Maintaining a Bad Tenants List: The Complete Guide

In this article, I will share what the bad tenants list are and the government laws you must follow. Did you know, according to the National Multifamily Housing Council, only 8 out of 10 tenants pay their rent on time, which can be very frustrating for you as a Landlord.

Here sophisticated landlords take precautions by using a good tenant screening service that is available online to check the credit, income, rental, eviction history, and criminal background of that applicant tenant. 

With this, they can make sure that they are allowing the right person to stay on their property who will pay rent on time and follow all the protocols. But this type of private data comes with rules and regulations governed by the Fair Credit Reporting Act. You can not misuse them.

When you have found negative data about an applicant and know that person is not a good tenant, you will try to avoid him. This list is also known as the Do not rent to List or Bad Tenants List.

  • But the privacy laws banned the maintenance of a Do not rent list that could create discrimination against tenants, even if your intent is just to protect your property and save yourself from landlord abuse.

Rent reporting rewards the majority of tenants who pay on time and minimizes losses from the renters who might be put on a Do not rent list if these were legal. 

Although you can report negative and positive experiences you have and that will be stored as a resource. The rental industry has a resource for landlords to share tenant reviews and rental property records with one another so that they can reduce income loss and improve the overall rental market by just quality tenants.

The Best Tenant Screening Services

How to Report bad tenant

There are many services available online with compliance with the FCRA based on price, service, and speed. From this research, you can choose the best to help you protect your investment by just paying a little free. Some of them are listed below.

  • RentPrep
  • E-Renter
  • BetterNOI
  • RealPage
  • First Advantage

There is one that most people use to report is the Landlord Credit Bureau. It allows landlords to report both good and bad tenant habits. Using this agency, you can report positive and negative information to a database. 

By doing that, you can reduce the risk of rental income loss by up to 40 percent, which will stabilize your revenue. So the net result will become more profitable, and you can succeed without maintaining illegal Bad tenants list.

A good list of positive and negative tenant reviews is necessary to identify and reward good tenants and not so to the bad tenant, but you can’t maintain a list of them. You know who they are but can’t put it on paper.

How to Avoid Bad Tenants?

How to Avoid Bad Tenants

Use the tenant screening services to find the best tenant for your property. The record combines rent history with an additional verified report. It makes it easier for Landlords to identify good Tenants who always pay rent on time. Whatever data you need, all are available on those platforms.

Please Note

I am not a legal expert. Before you make any move, please consult with a certified expert so that you don’t face any legal trouble with it. This small article is only for educational purposes.

Last Words

So you should not create and maintain a bad tenant list or a do not rent list, but you can know who to rent and who to not according to their history, credit report, and payment habits.

As a landlord, you want to maximize your earnings and reduce potential losses that may hinder your future goals. Many tenants forcefully occupy properties and do not leave without any police involvement. And some people always make excuses, why they can’t pay on time. 

If you stay strong and follow the rental agreement that you have made with them, your business will prosper. If you buy their stories, no matter whether they are real you may face other tenants that will start to pay late and whom you will not be able to handle over time. So cut the tree at the base level and protect your property.

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