25 Sep 5 Red Flags when Showing Rentals
A significant part of property management includes showing available rental properties to prospective tenants. Over the years, I’ve picked up on some general “red flags” that I look out for when interacting with these prospects. There are of course always exceptions, but by and large, steering clear of these red flags will help you avoid a bad tenant situation.
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Red Flag #1: Late to Showing Appointment
You’ve got your ads running, the house is clean, yard is cut, and it’s ready to show. You get a call from an interested prospective renter and schedule an appointment to show the home to them later that afternoon at 3:30. Like a good property manager, you arrive 10 minutes early so that you can turn all the lights on, open the blinds, and be standing on the porch when they arrive. It’s now 3:30 and they should be driving up any minute. Then it’s 3:40… 3:45… 4:00. They finally call, apologizing, and let you know they’ll be another 15 minutes. You figure you’ve already drove out and waited this long; what’s a little extra time, right? They finally show up at 4:30 – an hour late.
Time is valuable and nothing is more frustrating than when a prospect is late to an appointment. It demonstrates that they have no respect for others, which begs to question whether or not they will have respect for the house you are going to rent them. As a general rule, I only wait 15 minutes past an appointment time, and then I leave. If they get there after I’ve left and call me to ask if I can come back, my answer is always, “Sorry, I have another appointment.”
Red Flag #2: Lousy Appearance
The next red flag is how a prospect looks when they show up. I’m not talking about their racial or ethnic appears as that would be discrimination and should have absolutely no bearing on your approval decision. What I’m referring to is how they are dressed and conduct themselves during the showing. A showing appointment is like a job interview: you are the employer and the prospect is the potential employee wanting a job. You wouldn’t show up for an interview in a pair of sweat pants, your hair a mess, and using profanity. As representative of the landlord, you’re deciding whom to give exclusive control of an asset worth hundreds of thousands of dollars. If a potential tenant doesn’t care to present him or herself in a professional manner, they probably don’t need to be renting a house from you. There’s always exceptions to every rule, but why take a chance if you don’t have to?
Red Flag #3: False Information on Application
I can’t stress this one enough. The moment you find out that an applicant lied about something on their application, deny them immediately. Having a lease contract is great, but a contract is only as good as the people who enter into it. If an applicant has already given you reason to distrust them before they even get approved for the rental, don’t trust them with your client’s rental property.
Red Flag #4: Difficulty paying application fee or security deposit
Most property management companies charge a small application fee of anywhere from $25 to $50 to cover the cost of the background screening and credit report. If the potential tenant voices any objection to this fee, or tries to negotiate a lower amount, steer clear. I mean, come on. How are they going to afford monthly rent in the hundreds or thousands of dollars per month if they can’t even handle paying a small application fee?
The same goes for security deposits. While some property management companies differ, most require the entire security deposit be paid in advance at the time a lease is signed. If the applicant requests to pay it after move in, or break it up in payments, you should see a little red flag waiving above their head. Think about it. Are you going to let them also break up their monthly rent and pay it in multiple payments? If they can’t swing paying the deposit up front, that tells you that they have almost no savings which means they will instantly go delinquent when the first unexpected life circumstance hits. Do yourself and a favor and stick to a requirement that the entire deposit be paid in advance.
Red Flag #5: Changing the story with a pet
Does this sound familiar?
PROSPECT: “Hi, I’m interested in your 3 Bed home on Main St.”
YOU: “Great! That’s a lovely home with 1,850 square feet and monthly rent of $1,400.”
PROSPECT: “I’m definitely interested. When can I schedule to see it?”
YOU: “I’d be happy to arrange a showing appointment with you. Before I do however, do you have any pets?”
PROSPECT: “Oh, yes, I have a Yellow Lab.”
YOU: “I’m sorry, but this is a no pet property unfortunately.”
PROSPECT: “Oh, that’s okay. I have a friend that will take the dog.”
If you believe for a minute that they are giving Fido away to “a friend”, I have a bridge to sell you. I will guarantee you that as soon as they get the keys to the home, the dog is coming in with them. In today’s culture dogs aren’t pets, they’re family, and a renter isn’t going to give it away any more than a parent is going to give a child away. Although there certainly are days that I wouldn’t mind giving a couple of my kids away.
So that wraps up the five most common red flags that I’ve encountered. Be on the lookout for these when you’re out there working with prospective renters. Do you have any other red flag suggestions? Leave a comment below
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