It’s not great theater so you don’t need to go and get it yourself, but the film’s primary insight is relevant to real estate investors: if you’re renting a property, especially a high-end one, then check out the tenant before signing a lease. Housing laws aren’t consistent across the nation, but one thing that they tend to have in common is that they’re written to protect the tenant, not the landlord. If you manage to get into a bad situation, it’s tough to get out of (not to mention time-consuming and expensive).
When renting a lower-end property you’ll find a credit check to be less useful. Many, if not most, candidates applying for this range of housing will have poor or no credit. You’ll have to use some other methods, like getting references from previous landlords and employers.
And most importantly, you’ll learn something about the applicants when you meet them. And yes – you do need to meet them; don’t rely on your realtor to close the deal for you. Do they get to the appointment on time? Do they seem like folks that will treat you and your property with respect? In the end you will have to listen to your instincts. It’s stressful having a vacant property and you’ll be in a hurry to fill it, but the stress of a vacancy is nothing compared to the stress of trying to dispose of a nightmare tenant. Renting to the wrong person is an expensive mistake to make.
