Spotting Red Flags: A Cautionary Tale from Tenant Screening
Yesterday brought an unexpected lesson in tenant screening, and it’s a story worth sharing. It’s a reminder of why diligent screening is essential in property management. Let’s dive into the tale of a little old lady who seemed harmless but raised several red flags.
The Introduction She appeared at one of our rental properties—a petite, white-haired lady, looking to move in with her mom and cousin. She seemed sweet and eager, a potential tenant who could be perfect for the quiet neighborhood. But first impressions can be deceiving.
Red Flag #1: The Eager Offer Our first warning sign came quickly. She declared she’d be back tomorrow with first and last month's rent, ready to take the place with no questions asked. While enthusiasm is great, too much eagerness can indicate desperation or an attempt to bypass the screening process. It’s a red flag that shouldn't be ignored.
Our Screening Process We explained our tenant screening process, emphasizing the importance of background checks and rental history. We use a software that does credit score, criminal record checks, LTB cases and law suits. We are upfront with applicants about this process as we understand life happens and do not discount anyone based on what this brings forth if they are upfront and honest with us. This step is crucial for ensuring that potential tenants will be responsible and reliable.
Red Flag #2: Current Rental Disputes As we dug deeper, we discovered she currently has an open case with the Landlord and Tenant Board (LTB) against her present landlord. Even more troubling was that she hadn't paid rent in months. This kind of ongoing dispute and non-payment history is a significant red flag. It signals potential future issues, including the risk of eviction and financial losses.
Red Flag #3: Criminal History The final red flag was when we inquired about her past. She had been in prison nine years ago for cheque fraud. While everyone deserves a second chance, this kind of criminal history, combined with the other red flags, painted a concerning picture.
The Takeaway We got all of this information from her without running the checks yet. Interesting how much you can get to know people if you just set the stage to allow for open communication. Tenant screening is a critical part of property management. Here are some key red flags to watch for:
Eagerness to Skip Formalities: Tenants who are too eager to skip the screening process or offer to pay immediately should be carefully scrutinized.
Current Rental Disputes: Ongoing issues with current landlords, especially those involving non-payment of rent, are significant red flags.
Incomplete or Evasive Answers: Be wary of applicants who provide incomplete information or evade questions during the screening process.
Criminal History: While past mistakes shouldn’t automatically disqualify someone, a history of serious offenses, especially related to fraud or financial misconduct, should be considered carefully.
Inconsistent Information: If the information provided by the applicant doesn’t add up or seems inconsistent, it’s worth investigating further.
Conclusion Yesterday’s encounter was a stark reminder of why we stick to our thorough screening process. While it can be tempting to fill vacancies quickly, it’s essential to take the time to ensure prospective tenants are a good fit. This protects not only the property but also the peace of mind of other tenants and the landlord.
Stay vigilant, and trust your instincts. After all, it's better to wait for the right tenant than to rush into a decision that could lead to headaches down the road