The Single Most Expensive Mistake Landlords Make (And How to Avoid It)
By Three Eights Estates | St. Charles & West St. Louis County Property Management
Owning rental property is a smart investment. However, many new and even seasoned investors make a critical, costly mistake that erodes their profits: they underestimate the true value of expert tenant placement and screening.
You’ve likely heard the common advice: “The first three months of tenancy determine the rest of the lease.” While true, your financial success is actually determined long before the tenant moves in. It’s determined by the rigor of your screening process.
Here’s why poor screening is the most expensive mistake you can make, and how Three Eights Estates ensures every tenant decision protects your bottom line.
The Cost of a Bad Tenant: It’s More Than Just Missed Rent
The moment you place the wrong tenant, you introduce hidden, compounding costs that dwarf your monthly management fee savings:
Hidden Cost: Financial impact.
Physical Damage: Excessive wear-and-tear or deliberate damage exceeding the security deposit.
Legal Fees & Vacancy: The combined cost of filing for eviction, court fees, and the 6–8 weeks the unit sits vacant while the eviction is processed.
Lost Rent: Every day a unit is vacant is 100% lost income.
Higher Turnover: Bad tenants are quick to leave or are forced out, forcing you to pay for new cleaning, repairs, and marketing fees.
In short, a bad tenant can cost a landlord anywhere from $5,000 to $10,000 when factoring in legal costs, damage, and lost rent. This single mistake can wipe out a year's worth of profit.
How Three Eights Estates Turns Screening Into Profit Protection
At Three Eights Estates, our screening process is not a formality—it is our primary mechanism for protecting your investment. We go far beyond the basics to ensure we place a responsible resident.
1. The 3rd Party Deep Dive
We use specialized third-party screening services that provide an independent, objective review of every adult applicant (18+) for the following factors:
Credit Profile: We look past just the score to analyze debt-to-income ratios and credit history, ensuring the applicant is financially stable and responsible.
Criminal Records & Sex Offender Registry: Non-negotiable safety checks for all parties.
Eviction Filings: We check civil records for past eviction history, which is the single strongest predictor of future eviction behavior.
2. The Income and Employment Verification
We don't just take an applicant's word for their income. We verify:
Proof of Income: We require documentation that confirms the applicant has a stable income, typically requiring verifiable income of 3x the monthly rent.
Employment Verification: We verify the current employer to confirm tenure and current status.
3. The Tenant Warranty: Our Confidence, Your Peace of Mind
We are so confident in our screening process that we back it with a tangible guarantee:
If, during the first six months of a lease we manage, the tenant must be evicted or stops paying rent, we will place a new tenant for a fraction of the new leasing fee.
This warranty is more than a policy; it’s a direct financial assurance of the quality of our initial screening work.
Ready to Make Landlord'ing Truly Easy?
Don't let the anxiety of bad tenancy undermine your financial goals. By choosing an experienced, local partner like Three Eights Estates, you eliminate the most expensive risk inherent in property ownership.
We handle the stress of screening, leasing, maintenance, and rent collection, allowing you to enjoy the passive income you deserve.
Review our full range of services and transparent fees: 888-estates.com
Contact us directly to discuss your property: 314-680-7058