Attracting and selecting the right tenants for your rental properties can make or break your rental property investment. Desirable tenants pay rent on time, are pleasant to communicate with, don’t disrupt others living around them, and are respectful of your property. The trick is knowing who these desirable tenants are when they fill out an application.
Asking for and calling rental references can give you insight into the applicant as a person and their lifestyle.
This guide will show you why it’s so important to ask for references and then follow up with them.
Verify Ability to Pay Rent
An applicant can claim that they make any amount of income on your application form. You need to verify that the information provided is correct by speaking with their employer.
Confirm the applicant’s length of employment, number of hours worked, and current salary. This will tell you the applicant’s ability to pay the rent and their level of stability. It’s a red flag if the applicant changes jobs every few months or grossly inflated their income level.
Don’t call the number provided by the applicant. Do your own research and confirm that the number they gave you is the company. Then call and ask to speak to the HR department. Unsavory applicants will provide a co-worker’s number instead of their boss or HR department’s contact details.
Determine Quality of Tenant
Speaking with an applicant’s former landlord can give you an idea of how that person will act when they are your tenant. The most common question is, did the tenant pay the rent on time?
If the answer is a solid yes, then great! You can move forward with the rest of your screening. If the answer is a bit more vague or a flat out no, then you may want to reconsider approving them for tenancy.
You also need to ask about the tenant’s treatment of the property. If someone caused extensive damage or more than the normal amount of wear and tear, then this is something you need to know. Additionally, ask about the tenant’s demeanor.
Did they generate complaints from other tenants, have regular visits from law enforcement, or generate constant complaints about the property for the landlord? This behavior is likely to continue when they become your tenant.
Try a Trick From the Pros
One trick experienced landlords do is call the landlord reference pretending to be a tenant looking to rent. Legitimate landlord references will expect this type of call and provide you with detailed information about available properties.
A fake landlord reference won’t expect this call and either say you have the wrong number or hang up. It’s also smart to Google the provided number to ensure it leads to a legitimate company or person.
Find Out About Their Lifestyle
If you ask the right questions, you can determine an applicant’s lifestyle from their personal references. This can give you an indication of how they’ll behave when living in your rental home.
Start by asking the rental references how long they have known the tenant. If they say only a short time, this can be a red flag as they may not know them that well.
Have a relaxed conversation with the reference. You’ll find out if the applicant is a party animal, more of a homebody, a family-oriented individual, or someone living a reckless lifestyle.
Have the Professionals Do the Research
It can be intimidating for people to make these important calls. If you feel uncomfortable or simply don’t have the time to follow up with rental references, it’s smart to seek assistance. Having a property manager screen applications for you saves you time, energy, and gives you the advantage of their experience.
Contact our office today and find out how we can help you manage your rental properties better.
