Let’s face it; no one wants to have a vacant property. There are times when property owners need to fill a vacancy right away. Whether is because of financial hardship or they are leaving the country for an important business trip, a landlord may pressure you into putting the first person that shows interest, its important to know what the consequences are so property managers can advise their client
Top 3 Reasons Not To Rent to Unqualified Tenants
1. Damage to Property
This is the biggest risk that a landlord takes on when leasing a property out to an unqualified tenant. As a property manager, you know that it only take a few days for a tenant to wreak havoc to a property which can result in thousands of dollars in damage. The biggest identifier of a tenant who will likely damage a property is past judgments and poor rental history. If you see these red flags, be sure to let the investor know why you don’t recommend the tenant, even if they are going to ignore your advice.
2. Rent Not Being Paid On Time
Landlords expect that rent is paid on time and on a regular basis. Tenants with poor rental history or credit can be a sign that they are more likely to pay their rent late. In some cases, property managers or investors prefer this because they receive additional income from late fees, but this can cause the tenant to struggle even more because they now have to come up with that much more money each month which could eventually result in them not being able to come up with all the money leading to an eviction.
3. Asking for Extension or Help to Pay Rent
Coinciding with timely rent payments, many unqualified tenants will often times request an extension to pay their rent. Whether its because they don’t get paid until Friday, their great uncle twice removed needed some extra money to pay their power bill, or the tenants car broke down, there will always be a reason that they cannot pay rent on time. This is not only irritating, but also time consuming because now you have to spend extra time following up with them and the landlord until rent is either paid or the tenant is evicted.
An unqualified tenant can be very costly. While there are some circumstances that do justify taking on the added risk, its important to disclose these risks so that the client can be prepared if things don’t work out.
September 19, 2013