Tenant Check Before Signing the Lease
What Landlords Should Look Out For
Choosing the right tenant is one of the most important decisions a landlord can make. A poor tenant selection can lead to serious financial consequences that may jeopardize your entire investment. After all, when you're renting out a property as a long-term investment, your goal is to generate steady positive cash flow and increase the value of the asset. In this article, we’ll walk through key steps and best practices landlords should follow to assess the creditworthiness and reliability of potential tenants.
Why Thorough Tenant Screening Is Essential
Tenant screening is often underestimated, yet it plays a crucial role. A tenant who doesn’t pay rent or damages the property can quickly incur high costs that might affect your investment for years to come (and evicting a tenant is never a quick fix). That’s why a solid credit check shouldn't be an afterthought—it should be a core part of your rental process.
Step 1: The Tenant Self-Disclosure Form
A detailed tenant self-disclosure (Selbstauskunft) is the foundation of any credit assessment. Many landlords—especially private ones—are hesitant to request too much information, fearing it might be overstepping.But as a landlord, you're fully entitled to ask for comprehensive details from a potential tenant to ensure their reliability.
Key Documents to Request in the Self-Disclosure
Proof of income
To verify the tenant’s ability to pay rent.ID card or passport
For identity verification.Credit reports
Such as a SCHUFA report or a tenant certificate (Mieterpass).
Step 2: Additional Supporting Documents
In addition to the basics, you can request further documentation to get a fuller picture of the tenant. These may include:
Employment contract
Provides insight into job security and income stability.Bank statements or account balance confirmations
Can demonstrate additional financial resilience.Previous landlord reference
Offers a view of the tenant’s rental history—though this should be evaluated with some caution.
Step 3: Trust Your Instincts
Beyond paperwork, your personal impression matters. Meet the potential tenant and trust your instincts. A conversation—and possibly a visit to their current residence—can provide helpful clues.Another tip: If the applicant arrives by car, consider walking them back to their vehicle. Observing how they care for their own belongings may give you a hint as to how they’ll treat your property.
Step 4: Spotting Red Flags
Be alert for potential warning signs that could indicate future issues. Examples include:
Rushed behavior
A tenant eager to move in immediately without asking questions may be hiding something. Of course, this varies by location—what’s normal in Berlin might raise red flags in Gelsenkirchen.Showy displays of wealth
Flashy cars or expensive watches can sometimes mask financial trouble. Again, trust your gut—but don’t let surface impressions stop you from digging deeper.
Step 5: Use Digital Tools and Services
In today’s digital age, there are many tools that can support your tenant screening process. In addition to traditional credit checks via services like SCHUFA, specialized platforms offer access to more extensive data.Examples of helpful tools:
Tenant screening platforms & tenant certificates
These offer in-depth credit assessments from a range of data sources. (You'll find a recommended provider linked here.)Social media checks
A quick look at a tenant’s online presence can offer further insight into their lifestyle and behavior.
A Mix of Facts and Trusting Your Gut
At some point in property management, tenant screening becomes essential. So, what’s the takeaway?Choosing the right tenant requires a balance of solid credit checks and personal judgment. Landlords should weigh both formal documentation and the personal impression. This combination helps reduce the risk of renting to a problematic tenant—and protects the long-term value of your investment.
