What Are The Best Strategies For Avoiding Bad Tenants?

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Renting out your property can be a profitable and rewarding experience—but only if you find the right tenants.

Renting out your property can be a profitable and rewarding experience—but only if you find the right tenants. One of the biggest challenges landlords face is dealing with tenants who cause problems, miss rent payments, or damage the property. That’s why avoiding bad tenants should be a top priority for any landlord, especially those managing their properties privately.

At For Sale By Home Owner, we help private landlords take control of their rental process with the right tools and guidance. Choosing the right tenant isn’t about luck—it’s about applying proven strategies that minimise risk and help you secure long-term, respectful renters.

Screen Every Applicant Thoroughly

One of the most effective strategies for avoiding bad tenants is to implement a thorough screening process. Never rely on first impressions alone. Always ask tenants to complete a formal application and include essential details such as employment history, rental history, references, and identification.

Then, verify everything. Contact previous landlords, call employers, and cross-check information. If a tenant avoids giving references or provides vague details, treat that as a red flag. A well-documented screening process is your first line of defence.

Run Background and Credit Checks

Tenant background checks are a must. A good credit report can indicate financial responsibility, while a poor one may reveal issues such as unpaid debts, defaults, or frequent missed payments. Similarly, a criminal background check can identify any legal issues that could pose a risk to your property or neighbours.

At For Sale By Home Owner, we encourage landlords to use online tools and services that provide instant access to background and credit reports. This step not only protects your property but also helps you make informed, objective decisions.

Set Clear Rental Criteria

Before you list your property, decide what standards applicants must meet. These might include minimum income levels, employment type, rental history length, or limits on the number of occupants. Being clear about your criteria helps filter out unqualified applicants early on.

List these requirements in your property advertisement. That way, you attract only those who are genuinely eligible—and you reduce time wasted on screening unsuitable tenants.

Trust Your Instincts—But Don’t Rely Solely on Them

Gut feelings are important, but they shouldn’t replace proper screening. If something feels “off” during an inspection or phone conversation, take it seriously. For example, if a tenant seems evasive, impatient, or overly aggressive during negotiations, those behaviours might continue after they move in.

Combine your instincts with documented evidence—this gives you a balanced and reliable assessment.

Request a Reasonable Bond and Advance Rent

Asking for a bond (usually four weeks’ rent) and two weeks of rent in advance is standard in Australia. If a tenant hesitates to pay this or negotiates to pay it later, proceed with caution. Responsible tenants expect to pay a bond and should have those funds ready.

Collecting these payments before the tenant moves in shows that you are serious and organised, which sets the tone for a professional relationship.

Use a Detailed Lease Agreement

A comprehensive lease agreement protects you from disputes and gives your tenant clear expectations from day one. Include rules about rent payments, property care, inspections, subletting, and notice periods. Spell everything out to avoid confusion later.

At For Sale By Home Owner, we recommend using lease templates that meet your state’s legal standards. These help landlords stay compliant while also covering their interests.

Final Thoughts

Avoiding bad tenants doesn’t happen by chance. It takes planning, attention to detail, and a willingness to follow through with screening and verification. From background checks to strong communication, each step plays a role in helping you protect your property and income.

With the right strategy—and support from For Sale By Home Owner—private landlords can confidently manage their rental properties without the need for an agent. Take control, stay informed, and choose tenants who will treat your property with care and respect.

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