Property Manager/Landlord: IE – Private Eye! Are Professional Tenants Getting One Over On You?

Being a rental property owner or landlord has its undeniable perks — the potential for a healthy ROI, a diversification of your asset portfolio, and the satisfaction of providing quality housing being just a few. However, with these perks come risks, and perhaps the biggest issue is the tenant who isn't as they seem. The professional tenant, a master at exploiting loopholes in the rental system, can tarnish your rental property's reputation, cost you thousands, and eat away at your patience and time.

Navigating the world of tenants can often feel like detective work, with every application, reference, and rental history serving as a clue to unravel the tenant's true intentions.

In this blog, our team at Osprey will equip you with the knowledge and strategies to spot, avoid, and deal with professional tenants.

Identifying Red Flags in Tenant Applications

The paper doesn't lie, but it can definitely make things unclear. The first line of defense against professional tenants is the application process. It's important that every statement, every dotted 'i', and crossed 't' be examined. Red flags could be in the form of:

• Inconsistent Employment Histories: Jumps from job to job or unexplained employment gaps can indicate instability.
• Fraudulent Income Claims: If a supposed high-earner presents pay stubs that seem off or are overly difficult to verify, consider it a warning.
• Poor Credit and Rental History: A credit report is a decisive reference; patterns of poor financial management or troublesome tenancy behavior are clear signs to reject the application.

Another aspect in identifying red flags revolves around the references provided by prospective tenants. Often ignored, these could hold valuable insights or lead you down a rabbit hole of distractions.

Professional tenants may list acquaintances or complicit previous landlords instead of genuine references. To counter this, verification is the key. Contact each reference personally, asking detailed questions about the tenant's rental history, behavior, and reliability. Watch out for overly positive recommendations or vague responses.

Furthermore, an unwillingness or delay in providing contact information for references should raise your eyebrows. This due diligence can unveil patterns of deceit and help you steer clear of potentially troublesome tenancies.

Understanding the Tactics of Professional Tenants

Professional tenants, true to their name, are skilled at working the system in their favor. Signs of their tactics can be observed in their frequent filing of civil suits, particularly targeting landlords. They may exploit your avoidance of conflict as a means of leverage in these situations.

Another indicator is 'The Shopper' type, who indiscriminately applies to multiple listings at once. They prioritize quantity over quality, focusing more on finding a loophole in the system rather than a place to call home. Their approach lacks consideration for crucial factors like location, size, or layout, leading to a superficial search process.

Furthermore, if a tenant pushes for early termination clauses, while not necessarily negative — in combination with other warning signs, such as a decline in communication about property maintenance or expressing dissatisfaction with the neighborhood — it could signal intentions to vacate within a short period.

Legal Recourse Against Fraudulent Tenants

Knowing your rights and the legal steps available can significantly bolster your position when dealing with a tenant who has misrepresented themselves. If a tenant has provided false information, several options can be considered to address the issue effectively.

One option is eviction, which is the most direct step to take if the situation escalates to non-payment of rent or significant damages caused by the tenant. Eviction provides a clear and legal process to remove the tenant from the property.

In cases of less substantial issues, The delicate balance between data-driven decisions and intuitive judgment lies at the heart of a sound tenant screening process that can offer a resolution without the complexities of a full-blown court case. This option may be suitable for addressing minor disputes or breaches of the lease agreement.

Additionally, tenant blacklisting can be utilized as a preventive measure against future problematic tenants. By utilizing databases and services that track unreliable tenants, property owners can share information and reduce the risks associated with renting out properties. This proactive approach can help property owners avoid potential issues and protect their investments in the long run.

Effective Background and Credit Checks

Conducting thorough background and credit checks is paramount in identifying and avoiding professional tenants before a lease is signed. This diligence reveals crucial financial information and sheds light on the applicant's behavior and reliability as a tenant. It's recommended to incorporate a multifaceted screening process that includes:

• Credit Report Analysis: A tenant's credit report can reveal much about their financial stability and responsibility. Look for patterns of late payments, debt levels, and any past bankruptcies, which could indicate financial management issues.
• Criminal Background Checks: These checks can uncover any past behaviors that might be concerning, including fraud, theft, or other criminal activities. It's essential to ensure that you're compliant with local laws regarding the use of criminal records in tenant screening.
• Previous Landlord References: Contacting previous landlords can provide insights into the tenant's behavior, timeliness in rent payments, and any previous issues with property damage or lease agreements. Be wary of references that seem too enthusiastic without providing specific details, as they might not be genuine.
• Employment Verification: Verifying the tenant's employment and income ensures that they have a steady source of income to cover the rent. It's also an opportunity to confirm the tenant's job stability and long-term financial prospects.

By implementing a comprehensive screening process, you can reduce the property management risk of encountering professional tenants. It's important to approach each applicant with due diligence, treating the screening process as a critical investment in the property and your financial security.

The Role of References in Tenant Screening

The emphasis on references in the tenant screening process cannot be overstated. A thorough examination of a potential tenant's rental history, through the lens of their previous landlords and personal references, serves as a direct line into their past behavior and reliability. It's an investigative step that provides real-world insights that often go beyond what can be gleaned from documents alone.

A prior landlord can disclose if the tenant was punctual with rent payments, maintained the property responsibly, and complied with the terms of their lease. Conversely, personal references can offer a glimpse into the character and personal responsibility of the applicant.

However, it is crucial to approach these references with a critical eye; recognizing that while positive feedback can be genuine, it may also be misleading if the reference has a bias toward the applicant. Therefore, asking the right questions and seeking tangible examples of the tenant's past behaviors is key to making an informed decision.

Documenting Everything for Legal Protection

Your notes could be the deciding factor in a he-said-she-said scenario. Here are some tips to help protect yourself:

• Record Phone Conversations: If you feel a conversation is significant or could potentially safeguard you against a tenant's false claims, consider recording or documenting it for reference.
• Signed Agreements: It's advisable to ensure that every agreement, no matter how small the change, is signed. This signature could play a pivotal role in legal proceedings if needed.
• Complete a Detailed Move-In Checklist: Pay close attention to details when completing the move-in checklist and property inspections. Any discrepancies noted here might hint at potential issues during move-out.

Staying vigilant and employing comprehensive tenant screening strategies not only preserves the integrity of your property but also ensures a harmonious landlord-tenant relationship that stands the test of time.

Trust Your Instincts and Do Your Research

The delicate balance between data-driven decisions and intuitive judgment lies at the heart of a sound tenant screening process. Intuition, honed by experience and knowledge, plays an indispensable role when red flags are subtle and the data inconclusive. This instinctual guide can often alert you to inconsistencies or potential issues not immediately apparent.

However, instinct should always be coupled with rigorous research. Exploring public records, online presence, and court documents can reveal patterns of behavior that a prospective tenant might prefer to keep hidden. This combined approach enables property owners and landlords to make well-informed decisions, safeguarding their property and ensuring a positive, productive relationship with their tenants.

Trusting your instincts while committing to thorough research provides a strong foundation for identifying and mitigating the risks posed by professional tenants.

Dodge Professional Tenants With the Help of Osprey Property Management

Navigating the challenging landscape of property management and tenant selection requires landlord vigilance, thorough due diligence, and a commitment to best practices in screening and legal protection. Property managers and landlords can protect their investments and foster a healthy, respectful landlord-tenant relationship by identifying red flags early, understanding the tactics of professional tenants, and employing robust screening processes including effective background and credit checks.

At Osprey Property Management, we understand the complexities and challenges you face in managing your rental properties and dealing with professional tenants. Our team of experts is equipped with the latest tools, resources, and industry knowledge to assist you every step of the way. From conducting in-depth tenant screenings to offering legal guidance and support, we are here to ensure your investment remains secure and profitable.

For peace of mind and a hands-on approach to property management, contact us today. Let's discuss how we can tailor our services to meet your unique needs and help you achieve your property management goals.