5 warning signs to help you avoid bad tenants

Introduction

At J&J Management, one question comes up frequently: how do we select our tenants to minimise the risk of non-payment or a poor rental experience? Choosing the right applicant is crucial to ensuring an optimal rental income and avoiding the potential pitfalls of property investment. In this article, we will discuss the five warning signs to consider when selecting your next tenant. These signs are essential to help you navigate the letting process and protect your property investment.

1. Insufficient income or financial instability: 

During the tenant selection process, it is crucial to assess their ability to pay the rent. We recommend carefully examining the details of their income, including its sources and amounts, as well as their ability to maintain financial stability over time. Traditionally, it was suggested that rent should not account for more than one third of total income. However, this rule may not always be realistic. Instead, we recommend that, after paying all expenses and rent, tenants (for example, a couple without children) should have at least 1200 euros left to cover their living costs. This approach ensures greater financial security for all parties involved. If their income seems slightly insufficient, do not hesitate to ask the applicants whether they can provide a guarantor.

2. Fake payslip:

Be wary of fake payslips. You would be surprised by the number of fake payslips we receive. Inconsistencies in dates, unrealistic amounts or striking discrepancies between net and gross salary can be revealing indicators. It is therefore important to check the financial information provided by applicants carefully to ensure that it is genuine! 

3. A bad feeling and inappropriate behaviour:

Sometimes, the most obvious signs are not written in black and white but are sensed during interactions with the applicant. If you notice that the applicant is trying to conclude the transaction quickly, appears impatient, prefers to pay in cash, does not ask relevant questions or behaves inappropriately, it is important to remain vigilant. These behaviours may be potential indicators of future problems. There is no magic formula for assessing this point; experience is essential. Pay attention to unusual or concerning behaviour that could raise suspicions about possible complications. However, we would like to draw your attention to the importance of avoiding discrimination. Acting on the basis of criteria such as skin colour, age or religion is not only morally reprehensible but also illegal. Discrimination is punishable by law and may result in legal proceedings. Make sure that your letting decisions are fair and based solely on legitimate and relevant criteria.

4. Lack of consistency: 

During viewings and in applications, it is essential that prospective tenants provide consistent information. For example, if an applicant mentions having 1 child during the viewing but suddenly states that they have 3 in their written application (on their payslip, for example), this could be a warning sign. Therefore, compare the information provided with your interactions to identify any inconsistency that could indicate an attempt to conceal information. 

5. Rental references: 

A thorough review of the applicant’s rental history is essential. Late payments, evictions or complaints from neighbours are all warning signs of a potentially problematic tenant. It is therefore crucial to conduct thorough background checks on applicants to ensure their reliability. We recommend checking whether the applicant is willing to provide the contact details of their previous landlord. If possible, contact the landlord to obtain information about the applicant’s behaviour as a tenant. An applicant’s refusal to provide this information may constitute a warning sign and warrant particular attention, even though they are entitled to refuse to disclose it.

Conclusion: 

The tenant selection process is a crucial stage in managing your property. At J&J Management, we understand the importance of choosing reliable tenants to minimise the risks of non-payment and disputes. By carefully considering the five warning signs we have presented, you can make informed decisions and protect your property investment.

We encourage you to pay particular attention to applicants’ financial stability by checking their income and assessing their ability to maintain a stable standard of living. Likewise, pay close attention to behaviour and interactions during viewings, as these can reveal subtle indications of a prospective tenant’s reliability.

Furthermore, do not underestimate the importance of checking previous rental references. Payment history and relationships with former landlords can provide valuable information about the tenant’s past behaviour.

By adopting a proactive and meticulous approach to the tenant selection process, you can reduce risks and ensure a positive rental experience for all parties involved. For professional and attentive management of your property, place your trust in J&J Management.