Bad tenants are everywhere,whether you like it or not.
The thought of going to court to file a case against bad tenants is time consuming and costly, not to mention the stress you had to deal with. You could face legal ramification if you evict those bad tenants without considering the proper eviction procedures.
We’ve come up with 7 ways to avoid bad tenants that you need to know:
- Eligibility. As far as eligibility status is a concern, it is really important that you do some background check before signing contracts with tenants.
- Get a rental guarantor. Ask for someone to be a guarantor. For instance, the tenant fails to pay; the guarantor will be the one responsible for paying you up for the rental fee. The guarantor should be credible and trustworthy with official documents to prove his identity.
- References . If it’s your first time to meet the tenant, make sure to ask for references from his/her employer or previous landlord. Both employer and landlord could directly provide the information. It could be in a form of a letter or signed documents confirming that the tenant is credible and trustworthy.
- Double check legal documents. If they provide pay slips, bank statements, tenant reference letter, etc, make sure that you double check the authenticity of all these documents. The advance technology made it a lot easier for people to create fake documents.
- Document verification. As much as possible, ask the tenants to provide document verification. For instance, ask them to have their documents notarized. It might be a little complex but it will surely protect you and your business.
- Trust your Instinct. Closing a deal quickly is good when it comes to finding money but choosing the right tenant is not something that you should be in a hurry for. Beforehand, make sure to assess your gut feeling, based on what the tenant said and showed you. It’s better to be safe than sorry.
- Professional’s Advice – if you are new to the rental business make sure to seek professional’s advice before you let the tenant sign a rental contract. Do not ever let a tenant sign any rental agreement yet if you are unsure.