Tenant Selection: 10 Potential Red Flags

We imagine you’ve heard some horror stories. The property gets trashed, neighbours are disturbed and resentful, or the tenant simply refused to pay their rent. If you’re at the beginning stages of tenant selection, we recommend looking out for a few red flags, which can save you from headaches down the road.

1 Low Income

Does your tenant have enough income to cover rent? Your goal is for consistent rental income. A general rule of thumb: you don’t want to see rent take up more than 25-35% of a person’s income.

Students are unique to this situation, in that they are earning little to no income. In this case, you may suggest someone like a parent to co-sign.

2 Unemployed

How will the tenant cover rent? Everyone can go through periods of unemployment, however it should give you some pause if they have no means of covering the rent.

3 Bad Credit

Why is that? Ask the prospective tenant about it. Perhaps they have gone through bad times and are on the other side of things. It doesn’t always have to be a deal breaker.

4 Debt

How much? Assess how much debt they have and their ability to carry it plus rent.

5 Inconsistent work history

Do they jump from job to job? While it could be they are sampling various career paths before finding the right fit, it may also be that the tenant cannot hold a job down for too long. Speak with them about this.

6 Incomplete Application

Why were they not willing to answer reasonable questions? This is a red flag as it’s suggestive of laziness or trying to hide something.

7 High maintenance

Are they demanding from the beginning? This could be reflective of a challenging future relationship.

8 Want to move in immediately

What’s the rush? It’s not necessarily a bad thing; they might be eager to settle into their new home. Determine the urgency. Were they kicked out of their last place?

9 Previous eviction(s)

Was it from significant property damage or consistently late payments? Getting evicted is serious. Learn about what happened from the previous landlord.