How to Avoid Huge Red Flags With Tenant Selection
Running a rental property business is a challenging task. One crucial segment that directly impacts success is finding the right tenants. How do we describe the right tenants? These are people who showcase excellent behavior in terms of taking care of the rental home, respecting the rules that the property manager or the landlord has clearly stated, paying their rent regularly without being made, participating in an open and transparent communication with the landlord or the property manager, and are willing to extend the lease minimizing the vacancy rates.
However, not all tenants are good tenants. In fact, some people might harm the rental business with their behavior. To avoid signing such tenants, landlords or property managers need to look for red flags in the tenant screening process and identify such tenants to eliminate them from the application process.
In this text, we will outline some tips that will help property managers or landlords identify potential red flags and help select responsible and reliable tenants.

False or Incomplete Information
When tenants apply to rent the place, they fill out an application. The way this application is filled is a strong indicator of a responsible tenant. The applicant who fails to provide information in that document or fills it out carelessly or with mistakes, there is a lack of attention to detail, and negligence could be a red flag.
Before giving them the application to fill out, the applicants need to know what is expected of them and what kind of information they need to provide. But you need to do this very clearly so there is no space for misunderstanding. If the tenant fails to do as you said, continuing your search for another tenant may be worth it. Remember that incomplete information indicates that the applicant is trying to hide something or is not serious about renting.
Poor or No Credit History

The next step in the tenant screening process is conducting a background check on the applicants. If you find information that suggests the tenant used to pay the rent late, had outstanding debts, or perhaps had previous evictions, it is a clear sign that this is a red flag type of tenant.
Of course, you need to ask the tenant the reasoning behind individual circumstances in which his background check is the way it is but bear in mind that consistently poor credit history could be a severe warning sign of potential payment issues in the future.
Lack of Income
Another red flag is the applicant’s lack or insufficient income, which means they won’t be able to meet their monthly rental obligations. Therefore, a step in the application evaluation process is to verify the applicant’s income and make sure that it is sufficient to cover the rent.
A general rule of thumb is that the tenants should ideally have an income at least three times the monthly rent so that, in uncertain times, they will be able to make regular rental payments. Again, checking the tenant’s employment history in the tenant’s screening process is essential. If you see that they have been swapping jobs frequently or have gaps in employment, consider these red legs as they may raise concerns about their stability and dependability in pain rent regularly.
Negative or No References
Another red flag is when the tenant cannot provide references from previous landlords and their applications. That might be attributed to their behavior as a tenant, which was not satisfactory. An even more vital red flag is negative feedback from previous landlords, and you should look into why the previous landlord has left such a negative reference as it will impact their future tenant behavior. If the tenant says it is their first time renting, you should check whether they’re telling the truth or want to hide the contact information of previous landlords who may provide negative feedback.
Criminal History
Checking the applicants’ criminal history is a must in the tenant screening process. While everyone deserves a second chance, certain criminal convictions can pose a risk to the other tenants. Such criminal convictions are violent offenses or causing property damage. This might certainly indicate that they are not a good choice for a tenant.
When it comes to evaluating such applications, you need to consider each case individually. This means that if an applicant had one criminal offense that happened many years ago, it might be a good choice to give them a second chance, but applicants with a long criminal history or several offenses aren’t a good choice for a tenant.
Poor Communication
You already know that communication is an essential part of choosing the tenant and afterwards, during the signing of the lease and the rental period. So, you need to pay attention to how the applicant communicates and how fast they respond during the application process. If there are frequent delays or failure to request documents on time, it might be a red flag that there will be potential future issues with communication and cooperation. You must make them understand that good communication is vital for a positive landlord-tenant relationship, so if they are not willing to invest their time in establishing good communication with you, they might not be a good choice for tenants.
The Role of Property Managers in Tenants Selection
Hiring a property manager can significantly impact the tenant selection process as they help to identify and avoid potential red flags. They have a lot of experience and expertise, as well as resources that they’re bringing to the table, and can make sure that a thorough vetting process is in place. Here is how they can help
- They can streamline the screening process, including detailed background checks, credit reports, and income verification.
- Due to their experience, they can quickly spot red flags in applications as they can bring professional judgment with them.
- They are well-versed in local and federal regulations regarding tenant screening, so they can help with the legal compliance of the process, minimizing the risk of discrimination claims.
- They are the mediator between the landlords and tenants, and they handle all communications professionally.
- Their set of skills involves conflict resolution as they handle difficult situations effectively, making sure that the relationship between the landlord and the tenants remains positive and professional.
Conclusion
Selecting the right tenant is critical to the success of the rental business. You must be thorough during the screening process to avoid potential red flags, choose tenants who will showcase good behavior, and take care of the property on time. Property managers can significantly improve the experience in tenant screening and selection with their expertise, knowledge, and transparent communication, and ensure that your rental property remains a profitable and stress-free business.