Simply contacting tenant references is not enough. You need to contact them and ask all the right questions.
The importance of tenant background checks
Conducting tenant background checks is critical to ensuring you find quality tenants who respect your property and pay their rent on time.
Quality tenants typically have a stable income, a good credit history, and positive recommendations from previous landlords. They demonstrate reliability, responsibility and a respectful attitude towards the hotel.
A background check can assist you in verifying these properties, thereby reducing the risk of late payments, property damage, and eviction issues.
Questions to ask tenants for references
When calling tenant references, be polite and respectful of the previous landlord’s time.
First, explain who you are and what you are calling through background check questions. Then ask if they have time to talk.
It’s important to ask a consistent set of questions on every referral call. Standard questions can put you on the right side of fair housing laws—discriminatory questions can come back to hurt you.
Here are 12 of the best questions to ask.
1. Has the tenant moved in within the specified period?
Confirmation that a tenant will move in within a specified period demonstrates reliability and commitment. It also shows that they did not terminate the lease early, which could disrupt your lease schedule.
2. What is the monthly rent?
Knowing the monthly rent can help you evaluate your tenant’s financial stability. It also provides context for comparing their previous rentals to what you’re charging.
3. How much rent do tenants typically pay?
This question ensures that tenants consistently pay their full rent. It reveals any potential issues with part of the payment that could affect your cash flow.
4. Does the tenant always pay rent on time?
Timely rent payments are critical to your financial planning. A history of on-time payments demonstrates that the tenant is financially responsible.
5. Are utility bills always paid in full?
This question validates the tenant’s responsibility in managing household expenses. It demonstrates their reliability in maintaining essential services.
6. Does anyone else live with the tenant?
Knowing whether others are living with the tenant can help you understand compliance (or non-compliance) with the terms of the lease. Unauthorized occupiers may cause property damage and breach of lease.
7. Has the tenant received any legal notices (late fees, noise, unauthorized occupancy, notice to vacate, etc.)?
Legal notices reveal potential problems with a tenant’s behavior or payment history. They may raise red flags that could affect your property management.
8. Do you have any pets?
Knowing if a tenant has pets can help you assess potential wear and tear on the property.
9. Is the property in good condition (housework, lawn, etc.)?
A well-maintained home shows tenants’ respect for your property. It can help you predict how they will treat your rental unit.
10. Does the tenant give proper notice before moving out?
Proper notice ensures a smooth transition between tenants and assists you in managing vacancies. It reflects the tenant’s compliance with the lease agreement.
11. Does the tenant receive the entire deposit after moving out?
A full refund of the deposit indicates that the property is in good condition when the tenant leaves. This shows that they are complying with the terms of the lease and taking care of your property.
12. Would you rent to a tenant again?
This question directly assesses the tenant’s overall behavior and reliability. Positive responses enhance their suitability as tenants.
Tips for Conducting Effective Background Checks
An effective background check can help you select reliable tenants who will respect your property and meet their financial obligations.
Follow these tips to verify the authenticity of references and gather comprehensive insights into your tenant’s rental history.
Verify authenticity
Be sure to confirm the contact information provided by the tenant. Call the previous landlord directly and double-check details such as the property’s address and rental date to ensure authenticity.
Ask open-ended questions
Encourage detailed responses by asking open-ended questions. This approach can reveal more about a tenant’s behavior and reliability than a simple “yes” or “no” answer.
Check multiple references
Contact at least two previous landlords to get a thorough understanding of the tenant’s rental history. This helps identify consistent patterns in their behavior.
record everything
Keep a detailed record of the conversation for future reference. This file will be invaluable if any problems arise later.
What to do if an applicant does not have a letter of recommendation
Some applicants will not have any or limited rental references, usually due to their age or previous homeownership. Technically, this may not meet your eligibility criteria because you cannot ask standard background check questions.
In this case, your options are:
- Deny their application.
- Accept them without references and take the risk, assuming everything else about them is great.
- A co-signer is required.
- If your state allows it, an additional security deposit will be required.
The option many landlords choose is the second option: accept them without proof and require an additional security deposit.
final thoughts
There are many questions to ask your tenant references, but these are the most important. When you combine these questions with the other guidance above, you’ll be on your way to renting your property to tenants you can trust.
Save time and money with this refreshing guide to managing your own property.
exist self-managed landlordAmelia McGee and Grace Gudenkauf share tips for efficient property management, tenant screening and onboarding, and scaling your business, all to help you escape the 9-to-5 drudgery and create lasting wealth through real estate.
Notes on BiggerPockets: These are the opinions written by the author and do not necessarily represent the views of BiggerPockets.
