Renting out residential real estate can be a lucrative venture, but it comes with its own set of challenges.
One of the biggest concerns for landlords is finding reliable tenants who will pay rent on time, take care of the property and respect the terms of the lease agreement. That makes it important to be vigilant and look out for red flags when screening potential renters.
1. Inconsistent rental history
When reviewing a potential renter’s rental history, inconsistencies can be a major red flag. If the applicant has a history of frequently moving from one place to another or has gaps in their rental history, it could indicate instability or difficulty in maintaining a long-term tenancy. Similarly, if the applicant has a past eviction, it is worthwhile to proceed with caution.
2. Poor credit history
A person’s credit history can provide valuable insight into their financial responsibility. A poor credit score or a history of late payments, defaults or bankruptcies may indicate that the applicant has a history of financial difficulties. While a less-than-perfect credit score does not necessarily disqualify someone from being a good tenant, it is necessary to consider this information in conjunction with other factors.
3. Lack of employment or income verification
Verifying a potential renter’s employment and income is a must in assessing their ability to afford the rent. If the applicant is unable or unwilling to provide adequate proof of income or employment, it could be a sign that they may have trouble meeting their financial obligations.
Property owners in Naples live in a town with one of the highest rental rates in the state, averaging $2,330 per month during 2023. While being a landlord has its benefits, choosing the wrong tenant can lead to headaches and potential legal trouble down the road.
