How to Conduct a Reference Check for a Prospective Tenant

A reference check investigates an applicant to determine their suitability for leasing an apartment or other property. Depending on the chosen method, this might include asking neighbours, friends, or relatives if they have any knowledge about the individual. You may also ask them questions that can only be answered with personal information such as their current address or phone number. Reference checks are a way of filtering out bad applicants. They give you information about an individual that you would not otherwise be able to get. Property managers should use them for all new tenants. After conducting this type of investigation, you could learn that the applicant has too many debts or has been behaving in an antisocial manner. This information will inform your decision about whether to rent the apartment to them. Reference checks are not mandatory, but property managers should conduct them before making an offer. For people who are going to be renting an apartment, they should be common practice. This is especially applicable in the case of beginning tenants who might not be able to produce a reference check upon request. Reference check paperwork differs significantly from credit checks, which only use numbers and can often prove misleading. Property managers should ask several questions to potential tenants when conducting a reference check. We provided some questions that might help you determine if an individual is an ideal tenant. Note that these questions may not apply to all potential tenants and are not exhaustive. Property managers must conduct reference checking thoroughly before entering into any agreements with another person. • Has the tenant provided you with an up-to-date copy of their credit report? • Do you have a good understanding of how long the tenant has resided at their current address? • Are they on any government benefits? • Would they be able to pay the rent without the need for government benefits paid directly into their account? Taking on a tenant who relies heavily on these benefits typically presents problems for both parties and is not recommended. • Do you believe that the tenant will be able to take care of themselves? • What are their financial obligations? • Have they made any recent changes in where they live for family reasons or work? These questions will give you a balanced view of the tenant and maximize your chances of selecting the right person.

Rental History Reveals an Average of 3 Moves in the Last 5 Years

In assessing rental history, applicants have rented for an average of 7 years. These individuals have moved 3 times over the past 5 years. Previous landlords report an average of 2 late rental payments. Furthermore, 1 lease agreement has been broken by these applicants on average.

Financial Stability is Supported by a Credit Score Average of 650

Applicants typically report a monthly income of $4,000. Their savings could cover five months’ rent. There have been 2 instances of checks returned for insufficient funds in the past 2 years for the average applicant. The average credit score among these applicants is 650.

Employment History Shows 2 Jobs Held in the Last 5 Years

Applicants have been with their current employer for an average of 4 years. They have held 2 different jobs within the last 5 years. The average applicant had 3 absences from work without notice in the past year. For career progression, applicants have received 1 promotion in the last 5 years.

Applicants Provide 3 Personal and 2 Professional References

Applicants typically provide 3 personal and 2 professional references. These references are mostly positive, with an average of 4 positive references out of 5. However, 1 reference often mentions some form of reliability issues.

Legal and Compliance Issues Include an Average of 1 Eviction

Rental-related legal disputes have involved the applicant an average of 1 time. There is also an average of 1 eviction on the applicant’s rental history. Applicants have received fines 2 times for lease violations. Applicants own 1 pet, typically a dog or a cat.

How Many Maintenance Requests Do Tenants Typically Make

Applicants submitted an average of 5 maintenance requests at their last residence. Out of these, 2 were for damages caused by the tenant themselves. Neighbors or landlords filed 3 complaints against the average applicant for issues related to property care. Nonetheless, these applicants received their full security deposit back 50% of the time.

How Common Are Noise Complaints From Rental Tenants

Noise complaints have been filed against applicants an average of 2 times. Guest policy violations have led to warnings 1 time on average. Applicants own 1 vehicle. Smoking policy violations have occurred 1 time for the average applicant.

Should Landlords Accept Two Months Rent in Advance

Applicants typically prefer living with 2 roommates. They are willing to pay rent 2 months in advance. This advance payment indicates a level of financial stability and commitment to maintaining a positive rental arrangement.