Here are the major warnings:
Warning #1: It is too easy.
Most tenants will look, inspect and find fault with one or two, or maybe more things. That’s normal. Anything else is abnormal.
Warning#2: He is almost anxious to fill out your paper work
This is a bluff.
Here is a dirty little secret deadbeats know, but a lot of landlords probably don’t realize.
A lot of landlords will not check out the deadbeats thoroughly enough.
Deadbeats know it’s a numbers game. Sooner or later they will hit on a landlord who won’t do the credit check.
Warning #3: He wants to know how much experience you’ve had as a landlord.
Odd. Most tenants don’t care. They want a nice place at a nice price.
He is trying to see if you are a professional or just a Mom from a Mom and Pop operation that you’re doing on the side to earn some extra money.
Folks, please listen to this. This is important.
If you have only one property,you’re still a professional.
Conduct yourself in a business-like way. That’s a way of doing things. That’s an attitude.
It has very little to do with how many properties you actually have and you’re actually managing.
If a deadbeat senses you are inexperienced, he will try to take advantage of you. And it won’t be pretty.
Warning #4: Trouble with the Utility Company
A deadbeat will imply he won’t be able to transfer the electricity over to his account on the phone.
He may have to go down to the electric company and do that in person.
In our town, you only do that if you’re opening up a new account. If you’ve done business with them in the past, you can handle most transactions over the phone.
Conclusion: He has not paid his electric bills in the past for whatever reason, and they may have turned off the electricity.
Warning #5: No credit history
What’s almost as bad as bad credit? No credit.
You have to ask yourself why a person who has been out of school for a few years or longer does not have any credit at all.
We all do business with stores, car dealers, utility companies, doctors, insurance, etc. There should be some sort of paper trail.
If there isn’t, simply tell him you need one. You need to see how he pays his bills. Unless he’s Tarzan living in a jungle tree house, he’ll have bills. Hopefully, they’re paid ones.
Warning #6: He seems to understand when you call to tell him you’re turning him down
That’s because he knows it was a long shot.
You were expecting an argument, right? You thought he would get mad maybe? Not always.
In this case, you call and tell him there was a problem with the credit history. Nothing came up.
You tell him, there may have been a problem with the credit reporting and if he thinks there’s a problem you can give him the number of the credit bureau and he can call them and straighten everything out.
Then he can call you back.
His answer: “I don’t want to bother.”
Maybe we all know why…
Conclusion. No matter how badly you need to rent it, or how badly you want to rent it, don’t rent it to him.
Having an empty unit will be much easier than getting this deadbeat out once he’s in.