Nothing makes being a landlord easier than getting the right tenant in your property. The best way to ensure that this happens is with a tenant background check. This gives you a glimpse into how a prospective tenant handles his money, his credit and other important aspects of his financial life. Leasing to a tenant who has had problems in the past is risky and can lead to headaches and financial losses.
So what exactly are you looking for in a background check? Here are three red flags that should make you think twice before renting to a prospective tenant.
This is probably the biggest red flag and the best indication that a prospective tenant might not pay his rent on time. If he has had problems paying his bills in the past, then there is a good chance that he might still have this problem. It is best to seek another tenant.
A Prior Eviction
This, too, is a big red flag. If a prospective tenant has been previously evicted, then he most likely did not pay his rent or he violated his lease in some way. In either case, this is not a tenant that you want in your property.
Not Enough Income
The prospective tenant has to earn enough to pay not only his rent but his utilities, groceries and other bills. If his income is too low, who will he pay first? It might not be you. A good rule of thumb is that a tenant's monthly income is at least two and a half to three times as much as his rent. If it is not, then consider his low-income a red flag and look for another tenant.
Save yourself hassles, headaches and time by ensuring that you get the right tenant. Start with a thorough background screening.
Published by your friends at VerticalRent