Checking References
Checking References
As a best business practice, checking applicant references should be considered one of the essential tenant screenings. Interviewing previous landlords and personal references are screenings that can be performed fairly easily and with minimal expense by a landlord. The information obtained through reference checking complements the information obtained from identity verification, employment verification, credit reports, public reports, and other background screenings. Contacting the current landlord may reveal an impending eviction or serious lease violations that could spell trouble for you.
Before conducting an interview it is helpful to prepare a worksheet listing questions to be asked. Being prepared with a script is professional, courteous, and efficient. It also helps to ensure all questions are asked and asked in the same manner with each reference. Answers to the questions can be recorded on the worksheet and serve as written documentation to be placed in the applicant’s file.
Rental History
A landlord wants stable, responsible tenants, ready and willing to pay rent as agreed, maintain property to acceptable standards, and conduct themselves as good neighbors. Do the applicant’s rental references characterize the applicant as meeting these qualities? It is generally held that past behaviors give indications of expected future behaviors. Rental behaviors are key to risk assessment. A current or former landlord can provide the type of information needed to assess
the risk. A brief interview with an applicant may indicate a good match between the housing needs of the applicant and the rental property of the landlord. Details of a year-long rental relationship with a prior landlord may tell a
different story.
Keep in mind that the landlord-tenant relationship is a contractual, business relationship. A lease agreement is legally enforceable with rights and obligations clearly defined for each party. Calling a prior landlord to determine whether the applicant fulfilled his lease obligations is a business safeguard, not an invasion of applicant privacy. During the application process, the applicant acknowledged and authorized permission to conduct verifications and screenings for consideration as a tenant. If the tenant has been a problem tenant there will likely be red flags that show up in other screenings. Due diligence will help uncover false or misleading information.
Some landlords are reluctant to contact former landlords thinking perhaps the landlord might give a glowing recommendation just to move a problem tenant out. The willingness and extent of a former landlord’s cooperation may be dependent upon the approach the inquiring landlord takes during the interview. Most landlords will extend the courtesy of honest answers to the questions being asked and appreciate the same consideration if they were to make a similar call in the future. It is a matter of good business.
Consider the length of the applicant’s rental history. If the applicant has been a renter for several years, try contacting the landlord previous to his current landlord. The renter has already moved on but his records and/or his reputation may be recalled and prove helpful. There is always the possibility that the applicant’s current situation is at the opposite extreme of the recent rental past. Changing markets, employment shifts, health considerations, or family matters can
drastically affect the ability of a tenant to meet his lease obligations. Make sure there is no rush to judgment without sufficient information and analysis of the current situation. Be equally sure that there is no unintentional
violation of fair housing laws by extending preference, privileges, or waivers of rental policies to certain individuals in certain circumstances. A policy of non-discrimination must apply to each and every applicant so that tenant
screenings are conducted in the same manner, in the same way for all applicants.
Some landlords may be reluctant to provide information even with the assurance that there is the applicant’s signed release of information. It may be personal reluctance or stated policy. At the least, a landlord or property manager should be able to confirm dates of tenancy, rental amounts, and security deposit amount. An important question that should be asked: “Would this tenant be welcomed back?” The answer or the manner in which the answer is given may say it all.
Applicants wanting to withhold rental history may try to use friends as landlord references or use false or misleading street addresses. Make sure that you are speaking with a valid and appropriate party to verify past rental history. Verifying the name of the owner and property address can usually be done using searchable online County records. Public directories can also be used to verify address information and phone numbers. Legitimate landlords will have knowledge of rental information that a “fake” landlord will not have.
Some applicants hope that a landlord will be too busy to check rental references and the applicant can slide by, avoiding a negative reference or notice of coming eviction. Since the references are an important source of information, make it a policy to always check.
There may be a request from an applicant that the current landlord not be contacted. Possibly the applicant has not yet given notice or doesn’t want the landlord to know he is looking. The applicant may think that the current landlord will give unfavorable information, which may or may not be justified. While the request is understandable, the landlord should adhere to his stated policies. If one exception is made, other exceptions might follow. However, the timing of the
decision to contact the current landlord could depend upon whether the applicant meets other qualification criteria. If the applicant fails to meet minimum criteria there is no need to continue the process. If the applicant meets criteria, the current landlord should be contacted. Any information obtained from the landlord interview would be analyzed with information obtained from other screening reports for final evaluation.
If your rental policies allow pets, ask the landlord about his pet policies. Did the tenant comply with pet policies? Were any complaints received regarding the pet? If the tenant had a dog, can the landlord confirm the breed of dog?
A customized rental references worksheet might ask questions such as:
- Who were the signers on the lease?
- Were there additional occupants? How many?
- What were the basic lease terms?
- What was the amount of monthly rent?
- What was the security deposit amount?
- Did the tenant lease other facilities such as parking, storage, or garage?
- What were move-in move-out dates?
- What reason did the tenant give for leaving?
- Was notice given per the lease agreement?
- Was a walk-thru checklist used for move-in and move-out?
- Were there other deposits or fees collected?
- Was there satisfactory history regarding maintenance that was responsibility of the tenant?
- Was the full security deposit refunded?
- Were any legal notices served?
- Was it necessary to issue any warnings? Was situation cured satisfactorily?
- What was the rent payment history –number of times late, most days overdue, was resolution satisfactory?
- If pets allowed, was landlord satisfied with pet behavior, with no significant pet problems?
- If smoking allowed, were there any related damages or other problems?
- Would the landlord re-rent to the tenant?
- What types of screening does this landlord use?
Personal References
Personal references generally include friends, relatives, co-workers, or other individuals the applicant regards as being able to give favorable character recommendations. Most applicants would not list a reference who might give a negative opinion. This should be taken into account when contacting personal references.
However, while some landlords may consider personal references to be self-serving for the applicant, personal references should not be overlooked as a good source of information. Particularly in a tight rental market, or for first time renters, students, and former homeowners returning to the rental market, the information provided by personal references can make a difference when customary sources are not available or insufficient.
Some questions to ask personal references may be:
- How does the reference know the applicant?
- How long has the reference known the applicant?
- How frequently does the reference keep in contact with the applicant?
- Is the reference a former roommate or co-tenant?
- Has the reference served as a reference before? If yes, for what purpose?
- Is there a business relationship with the applicant?
- Does the reference think that the applicant would be a good tenant? Why? (Can the reference provide examples of behaviors that demonstrate the applicant’s good qualities?)
Due diligence in all phases of property management is key to reducing risk and avoiding unnecessary stress and expense in tenant selection. Without sufficient information obtained from a variety of sources, an informed business decision cannot be made. Reference checking is an essential part of risk management for landlords.