Are you a little bit too trusting when it comes to tenant screening for your Los Angeles rental property?
Many rental property owners are so eager to get a tenant placed in their rental that they’ll glance at a credit score and little else when they’re evaluating applications and screening potential residents. But rental fraud is on the rise, things are not always what they seem, and screening laws in California have created a situation where intensive, data-driven screening is absolutely essential.
You have to know what the red flags are in a rental application, otherwise your property is at risk.
At Earnest Homes, we are constantly screening applications and choosing tenants based on consistent and objective rental criteria. We know when something doesn’t look right and we know how to follow up to get the real information that we need to make smart screening decisions.
Here’s what you need to know.
Overview of Red Flags:
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Aggressive Applicants and Shady Behavior
We don’t like it when tenants are pushy or overly aggressive when it comes to their applications and their desire (or sometimes demands) to move into the property. When a tenant is overly eager or insisting that they move in within 24 hours, we see a big red flag. This desperation sometimes means that they are facing eviction or they don’t want us to spend too much time digging into their background. Tenants may offer to pay in cash in order to move in right away. They might beg you for the keys as soon as they see the place because of some dramatic story. Avoid this and follow your normal screening process.
Equally suspicious is the tenant who is evasive. They won’t want to consent to a background check, or they’ll have their own documentation that they want you to look at instead of your screening data. They won’t return calls about questions you might have on their application, or they’ll refuse to provide information on current and former landlords. This is a red flag because it feels like they’re hiding something.
Tenants Trying to Pay Many Months in Advance
Another red flag is a tenant who wants to pay three or six months upfront. While this may seem like a great way to collect rental funds early and to ensure they’re going to be good tenants, it can actually be a disaster waiting to happen. Just because the tenants have the money now does not mean they’ll have the money for rent once that period has ended. When they pay four months in advance, what happens at month five? They might not have rent, and they might be offended that you’re expecting it given that they paid you so much money in advance.
Accept the security deposit and the first month’s rent. Screen their income and credit and verify their employment so you know they can afford the rent over the course of the entire lease agreement. Getting the rent in advance almost always means it’s the only rent you’re going to get.
Prior Evictions in Screening Reports
It’s not that we’re unsympathetic to tenants who have been evicted before. If there’s an eviction from 10 years ago and the tenant has since established a solid rental history with good landlord references and recurring income, there’s no reason to believe this tenant is eager to be evicted again.
But if there are recent evictions or a series of evictions, we see that as a huge red flag.
Here’s why.
It’s actually very difficult to get evicted, especially in California. There are multiple ways to avoid it. Not just by catching up with the rent, but by talking to landlords or property managers and exiting the lease agreement when paying the rent becomes impossible. Eviction means there was not only nonpayment of rent, but also a complete breakdown in communication and cooperation between the tenant and the landlord. It is almost always a last resort and if a tenant reaches the point where there’s no other way out of the lease and an eviction is inevitable, something went very wrong during that tenancy.
We check national eviction databases. We look carefully at rental history. These details can be far more useful than a credit score.
Incomplete Applications or Glaring Inconsistencies
Here are some of the red flags we see with rental applications, before we even begin screening:
- Incomplete applications. Tenants don’t want to answer questions, or they refuse to provide contact information for employers and former landlords.
- Incorrect applications. When we contact a landlord reference and the number is disconnected or the email address is no good, we wonder why. Sometimes, a tenant will provide contact information for a personal friend or a family member instead of the reference we need to talk to.
- Inconsistent information. When a tenant lists prior addresses on the application that do not match the data we collect through credit and screening reports, we have to do further investigating.
False information and a resistance to transparency and background checks leave us feeling like this is not going to be the best tenant for your Los Angeles rental property.
Green Flags and What to Look For
The things we love to see as property managers in Los Angeles screening applications are:
- Complete applications.
- Signed releases that allow us to conduct background checks.
- Current contact information for references and employers.
- Verifiable backup documents that demonstrate income.
- Willingness to communicate.
We like to see a sense of urgency that doesn’t translate into immediate demands. We like to see a spirit of collaboration and consistency. When tenants complete the application as instructed, pay the application fee, and wait for an approval before signing the lease and asking about move-in funds and lease expectations, we know we’re off to a great start.
Screening is an important part of your work as a landlord. Don’t rush it and don’t miss the red flags and the warnings along the way. We can help you place a qualified and responsible tenant. Contact us at Earnest Homes.
