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5 Red Flags to Look For on a Tenant Background Check

5 Red Flags to Look For on a Tenant Background Check

Are you worried about keeping the right people in your Orlando rental units?

Your rental property is an investment, and choosing tenants wisely can save you from headaches down the line. Conducting a thorough tenant background check is essential to ensure you select renters.

What are things that are causes for concern on background checks? Read on for our tenant background check guide.

1. Financial Instability

One of the first things you should check is the prospective tenant's financial stability. Look for signs of consistent income and financial responsibility. Red flags may include the following:

  • A history of late payments
  • Outstanding debts
  • Frequent job changes

A stable income is crucial to ensure tenants can keep up with the rent and any other charges associated with living in your rental property.

2. Past Evictions

Evictions can be a significant red flag when assessing tenant background check results. If a potential tenant has a history of eviction notices or legal disputes with previous landlords, it could indicate problems with paying rent on time or respecting the terms of a lease agreement.

While there may be valid reasons for past evictions, it's essential to delve deeper into the circumstances to understand the tenant's reliability. Having the most responsible tenants in your units will prevent all kinds of frustrating issues.

3. Criminal History

Safety is paramount when choosing tenants for your rental property. Conducting a criminal background check can help identify any concerning behaviors or past criminal activity. Look for offenses that could pose a risk to other tenants or property damage.

While minor infractions may not be cause for immediate rejection, serious offenses or a pattern of criminal behavior should raise red flags.

4. Poor Credit History

A tenant's credit history can provide valuable insights into their financial responsibility and reliability. Look for signs of financial irresponsibility, such as the following:

A less-than-perfect credit score shouldn't always disqualify a tenant right off the bat. It's still essential to consider the whole financial picture and whether they're likely to fulfill their rental obligations.

5. Inconsistent Rental History

Reviewing a tenant's rental history can provide valuable information about their behavior as tenants. Look for consistency in the following:

Red flags may include frequent moves, gaps in rental history, or disputes with previous landlords. Reliable tenants should have a track record of fulfilling lease agreements and maintaining a solid relationship with landlords.

You Need to Be on the Lookout for These Things on a Tenant Background Check

Conducting a thorough tenant background check is crucial when finding tenants for your rental units. By paying attention to red flags such as financial instability, past evictions, criminal history, poor credit history, and inconsistent rental history, you can look after your business. Remember, finding wonderful tenants is essential for the success of your rental investment in the long run.

Has running your Orlando rental property business been tricky? Contact Verandah Properties to discuss how our property management solutions can help. We've been uplifting real estate investors since 2003.