With evictions hitting a ten-year high in Orange County last year, it's more important than ever to find and keep quality tenants.
To help protect your investment, here are three major red flags to watch for with tenant applications.
1. Inconsistent Employment History
If a prospective tenant has frequent job changes or gaps in their employment, it can be a major red flag. This inconsistency might indicate financial instability, which can lead to difficulties in paying rent on time.
A good tenant usually has a stable job and a steady income. Look for people who have been in their current job for a while or who can provide references from previous employers.
If someone keeps changing jobs, especially in the same industry, it raises concerns about their reliability and commitment. A big concern is that they may not be able to pay their rent on time.
At PMI Orange County, we conduct thorough background checks that include verifying employment and income stability. This not only protects your investment but also streamlines the rental approval process by providing clear insights into each applicant's financial reliability.
2. Poor Credit History
A poor credit history can signal problems. If a tenant's score is low or they have many accounts in collections, it's important to look deeper. Consider their situation, but keep in mind that credit history is still a key indicator of how they manage their finances.
Look for people who can explain why they have bad credit. Sometimes it's worth taking a chance on someone who's trying to fix their credit. But be careful; if someone has a history of bad credit, they might cause problems in the future.
PMI Orange County takes the guesswork out of this process by providing comprehensive credit assessments, giving you a clearer picture of your applicants' financial history. This thorough approach not only minimizes risks but also speeds up the tenant approval process by ensuring you're making informed decisions.
3. Unverifiable References
If a prospective tenant provides references that are difficult or impossible to verify, that's a big red flag. If they list a friend or relative as a previous landlord, it's important to approach that with skepticism. Friends and family are often biased, and their feedback might not provide an accurate portrayal of the tenant's rental history.
In a strong tenant screening, check references from past landlords. Look for a pattern of good reviews. If a tenant resists giving references, look elsewhere for successful tenant applications.
PMI Orange County excels in this area by ensuring that every reference is thoroughly checked and validated. This not only gives you peace of mind but also helps you to make faster, more accurate decisions in the rental approval process.
Streamline Your Tenant Applications Today
Screening tenant applications doesn't have to be a daunting task. By keeping an eye out for these red flags -- employment inconsistencies, poor credit history, and unverifiable references -- you can protect your investment and find quality tenants. Partnering with a full-service real estate asset management company like PMI Orange County ensures you have the resources and expertise to conduct thorough screenings effectively.
We're part of a franchise with over 20 years of experience, and we're ready to take your property to the next level. Contact us for a free rental analysis to get started!
