Top 5 Signs a Tenant Might Be Risky

By Nikko | March 18, 2025

Introduction

Finding the perfect tenant is every landlord’s dream, but not all applicants are as great as they seem on paper. Ignoring red flags during the tenant screening process can lead to late payments, property damage, and legal headaches.

If you’re a landlord in Hamilton or Niagara, understanding these warning signs can save you from future trouble. This guide highlights the top 5 signs a tenant might be risky and provides tips on how to protect your investment.

Inconsistent or Incomplete Application

✅ Why It’s a Red Flag:

  • Inconsistent information about employment history, previous addresses, or income suggests the applicant might be hiding something.
  • Leaving sections blank or refusing to provide necessary documents can indicate dishonesty or unreliability.

🛠️ How to Handle It:

  • Verify all information through employer and landlord references.
  • Consider using tenant screening platforms like SingleKey or Naborly for thorough background checks.

💡 Resource: Welcome Home Tenant Screening

Poor Credit History or Low Credit Score

✅ Why It’s a Red Flag:

  • A low credit score or history of missed payments can indicate financial instability.
  • Credit issues may suggest that the tenant struggles with managing finances, increasing the risk of late rent payments.

🛠️ How to Handle It:

  • Request a credit report as part of your tenant screening process.
  • Look for consistent patterns of late payments or high debt.
  • Consider co-signers or a higher security deposit if the applicant’s credit is borderline.

Unstable Employment or Insufficient Income

✅ Why It’s a Red Flag:

  • A tenant with a history of changing jobs frequently may struggle with consistent income.
  • If their income doesn’t meet the standard 30% rule (rent should not exceed 30% of monthly income), they may face challenges in making timely payments.

🛠️ How to Handle It:

  • Verify employment history and current income through pay stubs or a letter from their employer.
  • Confirm that they have been employed for a reasonable period and have consistent income.

History of Late Payments or Evictions

✅ Why It’s a Red Flag:

  • A tenant with a history of late payments or prior evictions poses a high risk.
  • Frequent payment delays can lead to cash flow issues and potential eviction procedures.

🛠️ How to Handle It:

  • Contact previous landlords to inquire about payment history and tenant behavior.
  • Ask if the tenant caused any property damage or had unresolved disputes.

💡 Resource: Landlord and Tenant Board (LTB) Ontario

Criminal Record or Questionable References

✅ Why It’s a Red Flag:

  • A criminal history may suggest potential issues that could put other tenants or the property at risk.
  • References that are vague, inconsistent, or unwilling to provide details could mean the applicant is hiding negative information.

🛠️ How to Handle It:

  • Consider a criminal background check as part of your screening process.
  • Verify references thoroughly—speak to at least two previous landlords to get a better picture of the tenant’s behavior.

Conclusion

Tenant screening isn’t just about filling a unit—it’s about protecting your investment. Ignoring these warning signs can lead to costly problems down the road. By conducting thorough background checks, verifying references, and staying vigilant, you can avoid risky tenants and secure reliable, long-term renters.

If you’re a landlord in Hamilton or Niagara and want to ensure a stress-free property management experience, consider working with a professional property management company to handle tenant screening the right way.

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