How to Avoid Being Scammed by Bad Tenants: A Comprehensive Guide for Landlords
Renting out your property to the wrong tenants can be a costly mistake. Ellen Wood's advice is invaluable for landlords like you. I combine her suggestions with an additional criterion: never rent to anyone with a past eviction, regardless of how long ago it occurred. Choosing between applicants with marginal credit reports? Opt for the top-performing candidate. Always trust your instincts; if you don't feel comfortable with an applicant, it's best to pass on them.
Don’t Skimp on Your Due Diligence
Thorough due diligence is essential to protecting your investment. Forgo taking a Credit Karma screen shot and opt for professional background checks instead. These checks are more thorough and reliable. Verify the employment of applicants by calling their employers. Don't rely solely on the information provided; you might discover that the phone number given is actually a family member's extension rather than a legitimate employment connection. Observe the potential tenant's behavior during the viewing; if they breeze through it without asking questions, they might not manage the property well.
Professional Background Investigations
A background investigation conducted by seasoned professionals can be incredibly valuable. These experts have access to numerous databases and may even have connections inside rental companies. Their insights can provide you with more accurate and reliable information. Don't skip this step. Even if you have done thorough due diligence, surprises may still occur.
Qualify Your Applicants in Person
Despite the thoroughness of background checks and reference calls, it is crucial to meet your applicants in person. Study their behavior, their car, and their appearance. Are they spending more on non-essentials than they claim? Are they organized and responsible, or do they seem disheveled? These observations can give you a better sense of their financial discipline and overall fit for your property.
Know Your Laws and Leases
No matter how much you know about your applicants, you will still encounter bad tenants from time to time. It's essential to be familiar with your local tenant laws and your lease terms. Understand the difference between an eviction and a lease renewal. Consulting with an attorney who specializes in renter law can provide you with invaluable guidance. Even if you don't plan to use them immediately, it's wise to invest in their expertise to ensure you handle future issues effectively.
When you're concerned about the eviction process or living in a remote area, find a local attorney who specializes in this area of law. Request a consultation to understand the necessary steps and the entire process. Form a relationship with this attorney so you can stay informed about updates and changes in the law. This proactive approach can save you significant stress and potential legal complications.
Use Background Service Providers
A reputable background service provider can streamline the tenant screening process. Search online for rental background services in your area. For example, you might find a suitable company in Arvada, Colorado. These services can provide you with an automated application and screening process, saving you time and effort. Make sure to verify their credentials and track their performance to ensure they are delivering the quality service you need.
Conclusion
Renting to bad tenants can lead to financial losses and property damage. By following these comprehensive guidelines, you can minimize the risk of being scammed. Trust your instincts, conduct thorough due diligence, and stay well-informed about your tenant laws and lease terms. Utilize the services of professional background investigation firms and background service providers to safeguard your investment. With these steps in place, you can ensure that your property is well-cared for and your investment is protected.