One of your primary goals as a landlord should be to avoid tenants who might be squatters . Squatters are individuals who refuse to pay rent or at times even to leave the property, often causing damage in the process. By recognizing some warning signs early in the leasing process, you can avoid the anxiety and financial burden of dealing with squatters. In this post, we’ll explore five warning signs that can assist you identify potential squatters before it’s too late.
A Squatters: What Is It?
Someone who occupies a property without permission is referred to as a squatter. Squatters pay no rent, compared with conventional tenants, and they often won’t leave once they’ve moved in. Because evicting squatters is a drawn-out legal process that can result in major financial loss owing to property damage and unpaid rent, this can cause landlords a lot of headaches.
Squatters generally have no intention of paying rent and can take benefit of landlord-tenant rules to stay in the property for an extended period of duration, but larger renters could face monetary problems and cease paying rent as a result of real difficulties. Landlords must use cautious while reviewing applicants to avoid renting to squatters.
Warning Signs to Look for Throughout Tenant Screening
It’s crucial to adhere to a rigorous screening procedure to avoid renting out your property to squatters. When assessing prospective tenants, keeping a look out for these five warning symbols:
1. Incomplete Rental Applications
Incomplete or unclear rental applications are frequently indications that a potential tenant may be a squatter. Clear information regarding the applicant’s name, employment, and prior renting history should be included on the application. If the applicant is reluctant or unable to finish the application properly, continue with care.
Common signs of a suspicious application include:
- Missing street numbers or unclear addresses
- Vague answers about their employment history
- Lack of details on previous residences or employers
A valid applicant should be able to give a detailed account of their last two years’ residences and employment. An applicant may have something to conceal if they are reluctant to finish the application or abstain from giving comprehensive responses.
Advice: Don’t be afraid to request more information or evidence of support if you encounter an application that is confusing. Consider the applicant’s rejection as a warning sign.
2. Lack of References
Academic and personal references are crucial for verifying a tenant’s background. At least two personal and two professional references must be submitted of a valid tenant. The applicant may be concealing something if they are unable to produce references from prior jobs or landlords.
An applicant may have a history of evictions or unstable employment, for instance, if they are unwilling to provide contact information for prior employers or landlords.
Advice: Consider it carefully if the applicant refuses to provide references, particularly from prior employers or landlords. To confirm the integrity of references, you can also get in line them by email directly.
3. Excessive Criticism of the Property
When you show a potential tenant the rental property, watch how they respond to the area. Problem renters or squatters frequently provide harsh criticism about the property in a bid to raise rent or delay signing the lease. Although minor flaws tend to occur amongst tenants, if the applicant is very critical of everything, such as the cleanliness, lighting, or flooring, it may indicate that they try to create an excuse for not signing an agreement to lease.
They might be dissatisfied with the flooring type, the condition of the carpets, or even the brightness of the light bulbs. They might be simply seeking to avoid committing to the lease if they seem unusually concerned with these details rather than the living conditions.
Advice: During property viewings, notice the applicant’s attitude. Instead of fretting over minor issues, real tenants will be more interested in the property’s location, features, and rental terms.
4. Inability to Sign a Lease
Reluctance to sign the lease is another common sign of a potential squatters. You ought to use care if an applicant is reluctant to sign a lease and insists on moving in first, then signing the lease a week or so later. A legitimate tenant would typically observe the terms and limitations stated in the lease and have no trouble signing it before moving in.
Because they want to occupy the property without being bound by law, squatters frequently attempt to postpone signing the lease. It is a serious red flag if they attempt to influence the timeframe of the lease agreement or if they fail to sign before moving in.
Advice: Always require that the lease be signed before the tenant moves into the property. If they refuse to sign the lease upfront, reconsider renting to them.
5. Without Showing Employment and Residency Credentials
Verifying the applicant’s work and housing history is one of the most essential tenant screening processes. A genuine tenant will say where they have lived and worked throughout the two years preceding this one. An applicant may be hiding their real background if they are evasive or unwilling to provide this information.
You should be wary, for example, if an applicant provides you an address that is not real or refuses to give you the employer’s information. In order to avoid detection, some squatters may make up residence data or work history.
Advice: Always verify residency and work record. To confirm the information supplied, get in contact with the applicant’s prior landlords and employer. It is obvious that you should not rent to them if the information doesn’t add up.
Additional Advice for Landlords
Here are some more steps landlords can take to avoid leasing to squatters in addition to the warning signs previously mentioned:
Run a Comprehensive Background Check: be certain that you conduct a thorough background check on all of your applicants. Credit checks, criminal history checks, and eviction records need to be a component of this. It makes more sense to find another tenant if the applicant has an arrest record or a history of evictions.
Require a Security Deposit: In spite of offering insurance in the event that the tenant does damage to the property, a security deposit acts as a deterrent for squatters who might not be hesitant to give up the deposit by not making payments for rent.
Hire a Professional Realtor: If you’re not sure how you should go about tenant screening, think considering having a real estate agent without experience do it for you. Realtors may help you in finding trustworthy renters who will adhere to the conditions of the lease because they have experience screening possible tenants.
Follow Your Instincts: Don’t disregard your gut if something about a possible tenant looks strange. rejecting an applicant who raises concerns is preferable to having to deal with a squatter.
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Conclusion
There may be serious consequences from renting to the wrong individual, such as lost rent, property damage, and legal disputes. The risk of leasing to squatters can be substantially decreased by following to the mentioned guidelines. Always follow your gut, conduct thorough screenings, and pay attention to the warning indications. Keep in mind that safeguarding your property is of utmost importance, and that taking the required safety measures will help ensure that you lease to reliable and accountable tenants.
Never be afraid to seek the advice of a qualified real estate agent or lawyer to help you with the leasing process if you have any questions or concerns. Being proactive can help you keep your rental business profitable and hassle-free while avoid the nightmare of sitting tenants.