Every landlord hopes for a smooth rental experience: a qualified tenant pays rent on time, takes care of the property, and eventually moves out while leaving the home in good condition.
Unfortunately, that isn't always what happens.
I recently received a call from a landlord who was managing his rental property himself. His tenant had stopped paying rent, leaving the landlord unsure about what to do next. Eventually, the landlord had to evict the tenant.
When I went to inspect the property after the eviction, I saw exactly why landlords need to take tenant screening seriously.
The house had been severely damaged and filled with junk. Even worse, the kitchen—which the landlord said had been brand new when the tenant moved in—was essentially destroyed.
The cabinets, granite countertops, and appliances all had to be replaced.
For a landlord, this is more than an inconvenience. It's a potentially enormous financial loss, along with lost rental income, repair costs, legal expenses, and the time required to deal with an eviction.
So, how can landlords reduce the risk of ending up with a tenant like this?
1. Screen Every Tenant Thoroughly
The first and most important step is a comprehensive tenant screening process.
Before approving a rental application, landlords should carefully verify:
Income: Does the applicant actually earn enough to afford the rent?
Employment: Is the applicant's employment legitimate and current?
Residence history: Where has the applicant lived previously, and what can previous landlords say about them?
Credit history: Does the applicant have a history of paying financial obligations on time?
Rental history: Have there been previous evictions, unpaid balances, or serious lease violations?
Application information: Does everything the applicant provided check out?
A tenant screening process should be more than simply pulling a credit report. The goal is to verify that the person applying for your property is actually who they claim to be and that the information on the application is accurate.
2. Learn How to Spot Rental Application Fraud
One of the biggest risks landlords face is application fraud.
Applicants who intend to deceive a landlord may provide false employment information, altered documents, fake income information, or misleading rental history.
This is why simply collecting an application isn't enough.
Landlords need to know how to identify inconsistencies and verify the information they're given.
For example, if an applicant's stated income doesn't match the documentation provided, or the information on the application conflicts with what you discover during verification, that's a warning sign that deserves further investigation.
Application fraud can be difficult to identify if you don't have an established screening process. That's one reason experienced property managers can be valuable: they've often reviewed hundreds or thousands of rental applications and know what inconsistencies to look for.
3. Require Appropriate Renters Insurance
Another way landlords can reduce their exposure to tenant-related damage is by requiring renters insurance.
Renters insurance can provide coverage for certain types of losses or damage, depending on the tenant's policy and the circumstances of the claim.
Landlords should understand exactly what their lease requires, what coverage the tenant must carry, and what their own landlord or property insurance covers.
Don't assume renters insurance will automatically pay for every type of property damage. Review the policy requirements carefully and make sure tenants maintain the required coverage throughout the lease.
4. Don't Underestimate the Cost of a Bad Tenant
One of the biggest mistakes landlords can make is focusing only on avoiding vacancy.
It can be tempting to approve an applicant quickly because you don't want the property sitting empty.
But putting the wrong tenant into a rental property can be far more expensive than a few weeks of vacancy.
A problematic tenant can potentially lead to:
Unpaid rent
Eviction costs
Legal expenses
Property damage
Excessive cleaning and junk removal
Lost rental income
Extended vacancy while repairs are completed
Significant stress and time for the landlord
In this particular case, the damage went far beyond normal wear and tear. A relatively new kitchen had to be completely gutted and rebuilt.
That is the kind of expense that can turn an otherwise profitable rental property into a major financial headache.
5. Consider Professional Property Management
Another option for landlords who don't want to handle tenant screening, rent collection, maintenance, and evictions themselves is professional property management.
Experienced property managers have established processes for screening applicants, identifying potential red flags, handling lease enforcement, and dealing with difficult tenant situations.
No screening process can guarantee that a tenant will never cause problems. However, a thorough and consistent process can help reduce the risk.
In our experience, evictions are extremely rare when the right screening procedures are followed.
The Best Way to Avoid a Nightmare Tenant
The lesson from this property is simple: tenant selection matters.
Once a problem tenant has moved into your property, your options can become much more difficult and expensive. The better strategy is to reduce the risk before handing over the keys.
Start with thorough tenant screening. Verify income, employment, rental history, residence history, and credit. Most importantly, learn how to identify and investigate potential application fraud.
Require appropriate renters insurance and make sure your lease and insurance policies provide the protections you need.
And if you don't have the time, experience, or systems to manage the process yourself, consider hiring a professional property management company.
A good tenant can make owning rental property relatively straightforward. The wrong tenant can turn it into a nightmare.
The best time to prevent a bad tenancy is before the tenant moves in.
