Ultimate List of Tenant Red Flags Every Investor Should Know

As someone who's been knee-deep in the real estate industry for years, I can tell you that property management is no walk in the park. A considerable part of your success hinges on the kind of tenants you have. Identifying the ideal tenant isn't just about intuition; it requires meticulous screening and an eye for red flags.

In today's post, we're diving deep into those red flags. Understanding these warning signs is your first line of defense against a myriad of problems that can turn your investment into a money pit. Let's jump in!

Financial Red Flags

1. Poor Credit Score

A credit score significantly below 650 should raise an eyebrow. This number is a glimpse into an applicant's financial responsibility—or lack thereof.

2. Insufficient Income

One rule of thumb is to look for tenants whose income is at least three times the monthly rent. Less than this is a gamble you don't want to take.

3. Inconsistent Employment

A resume that looks like a patchwork quilt of jobs is a red flag. Employment instability often equates to financial instability.

4. Refusal to Pay Security Deposit

No security deposit? No deal. A tenant unwilling to secure the property upfront may be a future problem.

5. Past Evictions

An eviction history is like a neon sign blinking, "Proceed with Caution!"

Background & Legal Red Flags

1. Criminal Record

Each case is unique, but violent or serious offenses generally indicate that you should keep looking.

2. Previous Lawsuits with Landlords

If a tenant has had legal issues with past landlords, chances are you might be next.

3. Unverifiable Information

If you find yourself down a rabbit hole trying to verify an applicant's information, consider it a red flag.

Application & Interaction Red Flags

1. Incomplete Application

A half-filled application is a half-hearted attempt. Incomplete information often means there's something to hide.

2. Pushy About Quick Move-In

While eagerness can be a good sign, desperation is not. An insistent rush to move in could be covering up other issues.

3. Negotiates Rent Before Viewing

A tenant more interested in price than the property probably won't take good care of your investment.

4. Poor Current Living Conditions

How a tenant maintains their current home is a preview of how they'll treat yours.

5. Bad References

Former landlords and references can offer you a glimpse into your future. Listen to them.

Behavioral Red Flags

1. Unresponsiveness

Failure to reply in a timely manner to calls or messages can indicate future communication problems.

2. Late to Viewing Appointment

Being late once can be an accident. Being habitually late is a red flag.

3. Argumentative or Overly Inquisitive

A confrontational or overly curious tenant might prove to be more trouble than they're worth.

4. Reluctance to Undergo Screening

Any resistance to standard background checks should have you questioning what they're trying to hide.

In your tenant screening process, you'll want to quantify these red flags according to your own risk tolerance and the specifics of your property. Every landlord has their own set of criteria, but generally speaking, more red flags should prompt more caution. This careful approach ensures not only your success but contributes to responsible real estate investing overall.

Your portfolio of properties is not just an investment in real estate; it's an investment in people. Take your time to scrutinize potential tenants carefully. Remember, a vacant property is better than one filled with a problematic tenant. Be the smart investor who not only grows wealth but contributes to responsible real estate investing.


Happy investing, and may your properties be forever filled with dream tenants!