Renting out a property is not only a way to earn extra income, but also a big challenge, especially when you come across a dishonest tenant. The problem with such people can be serious: improper behavior, late payments or property damage are just some of the problems that can arise from such a situation. Sometimes tenants are able to hide their intentions, which means that landlords often find out about problems only after the fact, when the situation is already complicated.
Problems related to dishonest tenants
Dishonest tenants can cause many problems for property owners. Arrears – Unpaid rent is the most common problem that landlords face. If left unaddressed, it can lead to a complicated and time-consuming eviction. Property damage – Tenants who do not respect the rented space can cause significant losses. Repairs can be expensive and time-consuming. Behavior contrary to the agreement – Sometimes tenants break the rules set out in the lease, which leads to conflicts and legal problems. Fraud – There are cases where tenants present false documents or information to gain access to the rented property.
How to avoid problems with dishonest tenants?
To minimize the risk of renting to people who may prove problematic, it’s worth implementing a few proven strategies. Here are five key steps to minimize the risk of dishonest tenants:
- Thorough background checks – Before you commit to renting, it’s crucial to conduct thorough background checks on potential tenants. This step is essential to minimize the risk of renting to people who could cause trouble. Here’s how to conduct an effective background check:
Gather information about rental history
The first step should be to gather information about the potential tenant’s past rental history. Ask about previous places they’ve lived and why they decided to move. People with a long rental history may be more trustworthy, so it’s worth checking how long they’ve lived in their previous properties. Ask for contact information from previous landlords or managers to see how they rate the person as a tenant. It’s important to get information about their timely rent payments, the condition of the rental property, and the tenant’s general behavior.
References
It’s also good practice to ask for references. You can ask the tenant for contact information for their employer or someone who can vouch for their credibility. Checking references can provide valuable information about the character and responsibility of the prospective tenant. Make sure the references come from people who know the tenant well enough to give an unbiased opinion.
Financial verification
Assessing the tenant’s financial situation is a key element of verification. Ask for documents confirming the source of income, such as earnings certificates, employment contracts, bank statements or PITs. This will allow you to assess whether the tenant is able to pay rent regularly. It is worth paying attention to the stability of employment – people who change jobs frequently or are on temporary contracts may be less reliable.
Checking the Credit Information Bureau (BIK)
Before you decide to rent, it is also worth checking the potential tenant at the Credit Information Bureau (BIK) and the National Debt Register. Such a check will allow you to obtain information about any debts and credit history of the tenant. People who have difficulty settling their financial obligations may be more vulnerable to problems paying rent.
Thorough verification of the tenant is a key step that can protect you from future problems. Take the time to collect as much information as possible to make sure you are choosing the right person to rent to. If you feel you need support in this process, consider using the services of professional detective companies such as Hussars-77, which offer comprehensive assistance in tenant verification and other rental-related matters. - Interview – Meeting a potential tenant in person is a great way to get to know them better. Ask questions about their lifestyle, career plans, and expectations for the lease. Pay attention to how they respond—whether they’re honest and forthcoming or avoiding certain questions. You can also ask about their reasons for renting—whether this is their first time or they’re looking for a long-term place. Make sure the tenant is aware of the lease terms and expectations for behavior in the space. This meeting will help you assess whether they’ll be a good fit for you.
- Tenancy agreement – A carefully worded tenancy agreement is key to avoiding many problems. It should include all the important information, such as the duration of the tenancy, the amount of rent, the rules regarding deposits, the obligations of the landlord and tenant, as well as regulations regarding the use of the property. It is also worth including clauses regarding termination of the contract and the consequences for breaking it. Make sure that the contract is signed by both parties before the tenancy begins. Clear and detailed provisions can help avoid misunderstandings and will be crucial in the event of any disputes.
- Deposit – A deposit is a form of security that can significantly reduce the financial risk associated with renting. It usually amounts to one to three months’ rent and should be paid before signing the lease. The purpose of the deposit is to cover any potential losses, such as property damage or unpaid rent. It is important to clearly specify the terms of the deposit refund in the lease, so that the tenant knows what situations may lead to its partial or complete retention. This will avoid misunderstandings after the lease ends.
- Using professional services – If you are new to renting properties or do not feel confident in the tenant verification process, consider using the services of professional detective companies such as Hussars-77. Our company offers comprehensive support in the field of tenant verification, as well as assistance in the event of problems related to eviction. We operate with full discretion and professionalism, which allows for a thorough examination of potential tenants and effective resolution of any conflicts. It is worth investing in professional services to ensure that the decisions made are based on solid foundations. Check out our offer: Tenant eviction .
By taking the right precautions, you can significantly reduce the risk of renting your property to people who may cause you problems. It is worth remembering that prevention is better than cure – and we at Hussars-77 are here to help you through this process.