Avoid Tenants From HELL!

 

 

The only protection a landlord has from bad tenants…aka “tenants from hell” is to properly screen them prior to acceptance. A  Due diligence “check list” for tenants is part of our screening process to verify tenant information. By following this process you reduce the risk of fraud, vacancies, loss of income, and stress from dealing with tenants from HELL; thus, insuring you minimize property management issues, and inherent financial costs.

Always, do proper and detailed tenant checks and tenant screenings. The first time I did a tenant reference check I was not properly prepared. As a result, I learned from my mistake and put more thought into interview questions for tenant referencing. Remember that these references have been provided by the tenant and are most likely friends and family that would lie for the potential renter….so this should not be the only method for tenant background checks but it is one of importance. I do not way my decision heavily on the reference response but it is good to verify so that in the future if you need to track the tenant down for damages or unpaid rent you have more contacts on file.

Your rental application should have a section for tenant references. Try to get at least 2-3 references. The more references the better but they have to be strong tenant references. In my application process, former and present employers and past landlords are the most important people to interview for tenant screening. If a tenant cannot provide me with any of this information, I will mark the application as incomplete and move on to the next one. Of course there are some exceptions to this rule such as ‘self-employed’, student, retired, etc. but use your own discretion. If a potential tenant gives excuses as to why they do not want to provide you with the information you require ….that sends off red flags! You have to wonder what they are hiding.

When interviewing tenant references there is a basic structure as to how you should conduct the interview. To do a proper tenant Check……

 Greet and introduce yourself to the tenant’s reference.

The main purpose of your call is to verify information about your new potential tenant, which they provided you in an application, so tell the tenant’s reference who you are and why you are calling. Also, be polite and ask if they have time to talk. Being polite gives the tenant’s reference more comfort to speak to you.

 Verify tenant’s relationship as listed on the rental application form.

  • “How do you know the tenant?”
  • “How long have you known him/her?
  • “Tell me about their personality?”
  • “Would you rent to them?”
  • “Would you co sign for them? If no…..why not?”

Employer Interview Questions

  • “How much does the tenant make per month?”
  • “How many hours does the tenant work?”
  • “Is the tenant reliable? Punctual?”
  • “Does he/she get along with co-workers?”
  • “What are the tenant’s strengths/weaknesses?”
  • “On a scale from 1-10, what would you rate him/her as an employee?”
  • “Would you hire the tenant again?”
  • “Would you send me a work verification letter?”
  • “How long has the tenant worked for you?”

 

 Past/current Landlord Interview Questions

  • “How much is the current rental price of the property?”
  • “Did the tenant pay the rent on time, every time?”
  • “How long has the tenant lived in your rental property?”
  • “Why is the tenant moving out?”
  • If moving due to relocation – “Did the tenant give a proper 60 day notice in writing?”
  • If tenant already moved out – “Did the tenant leave the rental unit in good condition?”
  • “Where is your rental property located?”
  • “Have there been any damages or occurrences to the property?”
  • “If the tenant were to re-apply today would you accept their application?”
  • “On a scale from 1 – 10, where would you rate the tenants?”

******Important tip: If possible always call 2 or 3 past landlords. The current landlord may lie to you in order to get “the tenants from hell” out of their property!!!

Ask the right questions now or deal with the tenants from hell!

I want to stress the importance of having a detailed tenant screening process. Once a tenant moves in to your rental property, it is difficult to have them evicted. It is my goal to help you avoid renting to tenants from hell!!! By asking the right questions, recognizing the red flags and doing proper due diligence, you will save yourself from a lot of unnecessary stress. Some bad behaviour is hard to break so finding out in advance will minimize your risk of dealing with potential headaches and increase your chances of finding a great tenant. Luckily there are lots of them out there.

*****this is a small fraction of the screening that we do at WAM Property Management.

Disclaimer: The information provided in this post or any other post is not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.

Have you ever had a tenant from HELL? Tell us about it…..Comment Below