Top 7 Red Flags to Watch for When Screening Tenants

TOP 7 RED FLAGS TO WATCH FOR WHEN SCREENING TENANTS

You can’t be too careful when screening a rental application. Below are the top 7 red flags to watch for when screening tenants.  You need to be aware of all seven because, over my years of experience, I have encountered each one of these multiple times. If you don’t know what to look for, you can get bitten, and it will hurt.

1. Splitting up the security deposit. I get asked a lot if they can pay the deposit over time. The answer is no, no, no. You never want to do that. It will almost always come back to bite you. The reality is you’re looking for someone who can afford to live there. If their finances are so tight that they can’t come up with the first month’s rent and the deposit, then the next month, when they’re supposed to pay the rest of that deposit, something will come up—whether it’s a car breaking down or unexpected medical bills. You will inevitably need that deposit, and you’ll get tired of trying to chase them down for payments. So, never let them split up the deposit. While I get asked this all the time, and often they respond with, “That’s okay, I can figure it out,” it’s always in your best interest to say no. They can figure it out, or you can rent to someone who can afford the place more easily.
2. Pushy Rental Applicants are just Bullies. You don’t want to be pushed into renting to someone just because they are pushy or act like a bully. This can manifest in various forms; they may insist that they don’t need to fill out the application correctly or that they are above the rules you have in place. They might say things like, “So it’s your way or the highway, right?” and try to make you feel bad for not accepting their situation. Don’t be bullied. If someone tries to intimidate you or make you feel unimportant, step back, take a breather, and talk to a friend. You’ll quickly regain your confidence and understanding of the situation. If you need to, just say, “No, thank you. Your application has been denied.” Let them say their rude remarks, and then move on.
3. Rental Applicants who insist “I’m special.” When someone tells you they are special or that they’ve prayed about it and feel they are meant to live in a particular home, it’s a red flag. While they may not be bullying you outright, they are attempting to manipulate you into stepping outside your criteria and procedures. You don’t want to minimize their feelings, but you should trust your own judgment and procedures. Either their application fits or it doesn’t; their special circumstances shouldn’t influence your decision.
4. Meeting Rental Applicants in person. This one is different from what most people might think. I prefer not to meet applicants in person simply because I want to maintain consistency. I have a written set of procedures that I follow with every application, and meeting in person can introduce ambiguity into my decision-making. In today’s world, people expect to fill out applications digitally and receive answers promptly. If someone is insistent about meeting in person, it raises a red flag for me. Usually, it indicates they want to present themselves in a way that helps me overlook their credit report or criminal history. While meeting in person isn’t necessarily wrong, caution is advised if someone is very eager to do so.
5. Incomplete rental applications. If an applicant cannot or will not fill out an application completely, the answer is simply no. You can message them and say you’re missing some information and invite them to resubmit, but someone who does not follow the rules will likely cause ongoing problems.
6. Applicant in a big hurry. I often see applicants who say they need a place immediately, claiming urgency. Phrases like, “I need to move in tomorrow,” or “I’ve got money in my hand,” are red flags. You should ask yourself why they are in such a hurry. Did they get evicted suddenly? Usually, there isn’t a good reason for the urgency. While I can process applications quickly, their panic can serve as a warning sign that prompts further investigation into their situation.
7. Let prospective tenants talk. It’s amazing how much you can learn about someone when they open up. Many conversations start with prospective applicants saying, “Let me tell you about my situation,” and right away, I think it probably won’t work out. Let them talk; they might reveal that they are in the middle of bankruptcy or have numerous pets that make them difficult to rent to. It’s surprising how often people will list reasons why you wouldn’t want to rent to them. At the end of the conversation, you can simply confirm that it wouldn’t work out.