How to Check Rental References like a Pro

If you're like most landlords, checking a tenant's rental references can be the most challenging part of screening tenants. Your calls go unanswered and the references you do get are vague, revealing little about a tenant's payment history. Yet if you skip this important step of the screening process, you run the risk of a bad tenancy which can cost you thousands in court fees and lost rental revenue. The truth is most landlords – even experienced ones – don't receive the rental references they need because of the following roadblocks:
- The previous landlord refuses to answer questions for fear of being sued
- The previous landlord's identity cannot be verified
- The previous landlord ignores your inquiry because there’s no incentive for them to respond. Landlords are busy people; Taking time away to respond to your questions means less time spent on managing their business and doing deals.
The secret to getting accurate and timely rental references like a pro depends on how you go about it.
Start by following these three steps:
1. Verify the Source
Always verify the source of each rental reference by doing an internet search of the phone number and address. Tenants with bad rental histories will often list names and numbers of friends or family members to pose as a former landlord, hoping you won't check them out. To verify the landlord listed actually owns the property, cross check the name listed on the application with the address shown in your County Tax Assessor's database. If the tenant lists a property management company, do an internet search to ensure that company exists and that the number on the application matches the number on its website. Be suspicious of people who offer too much information about the applicant, as this can be a red flag indicating that you are talking to someone who is personally related to the applicant.
2. Get Written Permission
Landlords are reluctant to give out tenant information without written consent, mainly because they don't want to get sued by their former tenants. Verbal requests over the phone are essentially ignored by both private landlords and property managers, because of privacy laws and the inappropriate wording of the questions asked. When possible, have your applicant sign a written consent either on your application or on a separate form allowing you access to their rental history. Submit your query for a rental reference in writing by email or fax. The former landlord or property manager, however, may reveal very little about the applicant and only provide answers to questions that can be verified by documentation.
3. Ask the Right Questions
Experienced landlords will not answer vague questions about a former tenant – questions that may violate a tenant's privacy or ones that violate State or Federal Fair Housing laws. For example, inquiring about an applicant's marital status, religious practices, mental stability or inviting landlords to share their personal opinions about an applicant is off limits. Most private landlords and property managers, however, will only answer questions that can be supported by documentation. Here are a few examples of specific questions you can ask:
- What was/is the applicant's rent amount?
- When did the applicant occupy the property and what was the length of stay?
- How many times did the applicant pay rent late and what were the dates?
- Did you issue any three day notices to the applicant and what were the reasons?
All these questions work because they are unbiased, specific, and can be verified and supported by documentation.
Your ability to collect rent is 99 percent dependent on how well you screen your tenant.
Unfortunately, the process of checking a tenant's rental references listed on the application can take as long as three to four days to complete. No wonder many landlords avoid doing this valuable step in tenant screening.
There is a better way for requesting landlord references that solves all of the above roadblocks. It's also a way to get faster responses for free from previous landlords that have been verified by Renter Inc. As a result, this takes away any fear of being sued.
RenterInc.com is a free website for landlords like you to access and share rental references that are fully compliant with privacy and Fair Housing laws. The website allows you to request a rental reference from a previous landlord within minutes. Renter Inc. verifies the property ownership of the previous landlord and allows that landlord to answer only Fair Housing approved/fact based questions. This information is then submitted online and made available for future landlords to access. There's also a great incentive for other landlords to respond to your reference request quickly; the faster they respond to your request, the more revenue they will receive for their quick submission.
Reduce your risk associated with a bad tenancy by joining RenterInc.com. Doing so can mean the difference between your rental making a profit or you ending up on the street.