As a landlord, screening prospective tenants is essential before agreeing to rent out your property to an applicant. Landlords who do not screen their tenants may risk costly problems, including damaged property, complaints from other tenants, and missed rent payments. Answers to rental verification questions from a potential tenant’s past landlords can provide valuable information and assurances about the kind of tenant they will be for you.
Asking the right rental verification questions can be the difference between a healthy, long-term landlord-tenant relationship or a costly situation that ends in eviction.
Key Takeaways
- Rental verification evaluates a potential tenant’s suitability to lease a particular property based on their qualifications.
- Responses to rental verification questions from a tenant’s prior landlords can help you understand how an applicant may be under your lease.
- Failing to ask rental verification questions may lead to contracting with undesirable tenants who fail to respect the lease terms, cause property damage, and create other problems for you later on.
How Rental Verification Works
Rental verification reviews a potential tenant’s prior rental history, among other details, to determine whether they would be a responsible renter.
The process begins by gathering essential information about the prospective tenant through a rental application. Examples of relevant data to collect include:
- proof of income or assets
- credit check
- details to contact the applicant’s prior landlords
An application may also need to obtain consent from the potential tenant to gather additional personal information from third-party sources, such as a background check authorization form.
Assuming an applicant meets the income, employment, and credit thresholds to rent the property, references from past landlords can provide further assurance an applicant is a suitable tenant. For example, a landlord may provide insight into an applicant’s behaviors, interactions with other tenants, and reliability in performing all obligations under a lease.
How Long Does Rental Verification Take?
Rental verification generally takes two to three days. However, it could take longer depending on whether the applicant needs additional information or if the prior landlords and references are difficult to contact.
Risks of Not Verifying Rental History
Contacting prior landlords provides more data points for making informed decisions about accepting or rejecting a tenant application. Skipping this step of the rental verification process could cause you to overlook details about a tenant that would indicate they are not a preferable candidate.
For example, a previous landlord might share information about the condition the tenant left their prior residence, such as extensive property damage, causing costly repairs. Or, they might reveal a history of late or unpaid rent, leading to financial losses for the landlord. Additionally, disruptive or problematic behavior towards neighbors can create a negative living environment for other tenants, potentially resulting in increased vacancy rates and decreased property value.
Renting to an unfit tenant can be a costly mistake, and conducting a proper rental verification is an effective tool for mitigating this risk.
Watch Out for Fake Landlords
Tenant applicants with a poor rental history are likely aware an unfavorable review from their prior landlord could be detrimental. Be careful of applicants attempting to bypass this issue by listing fake landlords. A trust-but-verify approach is essential when reviewing any listed landlord references. Simple techniques can provide greater assurance about the authenticity of a landlord.
For example, compare the contact’s phone number or email address with searchable information from a website or database. You may also cross-reference the provided name with available title reports, deeds, or property tax records. For larger commercial landlords, consider making two contact points with the leasing office’s representatives.
Questions to Ask for Rental Verification
The following questions are essential for rental verification because the answers will address the greatest concerns a landlord should have about a potential tenant.
1. Can You Confirm the Applicant Rented From You?
The landlord’s confirmation that an applicant was a former tenant is a foundational issue for further questions. If a landlord cannot confirm an applicant was a tenant, this signals the person may have lied on their application.
2. Did the Tenant Consistently Pay Rent on Time and in Full?
Timely payment of rent is perhaps the most important obligation a tenant has. Landlords should be cautious of tenants whose prior landlords provide anecdotal evidence about late or non-payment of rent.
3. How Long Did the Resident Rent the Property From You?
The length of time an applicant was a tenant under a prior landlord is an essential point of reference for weighing additional responses from that landlord. The longer the rental period, the greater a landlord’s insight into the character and reliability of the tenant could be.
4. Did the Tenant Maintain the Property Well, With No Significant Damages?
Property damage is a major concern for landlords because of repair costs and delays in leasing space to a new tenant. Take a prior landlord’s stories about significant damages an applicant caused seriously, as past conduct is sometimes the best predictor of future behavior.
5. Were There Any Issues or Complaints From Neighbors Regarding the Tenant?
Disruptive tenants can be detrimental to an apartment complex or multi-family property because they can drive away good tenants and make nearby units harder to keep under lease. Take the time to fully understand prior landlords’ concerns about a tenant’s cooperativeness and consider whether these are issues that might also occur if you were to accept the tenant.
6. Did the Tenant Comply With the Terms of the Lease Agreement?
A tenant’s compliance with prior lease agreements is another valuable signal about their reliability and likelihood of following your lease terms. Issues of non-compliance may show how difficult of a tenant they might be and hint at a general unwillingness to respect your policies.
7. Was the Property Left in Good Condition When the Tenant Vacated?
The state of the tenant’s prior rental after their departure further demonstrates their care and respect for the property of others. A tenant who leaves a unit in poor condition could still be a good rental candidate but may require additional deposit amounts or cleaning fees.
8. Did the Tenant Give Proper Notice Before Moving Out?
Proper notice of a tenant’s departure gives a landlord time to make necessary arrangements to get the space ready to return to the rental market. A tenant who fails to provide this courtesy may also fail in other communications needed for a healthy landlord-tenant relationship.
9. Was the Tenant a Good Communicator, Addressing Issues Promptly?
As previously mentioned, good communication is valuable for a potential tenant. Landlords require timely and effective communication to address any problems with the rental, including inspections and maintenance work.
10. Would You Consider Renting to This Tenant Again?
A prior landlord’s overall recommendation regarding a tenant can be useful in your evaluation. Either response may prompt a further discussion about what attributes or events with the tenant led to the prior landlord’s yes or no response.
Questions Not to Ask
Landlords can quickly find themselves in trouble for asking the wrong questions because of their illegal or discriminatory nature. Examples of specific questions to avoid when speaking to prior landlords include:
- What is the tenant’s political affiliation?
- Does the tenant use any assistive devices?
- How old are the tenant’s children?
- Has the tenant ever filed for bankruptcy?
- Has the tenant ever been arrested or convicted of a crime?
Each state may have laws on permissible questions a landlord may ask a potential tenant in their application or when speaking with provided references. Consulting with an attorney from the state where the rental property is located is recommended to better understand any limitations on your rental verification process.
What to Do if the Tenant Doesn’t List Any Previous Landlords
First-time renters who have never lived independently, such as recent college graduates or individuals who have always lived with family, may not have a rental history. Landlords may need to seek additional clarity on whether the applicant has ever rented property.
If a potential tenant lacks a rental history, landlords can still assess their suitability by conducting thorough background checks, verifying their employment and income, requesting letters of recommendation, and reviewing their credit history. Additionally, requiring a co-signer or lease guarantor can provide extra security, and a security deposit can help protect the landlord against potential damages or unpaid rent.
Without the opportunity to ask prior landlords rental verification questions, consider placing greater weight on a tenant’s income sources, occupation, and other factors that may demonstrate their suitability on the rental application. Seeking more information during an interview may be another valuable candidate evaluation method. By considering these alternative methods, landlords can make informed decisions about accepting or rejecting tenants without a traditional rental history.
Conclusion
Landlords can significantly reduce the risk of encountering problematic tenants by investing time in careful tenant screening and asking the right questions. Rental verification is a prudent business practice, and understanding a potential tenant’s rental history helps landlords make informed decisions, protect their property, and foster positive tenant relationships.
Remember, a well-vetted tenant is more likely to be responsible, respectful, and reliable, ensuring a smooth and successful rental experience for both landlord and tenant.
