Top 3 Things to Ask Your Prospective Tenant’s References

In a competitive rental market, every lead is vital. After all, a high tenant turnover rate can wreak havoc on your annual profit, which is why placing tenants efficiently is so important. However, not every prospective applicant that wants to see your rental property will meet the qualifications. That said, placing a bad tenant causes even more problems than a vacant property. Landlords that do not perform proper tenant reference checks find themselves wasting time, and of course, money.

Thus, thoroughly screening all potential tenants is critical to a landlord’s success. A thorough tenant screening process should include pre-screening, income verification, credit and background checks, and rental reference checks. Today, we’re taking a closer look at one of the most important steps: speaking with a prospective tenant’s references.

Main Takeaways

• Tenant reference checks help verify the information provided on a rental application and can uncover issues that may not appear on a credit or background check.
• Speaking with previous landlords, employers, and other reliable references can help landlords make more informed leasing decisions.
• Applying consistent screening criteria and following Fair Housing laws helps reduce risk and supports a fair tenant screening process.

Should Landlords Pre-Screen Potential Renters?

Conducting tenant reference checks is a necessary step to finding a great tenant. While reference checks are important, they’re only one part of a complete tenant screening process that also includes verifying income, reviewing credit, and evaluating rental history. 

It’s a strategy many experienced landlords and Northern Virginia property management companies rely on to save time and focus on applicants who are most likely to qualify.

However, before a landlord gets to that step, we highly recommend beginning with the practice of pre-screening prospects. This serves two main purposes: saving time in the long run and helping discern who is truly serious about applying. Therefore, the initial contact offers the ideal time to inform applicants of the basic qualifications and gauge their interest level. Check out some of these common pre-screening questions below but remember to follow Fair Housing Laws!

Apply the same pre-screening questions to every applicant to help ensure a fair and consistent screening process.

Questions to Pre-Screen Potential Applicants

• When do you plan on moving?
• How long have you been in your current home?
• What are you looking for in your next home?
• How many occupants will be living in the unit?
• Do you have or plan on getting any pets?
• The property is non-smoking; are you able to comply?
• Do you meet our minimum income qualifications?
• Are you willing to complete the required screening process?
• Under what circumstances have you ever broken a rental agreement?

How to Conduct Tenant Reference Checks

There are a few steps landlords must remember before completing tenant reference checks. When you follow these three easy guidelines, you save time, money, and aggravation in the end. Preparation is the key to success, so follow along below.

1. Research and Verify – It is not unheard of for applicants to give fake or incorrect information. Whether it is on purpose or an honest mistake, landlords must verify the details either way. In some cases, tenants enlist a friend or family member to answer the call and vouch for them. Therefore, always double-check names and verify the information for their previous landlord or property management company.
2. Pick Up the Phone – Emailing is not the best option for conducting tenant reference checks. Instead, phone calls offer a chance to hear the tone of the landlord’s voice. Furthermore, any tech-savvy tenant could easily make a fake email account to give themselves a reference.
3. Ask the Right Questions – Once you have someone on the phone, this is your chance to get the answers needed to make an informed decision. So, ask plenty of open-ended questions to get as much detail as possible. Yes, this takes time, but it is worth the effort to ensure a landlord selects the best fit for their rental property.

Who is an Acceptable Tenant Reference for Your Rental Property?

Just because a potential tenant seems great on paper does not mean they are the high-quality choice for your valuable rental investment property. Therefore, conducting tenant reference checks provide the much-needed insight to ensure you find the best fit. Ideally, professional references or former landlords are the most reliable and helpful with their information. Thus, this is not a step in the process you want to rush. So, join us below as we look at three categories of tenant reference checks to aid in your search.

Common Types Individuals Used as Tenant Reference Checks

1. Previous Landlords
2. Employer References
3. Personal References

How to Speak with Previous Landlords for Tenant Reference Checks

Speaking with your prospective tenant’s previous landlords is one of the most important things you can do when placing a tenant in your rental. Also, if you only speak to the tenant’s current landlord, you may not get a true idea of what your tenant is like. Therefore, they could be a bad tenant that the current landlord just wants to get rid of. So, it is best to speak with references that no longer collect rent from your prospective tenant.

What to Ask Previous Landlords for Rental Reference Checks?

• Were rent payments made on time and in full? – Landlords rely on timely rental payments as part of a successful business. Therefore, inquiring about previous payment history will help you determine how responsible your prospective tenant is. Thus, finding a tenant that pays in full and on time means minimal hassle or risk of eviction proceedings.
• What was the monthly rental rate? – Understanding how much your tenant was paying previously compared to what you are asking helps gauge their financial situation.
• Describe how the tenant maintained the property? – This open-ended question is a critical one. After all, you do not want to place a careless tenant in your property that will poorly maintain things.
• How did the tenant communicate with you?– Excellent and respectful communication is a great quality to have in a prospective tenant. After all, you or your property management company will need to contact tenants for routine inspections, maintenance, and rent matters. So, dealing with occupants that refuse to discuss anything only adds unnecessary stress.
• Would you rent to this tenant again?– This is the big one when it comes to tenant reference checks. If a previous landlord hesitates to recommend a tenant to you, you may want to rethink their application.

Other important questions to consider asking include –

• Did the tenant have roommates that contributed to the monthly rent?
• Were they evicted from the property?
• Did they have any pets?
• Did neighboring tenants ever make complaints against the tenant?
• How long was the tenancy?
• Why did the tenant choose to leave?
• Does the tenant smoke?

How Employers Can Help with Tenant Reference Checks

Do you want to ensure that your prospective tenant can pay the monthly rent on time? Another important aspect of tenant reference checks is speaking with their current employer. This can help verify employment and income information provided on the rental application.

Moreover, it will help you verify the details of their application regarding employment. So, not sure what to ask? Below are some great questions to have on hand when contacting employers as part of your tenant reference checks.

• What was the tenant’s original date of hire?
• What is the tenant’s current salary or hourly rate?
• How many hours per week does the tenant work (if paid hourly)?

Another point of contact to reach out to is the HR department of the tenant’s employer. While you hope a supervisor would not embellish the truth for a “buddy,” it does happen. Therefore, your prospective tenant’s reference may not be entirely truthful regarding hours worked, personality, and even salary. However, speaking directly with those in charge of such matters can corroborate what your tenant has placed on their application.

What to Ask of a Tenant’s Personal References?

Talking to friends and family of a prospective tenant is another great way to get to know the kind of person your tenant is. Thus, those closest to the tenant can provide useful information despite the bias that may exist. So, with that in mind, below are some things to consider when using a personal contact in your tenant reference checks –

• How long have you known the tenant? – Knowing how long the reference has known the applicant can give you a little more context when considering their feedback. Just keep in mind that personal references are likely to have a positive opinion of the applicant.
• Can you verify any information about their previous rental history? – Depending on how well they know the applicant, a personal reference may be able to confirm basic details about their rental history or past living arrangements. This can provide some extra context alongside the rest of your screening information.

Additional Rental History Questions

Keeping Fair Housing laws in mind, landlords may also ask previous landlords about documented rental history and lease compliance. Here are a few examples: 

• Were there any documented lease violations related to noise or disturbances?
• Does the tenant own or keep pets?
• Were there any documented complaints or lease violations involving other residents?

Under What Circumstances Should You Deny a Tenant?

Once you have conducted tenant reference checks on the applicants you have, it is time to narrow the field. Speaking with former landlords can unveil undesirable or risky behavior not evident in other forms of tenant screening. Thus, there are several reasons why a tenant may not be a good fit for the property. Let’s review a few reasons below when denying a tenant is warranted.

Reasons to Deny a Rental Applicant

1. Payment History – An applicant’s rental payment history may be relevant when evaluating whether they meet the landlord’s written screening criteria. A documented history of late, missed, or incomplete rent payments may be considered as long as the same standards are applied consistently to all applicants.
2. Eviction History – An eviction record may be relevant to the screening process depending on the circumstances, but landlords should avoid automatically denying an applicant based solely on an eviction filing or record. Consider the outcome, reason, age, and relevance of the record and apply the same written screening criteria to every applicant.
3. Documented Property Damage – What did the previous landlords say about damage? If they indicated extensive damage or failure to report issues promptly – take notice! When reported damage extends beyond wear and tear or tenants fail to report maintenance needs, this can drastically affect your property and bottom line. Therefore, landlords may decide an applicant is not the best fit based on their written screening criteria.
4. Lease History – A documented pattern of unjustified lease violations or unauthorized early terminations may be relevant under a landlord’s written screening criteria. However, landlords should consider the circumstances and should not penalize applicants for exercising a legal right to terminate a lease.
5. References Do Not Check Out – If you cannot verify an applicant’s rental references, ask for additional documentation or alternative methods of verifying rental history. Whatever verification requirements you use should be included in your written screening criteria and applied consistently.

FAQs About Tenant Reference Checks

Tenant reference checks are an important part of the rental screening process, but many landlords aren’t sure what to ask or who to contact. Below are answers to some common questions.

Should landlords contact previous landlords?

Yes. Speaking with previous landlords can provide valuable insight into an applicant’s payment history, lease compliance, property care, and communication.

Can I rely on personal references alone?

No. Personal references can provide additional context, but previous landlords and employers generally provide more objective information about an applicant’s rental history and financial stability.

What questions should I ask a tenant’s employer?

Employers can often confirm employment status, length of employment, and income information, helping landlords verify details included on the rental application.

What if I can’t verify a tenant’s references?

If you cannot verify the information provided, ask the applicant for additional documentation or alternative references before making a decision. Consistent screening procedures should be applied to every applicant.

Are tenant reference checks enough to approve an applicant?

No. Reference checks should be one part of a complete tenant screening process that also includes reviewing income, credit, rental history, and any legally permitted background information.

Need Help Finding Reliable Tenants?

Although not entirely foolproof, tenant reference checks are an essential part of a thorough screening process. After all, placing an unqualified applicant in your property could mean lots of stress, missed rental payments, and a possible trip to the courtroom. Hence, requiring multiple references and actually looking into them is so helpful for avoiding problem tenants.

If you are looking for a solid way to place tenants in your rental property, look no further than Bay Property Management Group. Rest assured that the quality real estate investment management services of Bay Property Management Group will swiftly and legally handle any tenant or property matters. Give us a call today to find out what full-service rental management can do for your investment.