Landlord: How to Conduct Tenant Reference Checks

Posted by Teresa on February 24, 2011 under Landlord Tips, Tenant Screening & Background Checks | icon: commentBe the First to Comment

tenantscreeningblog.comTenant screening is a several-step process. It begins with the lease application, where you obtain the lease applicant’s signature to run a background and credit check. It ends with phone calls and other verifications to check employers, previous landlords and other references listed by the tenant.

In between is the professional tenant background check, which should include:

  • SSN Validation
  • OFAC/Patriot Act Search
  • Evictions
  • Bankruptcies
  • Liens & Judgments
  • Criminal Records Search
  • Sex offender Search
  • Credit Check
  • Name and Address Validation

Skipping any of these necessary steps is usually a mistake – just ask landlords who have! You might be tempted to forget about calling previous landlords if the credit check comes out clean. You might be tempted to skip the tenant background screening if the applicant tells you up front that he had a drug conviction five years ago. When tenant applicants are so honest up front, they must have nothing else to hide, right? Maybe. Maybe not.

When your gut tells you someone is honest and deserves a chance, don’t listen! Do your due diligence and find out for sure if they can be trusted to live in your rental property, take care of it properly, and pay rent on time every single month.

Conducting due diligence on a potential tenant takes a little time and effort on your part. Experienced landlords will tell you to listen for clues when you’re talking to references and former landlords to determine whether you need to dig any further.

  • Clue #1: Former landlord says that applicant was never any trouble and paid rent on time. Would happily rent to them again and again.
  • Ask: Why are they moving? How long have you owned the property? How do you spell your name? What is the legal address of the rental property?
  • Double-Check: Tax records to make sure the person you are talking to is indeed the owner of the property in question. Potential tenants have friends pose as landlords. How do you know you’re talking to the landlord? Hint: When calling the number, ask “how do you know John Doe?”
  • Clue #2: Employer says applicant was never any trouble, makes enough money to cover rent and is still gainfully employed.
  • Ask: What is your name and position at the company? Ask even if the name is on the application in front of you. Potential tenants have friends pose as supervisors.
  • Double-Check: Google the company name, address, phone number. Call the business and ask for the person you were speaking to – don’t just call the number you were given.
  • Clue #3: Tenant applicant cannot provide paystubs.
  • Ask: For W2s or tax returns. If you don’t get them, move on to the next applicant.

Verifying tenant references is as important as formal tenant screening. Don’t base important decisions on your gut. Verify, then trust!

Tags: , , ,

home top