As a Louisville Kentucky landlord you should be on the watch for bad tenant warning signs. Being a landlord can be rewarding but also has its fair share of difficulties. You can do everything right; check references, validate income and employment, and verify financial and banking information. Sometimes, however, your renters can look great on paper but turn out to be irresponsible. Here are some tips and signs of a bad tenant so you can recognize a problem tenant quickly.

Bad Tenant Warning Signs – Avoids the Application

If the potential renter is weary of completing an application, that is a huge red flag for a potential tenant problem. When a prospective tenant does not want to complete an application, whether the renter is a stranger, an acquaintance, or a friend; this is not a good sign.

Avoidance or apprehension could be a sign that they do not want to disclose their information. Never move forward in the rental process without an application and thorough background checks regardless of your relationship status with the tenant. This problem tenant may take advantage of the situation and abuse the rental property as well as not pay rent.

The Tenants Financial Situation

A tenant must be able to afford the monthly rent. Reviewing the tenants employment, banking information, and income is vital to evaluating and identifying future tenant problems. One of the most important bad tenant warning signs is the tenant’s ability to afford the rental property. Check their length of employment to ensure stability and always request their most recent pay stubs as proof of income.

Tenants who jump from job to job and cannot hold steady employment is a red flag. If the rent exceeds more than 30% of the tenants monthly income, be wary of their ability to pay the rent. The tenant is more apt to not pay their rent, leaving you with the hassle of eviction and loss of income.

The Tenants Rental History

If a tenant cannot provide a consistent and stable rental (or ownership) history, be wary of renting to this Louisville tenant. Renting to a person who has lived in many places over a short period of time is a big problem and will turn into a huge landlord headache. These tenants tend to abandon the rental property (oftentimes leaving the property in bad condition) and cause landlords loss of income as well as cleaning and repair costs.

 

Bad Tenant Warning Signs – Tenant Will Not Pay Rent

If you missed the warning signs of a bad tenant and currently have tenants living in your Louisville KY rental properties, be prepared for the landlord headaches that may arise. One of the most common bad tenant warning signs is a tenant who struggles to pay rent consistently or will not pay rent at all.

As a Louisville landlord, you are responsible for paying your mortgage company even when the tenant does not pay you. Also, you will need to proceed with an eviction (which costs more money out of your pocket) in order to remove the bad tenant and attempt to recover your money.

Disruptive and Bad Behavior Tenants

Some tenants make it past the application process, financial verification, and background checks without issue. They may even pay their rent on time. The issue is their behavior. These bad tenants disturb the neighborhood with loud parties, noisy dogs, and disruptive children.

Sometimes they perform illegal activity (drug use) or have trouble with the law. This is one of the big, bad tenant warning signs because it means bad news for your home. Damages to the property occur more frequently and as the landlord you will deal with the complaints from the neighbors and law enforcement as well. Upon the tenants leaving the property, you will have to make all the necessary repairs and hope the security deposit covers the damage otherwise you will have to go to court to collect from the bad tenant.

Eviction Proceedings on a Bad Tenant

An eviction is such a hassle and costs you time and money to remove a bad tenant from your rental property. When a tenant is evicted from your property, the tenant usually does not clean the property and more often than not abandons their property in the home. The costs to remove the bad tenant’s property, repair damage, and clean the home are high. Landlords can include these costs in their eviction proceedings but an eviction takes time and recovering your financial losses takes even more time.

Being a Louisville Kentucky landlord is a lot of hard work and can be a serious money pit with significant loss of income when dealing with any of these bad tenant warning signs. If you have encountered any of these bad tenant issues, you know the financial hardship first-hand. If you are considering being a landlord with your vacant property, make sure you are ready for the potential issues tenants can bring.

If you are a veteran landlord who has experienced tenant problems and no longer wish to continue with your Louisville rental properties there is a solution. A real estate investment company can help remove all these landlord headaches in a stress free process. A real estate investment company pays you cash quickly for your rental property so you can move on, coming out ahead, and ready to start fresh. If you would like to discuss how we can help, contact ShH Homes today.