been in the industry long enough has one (or sometimes more) nightmare tenant stories to tell. So as not to risk history repeating itself, you better have a very thorough screening process in place. Conducting a comprehensive tenant background check should help you single out the bad tenants. Keep an eye out for these five red flags.

Unsettled Debts

One or two late payments is hardly an indicator that one will be a bad tenant. If you’re feeling generous, you can let that slide but one thing you should never neglect is a problematic debt history. You should think twice about taking in an applicant who has hefty loans, maxed out credit cards and unpaid balances. Look out for serious signs of financial trouble such as bankruptcies, liens, or a history of unpaid rent with a previous landlord. This kind of tenant will most certainly fail to keep up on paying rent. Read more from this article: http://bit.ly/2AgjdnD

The Red Flags You Should Watch Out for Following a Tenant Credit Check

A tenant credit check gives landlords information about a prospective tenant’s borrowing history and indicators of their financial responsibility. Depending on the agency that runs one for you, it will show you a person’s outstanding debt, loan requests, payment patterns, and public records. It could even inform you about other parties that have recently requested credit checks on that person.

The tenant credit check is one of the most significant tools for deciding whom to rent out your property to. But once you get that comprehensive credit history, which details should you focus on? Read more from this article: http://bit.ly/2hYnZiM

Got Some Prospective Renters? It's Best to Have Them Go Through Tenant Screening First

Before you even give a prospective tenant any consideration, it's always better to have them undergo rigorous tenant screening first. It goes a long way in making sure you accept the appropriate renter for your property. Here's what the screening process can do for you.

It Gives You All the Information You Need

When you get a tenant screening done on your prospective renter, you can expect to get important background information on this person. This includes the tenant's credit history. A credit history with no late payments, collections and bankruptcies is a good sign and often results in a high credit score for that tenant. A favorable credit history serves as a good indication that this tenant will pay the rent on time. On the other hand, a tenant’s credit history with many late payments and collections should be a warning that there is a high likelihood that this tenant will not pay the rent on time. Read more on this article: http://bit.ly/2fQzdbm