Spotting Trouble Before It Starts: 5 Early Warning Signs of a Bad Tenant

Finding a good tenant is crucial for any landlord. A responsible tenant who pays rent on time and cares for the property brings peace of mind and protects your investment. Unfortunately, not every tenant turns out to be ideal. A bad tenant can cause financial loss, property damage, legal troubles, and many sleepless nights. Recognising the early warning signs of a potentially problematic tenant can save you significant time, money, and stress.

1. Lack of Respect

Late Arrivals or No Show: Late for viewings or no show can translate into similar behaviour as a tenant. Unexcused late arrivals or missed appointments can be a sign of irresponsibility and unreliability.
Disrespectful Behaviour: Pay attention to how the applicant interacts with you and the property during the viewing. Rude or dismissive behaviour, excessive negativity about the property or current tenants, or disregard for safety rules can all be red flags.
Unrealistic Expectations: Tenants who are overly aggressive, demanding, nitpicky about minor details in the property, or exhibit a sense of entitlement might be difficult to deal with, leading to unnecessary complaints and potential disputes.

2. Inconsistent or False Information

Honesty and transparency are essential traits for a trustworthy tenant. Inconsistent or false information during viewing and interview can be a major red flag. Warning signs include:

Discrepancies in Information Provided: Inconsistencies between the information provided by the tenant and what you can verify (such as employment details or rental history) suggest dishonesty.
Incomplete Information: A tenant who provides incomplete information or refuses to provide certain information may be trying to hide something.
False Documents: Falsified documents, such as fake IDs, or business registration documents indicate that the tenant is willing to deceive you. This is often the tip of the iceberg which can lead to bigger problems down the road.

3. Move-In on Short Notice

A tenant's request to move-in on short notice, such as within a week's time, leaving little to no time to prepare the tenancy agreement and complete all the administration work, is often a major red flag. Possible reasons include:

Eviction by Current Landlord: When a tenant is evicted by his current landlord, he will have little options but to quickly find an alternative accommodation. Naturally, the tenant will request to move in as soon as possible, often neglecting the time needed to prepare the tenancy agreement, or negotiate on the terms of lease.
Default on Rent: A tenant who defaults on rent on his current lease will want to move out of his current location as quickly as possible to avoid dealing with his current landlord. Tenants like this will often agree to any terms and conditions you set out on the lease, but have no intention to honour them at all.

Whenever you come across a tenant who is looking to move in urgently, it is imperative that you find out the underlying reasons for the short move-in notice. Sometimes you may have to dig deeper as the tenant may not reveal the real reason immediately.

4. Placing Good Faith Deposit Using Cheque or Cash

Today, there are much more convenient online digital payment methods. There is absolutely no reason for a tenant to insist on less convenient payment methods, and can be a major red flag, if insisted by the tenant. Warning signs when placing good faith deposit include:

Issuing a Cheque: Cheque is an extremely inconvenient way of making day-to-day payments. The recipient of the cheque is required to deposit the cheque at a bank and wait a few days for the cheque to be cleared.
Coupled with an extremely short move-in notice, the tenant could be hoping to move into the property before the cheque is processed by the bank and bounced. By the time you are informed about the bounced cheque, the tenant would have already moved into your property. At this point, the tenant has defaulted on rent and you would have to invoke the eviction procedure.
Even if the cheque clears successfully, do you really want to trouble yourself by having to chase after the tenant each month for rent, and having to physically collect the cheque and deposit it at a bank?
Cash Payment: When a tenant places a good faith deposit in cash, especially when the amount is significant, it becomes a source of suspicion. Why would anyone carry a significant amount of cash? Wouldn't it be easier to make a digital payment?
For the tenant to insist on making a security deposit or rental payment using cash, his bank account may be frozen or terminated by the bank. This usually happens when the tenant either owes the bank money or uses his bank account for illicit activities, resulting in the termination of his bank account. Either way, this is the type of tenant you do not want to deal with in the long run.
Even if the tenant turns out to be legitimate, you have already set a precedent of accepting payment via cash. In future, the tenant may very well expect you to continue accepting payment in cash. Similar to accepting payment in the form of a cheque, receiving payment in cash will inevitably create long-term inconvenience for you too.

5. Listen to Your Gut Feeling

Sometimes, despite everything seems in order, a bad feeling about a tenant lingers. Trust your instincts. If a tenant makes you feel uncomfortable or raises red flags that can't be easily explained, it might be wise to err on the side of caution and move on to the next prospective tenant.

Conclusion

The above are just warning signs, and not all tenants exhibiting one or more of these traits will be bad tenants. However, being aware of these early warning signs of a bad tenant and conducting thorough screening is crucial for landlords to protect their investment and ensure a smooth rental experience by significantly increasing the chances of finding a reliable and responsible tenant.