For Las Vegas landlords and rental property owners, finding the right tenants is a key aspect of running a successful business. Renting to unqualified tenants can cause several issues, including late rent payments, damage to the rental property, complaints from other tenants, and possible legal troubles. Luckily there are some tenant red flags that you can keep your eye out for.
If you want to find the best tenants to protect your investment, it is crucial to look for warning signs that may indicate an applicant is problematic. Our Henderson and Las Vegas property management experts share the top 10 tenant red flags you do not want to ignore.
1. Incomplete Applications
During the screening process, you want to make sure every rental application is complete and has all the information you need to make the most informed decision. Essential details the applicant should have include:
- Personal information
- Residence history
- Employer information
- Proof of income
- References
If the applicant left out essential details, it could be a sign that they are hiding something that could affect their eligibility. Even if it was an honest mistake to not fill out the rental application completely, they should be able to provide the necessary information if asked. To avoid issues, it is often best to disregard incomplete applications.
2. Inaccurate Details in the Rental Application
While a fully filled out rental application is a good thing, you must also verify that all the information is correct. People who know they do not meet the eligibility requirements to rent the property may try to falsify or embellish details. This is a huge tenant red flag.
If you cannot verify certain details, including employment, income, or rental history, consider moving on to the next rental applicant.
3. No References or Bad References
Another potential tenant red flag is when potential tenants do not provide references, or their references raise concerns when contacted. Previous landlords or employers will have a good sense of this person’s level of responsibility, reliability, and professionalism, so it does not always bode well when they do not have favorable things to say.
4. Prior Evictions
Rental applicants who have a prior eviction on their record may have a history of financial challenges or inability to comply with the lease agreement. Evictions often happen due to:
- Non-payment of rent
- Lease violations
- Excessive property damage
- Illegal activities
- Disturbing other tenants
- Failure to vacate
Of course, every situation is different, and there may be reasonable explanations for an eviction. Carefully screen rental applicants and ask further questions to understand the full story behind their eviction before considering them for the tenancy.
RELATED: 8 Landlord Tips for Collecting Rent on Time
5. Unstable Income or Employment
During the tenant screening process, it is vital that you verify an applicant’s employment and income to ensure they are financially stable. Not having any proof of income or employment to show is definitely one of the top tenant red flags landlords must consider.
Instead, you want to see that they make enough to cover the monthly rent amount and their income does not fluctuate too much from month to month. Likewise, a solid work history shows that they are more likely to have a steady income and pay rent on time.
6. Poor Credit
Most Henderson and Las Vegas landlords will run credit reports as a way to evaluate a rental applicant. Credit reports can tell you a lot about potential tenants, including:
- What types of accounts they have open
- Riskiness of their debts
- If they regularly make payments on time
- Overall number of credit inquiries
- Past bankruptcies or collections
If the credit report shows a poor credit score and substantial debt, landlords should tread carefully before moving forward with a lease agreement. If you do decide to work with a tenant who has lower credit, there are ways to mitigate financial risk.
7. A History of Frequent Moves
People who move around a lot may not be the most stable tenants, leaving you with lost income and a vacancy to fill. A long rental history that shows they only stayed at each property for one or two years may be concerning if your goal is to find a long-term tenant you can trust.
8. Rude or Aggressive Behavior
Another one of the top tenant red flags is rudeness or aggressive behavior, both during the rental application process or throughout the duration of the lease agreement. Renting to someone who is respectful and courteous can go a long way in building a lasting landlord-tenant relationship.
On the other hand, a tenant with a bad attitude can become confrontational with you or your other tenants. This could lead to unnecessary misunderstandings that take time and energy away from your landlord duties.
RELATED: 7 Tips for Landlords on Handling Tenant Conflicts
9. Criminal Background
When conducting background checks on applicants, pay careful attention to any history of criminal activity. Although not all convictions are serious offenses that would disqualify someone from renting your property, you do want to be wary of individuals who have a violent past and could endanger others.
10. Only Willing to Pay Rent in Cash
While paying cash for rent might not seem troublesome on the surface, people who are only willing to cover rent payments in cash may have financial issues they are trying to cover up. For example, they may want to keep you from running a credit check or avoid you diving into their income source too much.
Additionally, cash-only tenants can make it more difficult to get rent payments, especially if you do not live in the same city or state as your rental property. Tenants who make online payments can streamline the rent collection process and ensure rent is paid on time.
Tenant Screening and Property Management Services at Black & Cherry Real Estate
The Henderson and Las Vegas property managers at Black & Cherry Real Estate have decades of combined experience helping landlords with the tenant screening process. We have resources to connect you with the right applicants and narrow down your options to only qualified tenants who check all your boxes.
If you want to learn more about tenant screening or our other property management services, contact our property management team today. We can schedule a consultation to discuss how we can help with lease agreements, rent collection, maintenance scheduling, accounting, pet deposits, and more.