Finding great tenants is important in maintaining the profitability of your rental property. As a landlord in Beaufort, SC, tenant screening is one of the most essential steps in ensuring your rental unit remains occupied by responsible individuals.
While many rental applications look good on paper, identifying red flags early can save you from potential tenant disputes and financial losses down the road. Here are some key warning signs to watch for when reviewing a rental application.
Incomplete or Inconsistent Information
One of the biggest red flags in a rental application is missing or inconsistent information. If a prospective tenant leaves sections blank or provides vague answers about employment or residence history, it may indicate they are trying to hide something.
Always verify the information provided and request additional details if needed. An online rental application can simplify the screening process and ensure all required details are provided.
Poor Credit History
A tenant’s credit report can provide valuable insights into their financial responsibility. A low credit score, excessive debt, or a history of late payments may indicate that the applicant struggles with managing their finances. While not every applicant needs perfect credit, a pattern of missed payments, outstanding collections, or unfavorable credit check results can be a cause for concern.
Insufficient Income or Unstable Employment
A standard guideline for landlords like you is ensuring the prospective tenant’s monthly gross income is at least three times the rent. If an applicant’s income does not meet this requirement or they frequently change jobs, they may struggle to pay rent consistently. Verify employment history and request income verification via pay stubs, tax returns, and bank statements.
Eviction History
Eviction reports are essential in determining a tenant’s reliability. A past eviction is a major red flag when screening reports. While one eviction doesn’t necessarily mean they will be a problematic renter, multiple eviction records should raise concerns. Request references from previous landlords and previous employers to gain insights into their rental and financial history.
Criminal Background Check
A thorough background check, including a credit and background check, is essential. While federal fair housing laws prevent discrimination based on particular criminal histories, reviewing an applicant’s background check can help you assess risks to other tenants and your rental property.
Unreliable References
A great way to verify an applicant’s residential history is to contact previous landlords and personal references. However, be cautious if the listed references are difficult to reach, hesitant to provide information, or offer negative feedback. Some applicants may give fake references, so take the time to verify their legitimacy.
Reluctance to Sign a Lease Agreement
If a prospective tenant hesitates or refuses to sign a standard lease agreement, this could indicate potential issues. Lease agreements protect you and your tenant by outlining expectations, responsibilities, and rental terms. Ensure all terms are agreed upon before allowing move-in.
Disputes Over Rental Application Fees
While rental application fees help cover tenant screening reports, an applicant who argues over these fees may indicate financial instability. Also, if an applicant hesitates to complete the rental application form, it could be a sign of unreliability.
Let Stinger Home Management Handle Your Property
Tenant screening is time-consuming but important in securing qualified renters and maintaining consistent potential cash flow. At Stinger Home Management, we handle every aspect of property management, from reviewing applications to move-in inspections and lease agreements. Whether you own a long-term or vacation rental, we ensure that the screening process is thorough and compliant with all legal requirements.
Contact us today to learn how we can help you find responsible tenants for your rental property in Beaufort, SC!
