The Burning Question: How to Identify a Problematic Tenant?
Renting out your apartment is often a difficult decision. How do you find a tenant you don't have to worry about and can be confident that your apartment is in good hands? Signs of a problematic tenant can be recognized with the help of Ly Johanson, a real estate agent at Uus Maa Five Stars office.
Johanson notes that problematic tenants are like an inevitability that apartment owners repeatedly have to deal with. "The most common problem is, of course, tenants falling behind on rent or utility payments," he notes. Unfortunately, other issues also occur. "For example, a tenant may damage or vandalize property and constantly violate the rules in force in the building," Johanson lists some examples.
"Often the owner himself cannot notice details during tenant interviews that a broker would be able to spot and could thus exclude a candidate from the outset," Johanson explains.
According to the broker, cases where other lease terms are violated are also not rare. "Third parties are housed in the premises, the apartment is not kept in sufficient condition, or the tenant wants to move out at short notice," Johanson points out further situations that cause problems for landlords.
Background checks provide much important information
Background checks can be conducted on tenants from several public sources, and the Kinnisvara24.ee portal is a helpful tool. Based on a personal identification number, brokers can see both payment defaults, tax debts, driver's license validity, related companies, and court rulings, which may become important when concluding a lease agreement.
Of course, when conducting background checks, it is also necessary to consider the timing of the incidents. In some cases, it may have been a one-time human error or youthful foolishness, so there is no need to immediately exclude a tenant, but this small red flag should still keep the landlord on alert.
Kinnisvara24.ee offers a background check service in cooperation with taust.ee and it complies with all data protection requirements under the law. A background check costs 1.20 euros.
You can research social media and ask for a reference from the employer
"At the same time, you can research the interested party's social media and search for his name in groups that discuss debtors," Johanson suggests.
Additionally, it is advisable to ask the tenant for a reference letter from their employer or previous landlord. Brokers also have candidates fill out a detailed questionnaire containing many necessary questions for data collection and background investigation.
Tensions with other residents
If a bad tenant does end up in the apartment, it can become a very major source of concern according to Johanson. "Starting with the fact that it is not easy to get rid of a non-paying tenant, and if property is damaged, you have to start repairs before you can take on a new tenant. Not to mention that a tenant who violates building rules can create additional tensions between the owner and other residents," Johanson notes.
Warning signs are visible at the first meeting
When talking about warning signs, Johanson points out that if a tenant already starts negotiating the lease price and wants to pay the deposit in installments, it is worth being cautious. "If a person does not have sufficient reserves to pay the necessary amounts upfront, then there can very easily be difficulties with timely payment of rent and utility costs," he explains.
Similarly, according to the broker, elementary communication skills and politeness are a warning sign. "If the prospective tenant comes to view the apartment and behaves disrespectfully toward the owner or broker, then you cannot expect that everything will work out in the future and the attitude will change."
"An apartment owner who does not deal with tenant searches on a daily basis should consider involving a broker. Brokers have experience and based on that they are able to select the best candidates and exclude worse options among possible candidates," Johanson recommends.
