TENANT BACKGROUND CHECKS: ALERT! HOW TO SPOT RED FLAGS
Between “I lost my Social Security card” and “My girlfriend has my last pay stub”, a landlord can find an endless array of red flags that may signal a potential problem tenant. But you or your property manager can be looking for them and be prepared to react. Remember to
Be Alert, Be Skeptical, and Cross Check Information.
Here are some common tenant screening red flags:
A prospect who fails to completely fill out the application.
Can’t provide necessary documentary proof of information on the application.
Provides inconsistent info on the application itself or says something inconsistent.
Provides information that can’t be verified.
Appears nervous or in a rush to move in.
Acts overly friendly, and tries to dissuade you from verifying the application. “Trust me.”
An applicant without a bank account may indicate a lack of stability.
A “self-employed” applicant with no documentation substantiating a legitimate business (e.g. business license, bank account, business address).
American Apartment Owners Association offers discounts on products and services related to apartment management, including tenant debt collection, tenant background checks, technology, insurance and financing. Find out more at www.joinaaoa.org
Premium and PremiumPlus members receive discounts on Tenant Background Checks.
For more information on Tenant Background Checks, see our interview with Fidelity Information Corporation CEO Jeff Cronrod,TENANT BACKGROUND CHECKS: LITTLE KNOWN WAYS TO AVOID COSTLY MISTAKES.
This exclusive interview is included on the American Apartment Owners Association’s CD series, Real Estate Investment Secrets, twelve exclusive interviews with industry experts that will supercharge your ability to locate the best investment properties and manage or sell them for maximum profit.
Real Estate Investment Secrets is available exclusively through the American Apartment Owners Association. To purchase a copy, visit www.joinaaoa.org. Join as a PremiumPlus member, receive all the benefits of membership, and this CD series is our gift to you.
For tips on how your tenant background check can affect your chances for recovery of unpaid rent, check out our series on the blog “Seven Vital Tips to Help You Collect Your Tenant Debt”.