Red Flags to Consider When Screening Potential Tenants: A Comprehensive Guide
When screening potential tenants for your rental property, it is important to be thorough and diligent to ensure you are making the best decision. This guide aims to provide a comprehensive list of red flags to consider, helping you to protect yourself and your investment. While some of these concerns may be based on personal preferences or broader social issues, understanding and addressing them effectively can make a significant difference in your tenant selection process.
Facial Tattoos, Eye Nose and Lip Hardware, and Large Jewelry
One common set of concerns relates to a tenant's appearance and style. Items such as facial tattoos, eye, nose, and lip piercings, as well as large jewelry (such as hoop earrings measuring larger than a tea cup saucer) might not be to your liking. These preferences are subjective, but it is important to ensure that any such preferences do not come across as discriminatory or biased.
Criminal Records and Violent Felonies
Having a conviction for a violent felony can be a significant red flag. Such a record indicates a history of violence that could pose a risk to your property and fellow tenants. Similarly, affiliations with individuals like those in NAMBLA or known drug dealers could also be concerning, as they may indicate potential illegal activities or a lifestyle that is not in line with your property's standards.
Previous Evictions and Income Verification
Previous evictions can serve as a clear red flag, especially if they were for drug-related activities. This not only speaks to past issues but also can indicate potential future risks. Additionally, if a tenant has no visible means of support, this can be alarming, suggesting a lack of financial stability or fraudulent claims.
Objections to Information Sharing and Tenant Screening
Denying the right to contact your current landlord, current or previous employers, or access one's criminal record can be a serious issue. These would allow for a more comprehensive background check and help you make a well-informed decision. Not supplying income and/or bank account information to verify Debt-to-Income (DTI) ratios can also be detrimental, as it can be difficult to assess the financial stability of the tenant without this information.
Objections Raised:
1. Not Allowing Contact With Current or Previous Landlords or Bosses
It is crucial to have the ability to contact a tenant's current or previous landlords and bosses. This can provide insights into their past behavior and reliability. Denying this can limit your ability to make informed decisions.
2. Refusal to Sign Leases by All Adults Living at the Property
Requiring all adults living at the property to sign the lease is a standard practice. This ensures that everyone sharing the living space acknowledges and agrees to the terms and conditions of the lease. Denial of this request can raise questions about the tenant's willingness to abide by the terms set forth.
3. Inadequate Financial Verification
Providing income and/or bank account information to verify the tenant's DTI is crucial. A DTI ratio of 25% or less is generally considered a healthy financial standing, and refusal to provide this information can be a significant red flag. It helps ensure that the tenant can afford the rent and maintain stability.
In Conclusion: Understanding and addressing these potential red flags can help you make a more informed and confident decision when selecting a tenant. Being transparent and thorough in your process will not only protect your investment but also create a better living environment for all involved.