​How to avoid bad tenants? - 5 + 1 steps which can help


Every owner’s nightmare is a non-paying or problematic tenant moving into their apartment.

Unfortunately, there is no 100% guarantee to filter out bad tenants, but there are some steps to help you screen the candidates.

1. Aim at a little higher price range

The first step is to determine and target the correct market. It is not worth saving the money on not providing a fully furnished, equipped apartment to a future tenant, when by this we may reach a more reliable long-term client.

2. Ask for references

Although in Hungary this has not yet become a tradition like in Western countries, owners can ask the tenant candidate to somehow convince them on being the best choice. This could be a reference from a previous owner or a former employer's certificate.

3. Deposit (Security deposit)

Never sign- off with a tenant who does not want to pay a deposit.

We can say, that it is an established custom in Hungary that the homeowners ask for two months deposit but in some cases even a month plus deposit may prove the tenants reliability.

4. Good rental agreement

The law provides flexibility in the parties’ responsibilities, which should be clarified before signing the lease. Do not allow the tenant to put all the responsibility and burden on you. A well-written contract can discourage a tenant, of whom you would only have a problem with in the future.

5.  Experience

A personal conversation reveals many things. If a man knows what questions to ask, it can soon be acknowledged, that the person sitting in front of them is not the best.

In this area, a property management company has a huge advantage, since they negotiate on dozens of contracts monthly.

+1 strict collection

A good tenant can become problematic as well, if the owner does not deal monthly with the home affairs, “less-good” apartment can be kept under control with proper attention.

In particular, the payment of rent and utilities should continuously be under attention, in which a professional property management can be a huge help.

Of course, a reliable tenant passes all of the above without any problems, but it is still helpful, especially for the owners to avoid a greater chance of trouble, even if it happens 1 out of 100 cases.

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