Ten Warning Signs Of Bad Renters

My dad owned and managed seven rental houses. Some tenants were so trouble free that he forgot about the property. The retirees were the best tenants because they would do maintenance and improvements out of sheer boredom. Other tenants were pure trouble and cost him more than he made. One tenant in particular ended up moving in extra relatives into a 2 bedroom, 2 bath, 1 car garage home with about 800 square feet of living area. They idled away each day playing poker and smoking and by the time they moved, the ceilings over the poker table were chocolate brown with cigarette smoke and the house smelled so bad that we had to pull all the carpets out the front door and bleach the concrete slab. Walls had to be cleaned thoroughly and then painted.

What is a bad renter? A bad renter is someone who either doesn’t pay in a timely manner or does not take proper care of the property, or both. It’s not that hard to be a good renter, you simply pay the rent, cut the grass (if applicable), and don’t destroy the rental unit. A minimum level of normality is required to be a good renter. It’s not a difficult goal.

Here are the top 10 warning signs of potential bad renters:

1. They resist a credit check and refuse to give complete information on the application. While there are valid reasons for a low credit score, such as medical issues or losing a business, the act of trying to hide one could be an indication of deeper problems.

2. They don’t want to show you their present residence without an appointment. I heard of an owner/manager who would always follow the potential tenant home after a showing and do a spot inspection. If he didn’t like what he saw and smelled, they were ruled out. He never had a bad tenant after many years in the rental business.

3. They don’t want you to have communication with their former landlord. I wonder why?

4. They don’t have a checking account or they can’t come up with the security deposit. Either could be an indicator of deeper financial problems. If you mismanage your account too many times, they will not only close your account, you will be put on a list between bankers that will block a new account. If they can’t come up with payments in the beginning, there is more trouble to come.

5. They are living with a significant other who does not want to fill out paper work or be responsible for the rent. Can you say “outstanding warrant?”

6. They show up to look at your rental in a tee shirt with a marijuana plant on it. ‘Nuff said.

7. They cannot give a logical explanation of the source of their income. And, yes, it is your business if they are going to live in your unit.

8. They smell strongly of cigarettes, cigars, or animals. This is how your rental unit will smell a few weeks from now. Never believe the pitch about how clean their animal is. It might be true, but why risk it? I noticed something when I traveled with my mother and her dog. Only the dumpy motels and hotels allow dogs. The dog could be fine now, but with age could become ill and lose control of its bowel movements.

9. They drive a poorly maintained vehicle that is dripping oil. If they don’t take proper care for a high ticket item that they own, they won’t take care of yours. And, think about it, if the oil is dripping on your driveway, they are already destroying your property and they haven’t even moved in yet.

10. Your gut feeling. Sometimes the paperwork is fine and there is nothing you can put your finger on, but you have this feeling that something is not right. Every time I ignore that feeling, I later regret it. One manager of higher end rental houses I spoke with said a couple pulled up to his office in 2 Mercedes cars dressed in designer clothes and expensive jewelry. Something didn’t feel right. They rented a house, filled it with illegal drug shipments, left two Dobermans to guard the drugs, left automatic feeders and waterers, and left for weeks at a time with no way for the dogs to get out to relieve themselves. Needless to say, when they vacated the house, it was trashed.

By heeding these 10 warning signs you can greatly decrease or eliminate the risk of bad renters in your properties. Do the work on the front end and you will have a more positive and more profitable management experience.