The fact is, about 30% of tenants are problematic. They move a lot more than average. They are evicted, they are requested to move, and their lease is not renewed. If 30% are problematic, and they move twice as often as a solid renter, that is 60% of the renters that you see seem like they do not qualify to live in your rental.
Solid renters do not move unless they have to. Typically it is because of their jobs, a shoddy apartment or crime in their current location, moving up to the next level of housing, or a landlord that does not maintain the property. It is expensive to move. Tenants do not like to move.
If you look at past addresses on a credit report, you can see how many addresses the tenants have lived in over the past several years. If it is more than two addresses in five years, you have a potential problem on your hands.
Never rely on the most recent landlord’s assessment of the tenant. A problem tenant may get a glowing reference, just to save the current landlord an eviction expense. Always call the current owner of the property where the tenant said they live. The owners name can be found on the tax records of the property. It should be the same address as on the credit report.
If you are using the application information to contact the past landlord, you may be contacting a relative of the applicant, not the land owner. That is a typical ‘trick’ of problem tenants. Always contact the owner of the address on the credit report, which is what a solid screening service does.
A fact that I have pointed out often is this. The average credit score of a renter is 658. It is proven true with my own complex applicants, with an almost identical number. Any tenant with less than a 658 credit score is below average.
If you settle for below average tenants, and you have at least an average location, you are cheating yourself of profitability.
Are you a qualified renter? How often do you move? As a landlord, have you ever wondered this?