Can They Be Trusted?

How to Tell If a Potential Tenant Could Be Trusted or Not

Happy tenants come with proper management

Let’s assume that you already conducted basic screening for potential tenants in your apartment building and everyone has filled out forms. Potential tenants have also submitted their financial information, given landlord references, and proved they can pay for the rent. Everything looks good so far but before you agree to accept tenants, you might want to take a closer look at their applications. Sometimes you may miss signs of a bad tenant simply because everything else looks good on paper. It is very important for Texas apartment owners and even Texas commercial real estate owners to not be blinded by the need to lease a space for money because one bad tenant can seriously ruin an opportunity for landlords to make money. They are also bad for general well-being. You need to dig deeper and find out if they have bad-tenant tendencies.

“Why do I need to fill up an application?” If this is the first thing a prospective tenant tells you when you hand over the application, this person is most likely someone who is close to you or just someone who does not like the paperwork. It is a bad idea to start the rental process by playing favorites and paying lip service to those who will not follow even your basic rules. Be wary of applicants who feel that they are above your basic rules; they will try to flout other rules and you will have a big problem. If you have any prospective tenants who whine about the application form, just say “It is my building and I say every applicant needs to fill up a form.”

• “My father (or any other relative) said that I had no need to go through the regular process.” You might wonder why someone will even tell you this especially if you do not know who the person is. There are many reasons why an applicant will say this and one of them is because they have something to hide or are looking for preferential treatment.  Again, it is good for everyone to know right off the bat that you have basic rules and you expect those rules to be followed. If you begin your tenancies by breaking some rules, you may have a hard time enforcing some rules later on. Besides, skipping the application form is simply the worst thing you can do since you may well miss out on crucial information about your tenants.

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  Who am I really renting to?

  “I used to live with my girlfriend, and I paid her the monthly rent.” While it is good that he paid the rent, this shows that his name was not on the lease. It isn't exactly a crime but you need to dig deeper and ask: “Did the apartment owner know he lived there?” “Why is he looking to rent in your place?” “Has he ever rented his own apartment?” “Does he have a restraining order filed by the girlfriend?” “Where did he get money to pay his share of the rent?”

It might seem like you are digging too deep into your prospective tenants’ lives, but you have every right to. You will be entrusting your investment and property to them so you might as well make sure they are good people.

If you or someone you know, is interested in investing in commercial real estate, feel free to contact me:

Allen J.-Texas Real Estate Broker www.TexasRealtyPros.com broker@texasrealtypros.com 832-305-7653