20 Mar 10 Rental Property Red Flags: Signs of a Bad Tenant

Rental property red flags and signs of a bad tenant can quickly turn a profitable investment into a financial headache. As a landlord in St. Louis, recognizing these warning signs early is essential to protecting your property and ensuring reliable rental income. From incomplete applications to a history of evictions, certain behaviors can indicate potential issues. This guide walks you through the most common warning signs, helping you make informed decisions and avoid problematic renters.

10 Signs of a Bad Tenant

Recognizing these signs early in the process can prevent costly mistakes. Here’s what to watch for:

1. Incomplete or Inaccurate Rental Applications

A well-qualified tenant should have no problem filling out an application completely and accurately. Missing information, inconsistencies, or false details can indicate dishonesty. Always verify the information they provide.

2. Poor Credit History

A tenant’s credit history gives insight into their financial responsibility. While a lower credit score doesn’t always mean they’ll be a problem, excessive late payments, collections, or bankruptcies point to financial instability worth taking seriously.

3. History of Evictions

If a prospective tenant has been evicted in the past, it’s a major red flag. While some situations may have valid explanations, multiple evictions suggest a pattern of issues with paying rent or following lease agreements. Eviction records are one of the strongest warning signs a landlord can get, and shouldn’t be ignored.

4. Unstable Employment or Insufficient Income

Tenants should have a steady income to cover rent. A general rule is that monthly earnings should be at least three times the rent. Frequent job changes or a lack of income verification could be a warning sign.

5. Poor Landlord References

Always check past rental history. If a previous landlord hesitates to provide feedback or gives a negative review, proceed with caution. Key questions to ask:

• Did they pay rent on time?
• Did they follow lease terms?
• Was the property left in good condition?

6. Criminal History

While minor offenses may not be dealbreakers, a record of serious crimes, especially those related to property damage or violence, could put your rental at risk. A background check can help you make an informed decision.

One important caveat: the U.S. Department of Housing and Urban Development’s April 2016 guidance says a blanket ban on anyone with any conviction record can violate the Fair Housing Act, because that kind of policy falls hardest on protected groups. Use an individualized assessment instead. Weigh the nature and severity of the offense, how long ago it happened, and what the applicant has done since, and don’t count arrests that never led to a conviction.

7. Frequent Moves

If a tenant has changed addresses frequently within a short time, it could indicate instability. Long-term renters help reduce turnover costs and keep your property occupied.

8. Bad Attitude or Pushy Behavior

A tenant who is rude, overly aggressive, or demanding during the application process may be difficult to work with later. If they pressure you to skip screening steps or lower rent, they may be hiding something.

9. Unwillingness to Pay a Security Deposit or Application Fee

Responsible renters should be financially prepared for move-in costs. If an applicant tries to negotiate the security deposit or avoids paying an application fee, it could indicate financial struggles.

10. Signs of Dishonesty

Providing fake references, altered pay stubs, or avoiding direct questions are major warning signs. Trust your instincts. If something doesn’t seem right, it probably isn’t.

Own a rental in the St. Louis area?

You just read the red flags. We screen for every one of them, on every application, for the properties we manage: tenant screening, leasing, rent collection, 24/7 maintenance, and owner accounting reviewed by an independent CPA firm. Get a free rental analysis or call (314) 802-0797.

How to Avoid Problem Tenants in St. Louis, MO

Now that you know what to watch for, here’s how to avoid it in the first place:

1. Have a Thorough Screening Process

A detailed screening process helps filter out unqualified applicants. Your screening should include:

• A rental application
• Credit and background checks
• Employment and income verification
• Rental history and landlord references

2. Set Clear Rental Criteria

Establish non-negotiable criteria for tenants, such as:

• Minimum credit score requirement
• Income-to-rent ratio
• No prior evictions
• Good rental references

Put your criteria in writing and apply them the same way to every applicant. Consistency is your best protection against a fair-housing complaint.

3. Use a Legally Sound Lease Agreement

A well-written lease agreement protects you and your property. Ensure it covers:

• Rent amount and due date
• Late fees and penalties
• Maintenance responsibilities
• Pet policies
• Rules for subletting

Before anyone moves in, make sure the property itself is cleared to rent: the City of St. Louis requires an occupancy permit and inspection for rental units, and St. Louis County requires a rental license for properties in unincorporated areas.

4. Conduct In-Person Interviews

Meeting tenants in person allows you to assess their demeanor. If they seem evasive or defensive, treat that as a red flag too.

5. Require a Security Deposit and First Month’s Rent Upfront

Collecting these payments ensures the tenant has financial stability. Missouri law allows landlords to charge up to two months’ rent as a security deposit, and it must be returned or itemized within 30 days after the tenant moves out (RSMo 535.300).

6. Perform Regular Property Inspections

Regular inspections help identify lease violations or property damage early. Be sure to provide proper notice before entering the unit.

7. Work with a Property Management Company

If you don’t have time to handle tenant screening and property management, hiring professionals can help. Property managers are experienced at spotting these warning signs early and handling issues efficiently.

Final Thoughts

Recognizing rental property red flags and signs of a bad tenant can save you time, money, and stress. A strong screening process, clear rental criteria, and a legally sound lease agreement will help you secure reliable tenants and protect your investment.

Let Hermann London take the stress out of property management with expert tenant screening, legally sound lease agreements, and proactive maintenance solutions. Whether you’re looking to find reliable tenants, streamline rent collection, or protect your investment from potential risks, our dedicated team is here to handle every detail so you can enjoy the benefits of property ownership without the hassle.