How to Check References of Prospective Tenants for Your Rental Property

Find out the background of prospective tenants by checking each applicant's credit history and references.

Difficulty: Moderate

Instructions

Things You'll Need:

• Financial Calculator
• Credit Reports
• Real Estate Attorneys
• Rental Applications
• Notebooks
• Personal Organizers
• Writing Pens
• Notebooks

1. Require prospective tenants to complete written rental applications. Ask for credit histories, personal references, and names of employers and former landlords.

2. Consider charging a rental application fee to cover the costs (such as long distance phone calls) of checking references.

3. Verify employment status and bank information by contacting employers and financial institutions.

4. Get recommendations on the character and trustworthiness of potential renters by contacting personal references.

5. Contact former landlords to check on the payment records of tenants.

6. Order credit reports from a major credit reporting company - such as Equifax or Trans Union - to verify credit history and learn about any evictions or convictions.

7. Contact an agency that specializes in screening tenants - such as National Tenant Network - to receive reports on applicants' tenant histories.

Tips & Warnings

• An applicant's previous track record is a good indicator of future behavior.
• Landlords can legally reject applicants on the basis of credit history or background - but not because of age, gender, sexual orientation or other discriminatory reasons. Check with the U.S. Department of Housing and Urban Development (HUD) about discrimination policies in rental housing.

[Robann]

on 10/20/2008 I never pay for background checks, I ask the applicant to go to our local police department and have a background check done on themselves. They pay the fee to the police department right there on the spot and return the report to me. It's signed by a department head with an ID number and dated. I also have my applicants order their own credit report, it's free for them to order it and it can be ordered online and printed right on the spot. So right in front of my desk they go online apply for their report and we print it right in my office.