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Top 3 Reasons To Perform A Tenant Reference Check

10-May-2018

Even if you don’t have a horror tenant story, every landlord knows the importance of finding great tenants. But searching for the perfect renter can consume a lot of time and resources.

Performing a tenant reference check is a smart, efficient way to screen the people who are interested in renting your property. You’ll find out quickly who the most qualified applicants are and be able to use that information to fill your property will great tenants.

Take a closer look at the top 3 reasons why a tenant reference check is a good idea.

1. Verify Income and Employment

One of the most common and frustrating landlord headaches is nonpayment of rent. A reference check will allow you to verify a potential tenant’s ability to pay.

Our tenant screening cross-checks pay stubs, bank statements, tax records, credit reports, and any other relevant financial documents to make sure that your prospective renter has sufficient means available. For applicants moving from out of town, we verify their job transfer or new employment status as well.

Knowing your tenants are financially stable and will pay their rent on time will help give you peace of mind about your property. It will also allow you to focus on undertaking improvements and upgrades that will make your tenants happier.

2. Learn About Prior Renting History

A previous landlord can provide useful information to help you determine the desirability of a potential applicant.

They’ll be able to indicate any late payments, reasons why a security deposit was withheld, or other concerns you should know about. Your own relationship with that tenant will probably not be very different.

Checking rental history will also give you clues about how long a tenant is likely to stay on your property.

Knowing this information is useful, especially when deciding between otherwise qualified applicants. Certainly each situation and each tenant is different. But being aware of patterns will help you make smarter decisions about who you accept as tenants.

3. Discover Any Behavioral Red Flags

When selecting new tenants, you must consider the well-being of your property residents as a whole. A building full of good neighbors is one that saves you headaches and, ultimately, money.

A good tenant reference check will uncover red flags that may give you pause about accepting a particular applicant.

Is there a history of property damage or noise complaints? Does your renter-to-be have a criminal record or evidence of anti-social behavior?

You must be aware of this before you make any decision. Even if you choose to rent your property to someone with red flags in their background, it’s important that you have all the info you need to properly assess the risk.