Yes we know, as much as rental properties seem like great investments, sometimes it can be a pain in the butt… Modern Times Homes has been buying, selling, renovating and renting Illinois properties for many years; and we came across all kinds of tenants. Some of them were good but some were trouble makers.
First of all, when finding tenants for your rental properties, do the right screening. Choose people who are trustworthy. When we screen tenants, we have certain requirements:
- Credit score of minimum 625
- No criminal background
- No bankruptcy or eviction in the past 4 years
- Income of minimum 3 x monthly rent
If someone who applied for your rental property has a credit score below 600, you already should know that person is not doing so well on his regular monthly payments. If he can’t pay his credit card payment of $100 on time, how will he find money to pay rent on time? Good question to ask yourself. Find the reason why the credit score is so low before you will proceed with the application.We understand that this could be a reason for a bad relationship or the incidents from the past but it is good to find out the reason. If the person with that low of a score has many delinquent accounts, this should make you think. This should be the first red flag when screening tenants.
We all have been young, and we all have some kind of history from the past. Some have good but some have bad. That’s why when screening we shouldn’t look past 4 years of background. Everyone deserves second choices. If someone had bankruptcy seven years ago but since that time fixed their history and is doing well that shouldn’t worry us much.
Verifying your tenant income is very important. You should ask every applicant for his last two pay stubs and make sure his income is 3 x monthly rent or more before you approve them. If the applicant just started a new job, ask for an offer letter. It is very important to have proof of income.
That’s why Modern Times Homes never wastes time, instead when a prospect calls for information regarding rental property, we give them our requirements over the phone. We don’t want to waste the prospect’s money or time as well. Be strict with your decisions; it will help you avoid not responsible tenants.
Let’s say you did the right screening and your tenant doesn’t pay on time; What to do? Well, life happens, and you never know what could be the reason. Try to talk to your tenant and find out what his situation is. Maybe he needs help and you will be able to help him by finding financial help. Try to face the situation at ease and give the tenant different options. Maybe all he would need would be a roommate or a cheaper rental that you could help him find.
Sometimes tenants would ghost on us and stop responding to our calls and texts; what to do then? Well, your only option would be evicting the tenant. It could be a long, painful process but it is doable, and you should do it instead of letting someone live on your property for free. Evictions cost money, but either way, you are losing money while keeping a tenant that doesn’t pay his rent.
If you are tired of dealing with bad tenants give us a call at 847-242-2212. We buy properties with tenants as well as destroyed properties. We pay cash and we are able to close as soon as two weeks.