Renters with a checkered past may be well beyond their high-maintenance years. Even those with an eviction on their record could become some of your favorite tenants, provided they have specific qualifications showing they’ve resolved their drama and addressed the reason they were evicted:
They made amends.
If the applicant provides documentation to support a paid-in-full settlement with the evicting landlord, consider the record expunged, even if it still remains on their credit history. More than likely, if the tenant has made the effort to settle any disputes and pay any outstanding claims, the landlord has been remiss in not removing the negative credit report.
They are otherwise credit-worthy.
Late or missing credit card payments highlight a pattern of delinquency. Look for late or missed payments; if they aren’t there, it’s worth talking to the applicant about the eviction and getting their side of the story.
They are willing to pay more.
Responsible renters will understand the risk you’re taking in letting them sign a lease after an eviction. Ask for a larger security deposit to cover your risk, and gauge their reaction with a keen eye: acceptance and humility are a good sign, while righteous indignation is a sign of conflict to come.
They have positive (landlord) references.
A potential renter always needs good references, but don’t be afraid to ask specifically for landlord references in cases of eviction. If every other previous landlord gives the renter high marks, there’s a better chance that they’ll live up to their lease agreement at your property.
They have a co-signer.
It’s best if the applicant offers a co-signer up front, but if you have to ask about one, again, gauge their reaction. If the potential renter is caught completely off-guard by your request, it may be best to move on.
They answer your questions honestly.
A future tenant will be forthcoming about why they were evicted, what they’ve done to make amends, what they learned from the experience, and why it won’t happen again.
If you’d rather take the risk—and the guesswork—out of the rental equation, Class A Management has experts in risk mitigation and can protect your investment portfolio from bad renters. Call us today at 817-295-5959 or send us an e-mail to info@classamgmt.com.