As a property manager in Massachusetts, thorough tenant screening is crucial to finding reliable renters who will care for your property and pay rent on time. However, some red flags can be easy to overlook. To protect your investment and avoid future issues, here are six tenant screening red flags you should never ignore when managing properties in Massachusetts.
1. Incomplete or Inconsistent Application Information
A well-filled-out application is a basic but essential step in tenant screening. If a prospective tenant leaves large sections of their application incomplete or provides inconsistent information (like mismatched addresses or conflicting employment details), this can be a major red flag. It may indicate an attempt to hide something, such as past evictions or unstable employment.
What to do: Ensure applications are filled out completely and double-check for inconsistencies by verifying their references, employment, and previous residences.
2. Eviction History
An eviction in a tenant’s past is one of the most obvious red flags. Massachusetts law is tenant-friendly, and evicting a problematic tenant can be a lengthy, complicated process. A tenant with a history of eviction may repeat those behaviors, leading to costly legal issues and potential damage to your property.
What to do: Run a thorough background check that includes eviction history. If the applicant has been evicted in the past, ask for details. There might be mitigating circumstances, but be cautious before proceeding.
3. Poor Credit Score or Financial Instability
A poor credit score or significant financial instability is a strong indication that the tenant might struggle to pay rent on time. Massachusetts is an expensive state to live in, and tenants must demonstrate they can handle the cost of rent along with their other financial obligations.
What to do: Set a minimum credit score requirement for applicants and verify that their income is sufficient to cover rent (typically 3x the monthly rent). You should also check for past bankruptcies, large amounts of debt, or recent defaults on loans.
4. Frequent Job Changes or Unstable Employment
Consistent and stable employment is a key indicator of a tenant’s ability to pay rent. If an applicant frequently switches jobs or cannot provide steady proof of employment, it could be a warning sign. This is especially relevant in cities like Boston, where the cost of living is high, and a stable income is critical.
What to do: Request proof of income, such as recent pay stubs or tax returns, and verify employment by contacting the listed employer. If the tenant is self-employed, ask for additional financial records or bank statements.
