As much as landlords want their property rented and off the market, they want the right tenant and not one that will end up costing them more than if they left the property empty.
Reference checking is one way to ensure an A+ tenant rents the property. There are three key reference sources; bank/building society, employer and previous landlord. While confidentiality clauses will prevent detailed information from being discussed, banks can provide proof of financial stability and capability to pay. Similarly, employers can provide financial information that indicates a tenant’s ability to pay.
Employment Reference
A typical rule of thumb would for the rent not exceed the tenant(s) income by 35%. Aside from financial information, employers can provide personal information; what is the tenant like to work with, confirmation of details such as current address, job position etc.
Landlord reference
Possibly the most important reference is the one from a previous landlord. This will provide you with key information that may make or break an agreement. A few questions will reveal what rent was paid, if it was paid on time and what the person was like as a tenant.
Some useful tenant reference check questions to ask:
- Was the tenant unreasonable in any way?
- Why did the tenant move out?
- How long did the tenant rent the property?
- Was the rent paid on time?
- Would you rent to this person again?
- Were there any complaints from other tenants?
- Did they cause any major maintenance issues?
What are the tenant reference check questions you would ask?
by Andreas Riha