How To Avoid Dishonest Renters By Checking References

By Danielle Wirsansky on May 9, 2016

Property owners are always looking for ways to find more tenants and to keep them once they have them. But another really important aspect of finding tenants is finding honest renters.

There is nothing worse than having a full house of tenants when they are dishonest because it just brings so much hassle onto you as a property owner. It is tempting to accept any would-be renter that shows interest in your property so that you can stay successful; however, it can be more trouble than it is worth. Read on to learn how to avoid dishonest renters!

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Check References

Many property owners request references from potential tenants on their applications but rarely, if ever, actually go through with the reference check. But verifying them can actually be very enlightening for a property owner, regardless of if you have a good or bad feeling about the renter.

If you have a good feeling about the tenant, you can confirm the good vibes you are receiving from them very easily. If they pass the reference check, they are well on their way to showing that they are an honest renter. If you have a good feeling about a renter only to find that their reference check falls through, you can take a step back and re-evaluate. You can do further checks to see what else they might be being dishonest about and see if they can redeem themselves. Or you can stop there, the failure of their reference check enough to stop you from approving them. It can also give you a good gauge of how accurate your gut is, and by gut I mean your first impressions and instinctual feelings you feel about a potential renter.

If you have a bad feeling about the tenant, you can confirm your gut feelings, that churning in your stomach that starts when you think about renting to them. If they fail the reference check, that means your gut, and your instincts, were right and this person probably would have been a dishonest renter. However, if someone that gives you a bad feeling passes their reference check, especially with flying colors, you can give someone a second chance that you might have otherwise disregarded. Rather than losing a renter based on a faulty gut feeling, you might find a tenant that is a golden rather than a rotten egg. It is recommended that you pursue other options to check a potential renter’s honesty besides a credit check though, especially if you do have a bad feeling about them.

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Passing a Reference Check

What does passing a reference check entail? You want to find people that really fit the demographic of your property and that will fit in well with your other tenants and the lifestyle you are hoping to provide for your tenants. By conducting reference checks, property owners can avoid costs and fees slapped on them caused by dishonest renters. You want to confirm that the renter provided correct information.

First, the potential renter should have provided all the necessary information and filled it out accurately. The references given should not be family members. Next, the phone numbers should work and not be dead-end numbers or belong to someone other than the person listed by the renter as their point of reference.

Conducting a Reference Check

Right away when you speak to the reference provided to you by the potential renter, identify yourself, your title, and organization name. Be clear and open about why you are calling — for a reference for a potential renter you are considering. Be considerate and ask when would be a good time to talk and whether they would rather schedule a call at a later time. Make sure they recognize that you have the permission of the applicant to call and speak with them and that all responses will remain confidential. Give the reference time to respond to your queries. And be sure not cut them off or put words in their mouth while they are answering. Let them speak at their own pace.

You can ask them questions like how they are or were associated with the renter. Keep your questions appropriate and on topic and if an answer you receive is ambivalent, you can always ask followup questions to help you get a clearer idea of who the renter is as a person and if they are someone you want to get further involved with in business.

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Especially if you have many potential renters, this is a good way to weed out which renters you want to continue to pursue. If a potential renter does not pass their reference check, do not let them rent from you. They have already shown themselves to be dishonest and will only continue to do so.

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