Is it really necessary to check landlord references if the applicant qualifies financially?
Landlord reference checking is a simple step but some landlords skip over this critical screening thinking it unnecessary if the credit report is satisfactory. The fact that an applicant looks good on the credit report does not guarantee you’ve found a good tenant. Being in a hurry to offer tenancy without conducting all necessary tenant screenings has the potential for claims of liability and negligence.
Some applicants hope that a landlord will be too busy to check rental references and the applicant can slide by, therefore avoiding a negative reference or calling attention to the fact that the applicant is in process of being evicted.
Reference checking with previous landlords is an essential tenant screening. A landlord wants a stable, responsible tenant who is ready and willing to pay rent as agreed, maintain the rental premises to acceptable standards, and conduct himself as a good neighbor. There is no better source of direct information regarding a former tenant’s (now your applicant) interactions with a landlord and neighboring tenants.
If past behaviors give indications of expected future behaviors, then past rental behaviors are a measurement of risk associated with a future tenancy. Former landlords can provide the type of information needed to assess potential future risk. While the applicant’s interview and his application information may preliminarily qualify him to rental standards, details of a previous tenancy as provided by the landlord may tell a different story.
Former Landlords
If the applicant has been a renter for several years, calling previous landlords may provide more honest answers to questions about the former tenant’s rental behaviors. The tenant moved on but his records and his reputation likely remained with the landlord.
While some previous landlords could be hesitant to provide detailed information about a former tenant due to legal and privacy concerns, a landlord should be able to confirm basic information regarding dates of tenancy, rent payments, and the handling of the security deposit.
Current Landlord
An applicant may request that the current landlord not be contacted. The applicant may not have given notice or may not want the current landlord to know he is looking for a new place. There is also the possibility that the applicant thinks the current landlord will give unfavorable information about the tenant/applicant, which may or may not be justified depending upon the circumstances. While the request is understandable, the landlord should adhere to his stated tenant screening policies. If one exception is made, other exceptions might follow. However, the timing of the decision to contact the current landlord could depend upon whether the applicant meets other qualification criteria. If the applicant fails to meet minimum criteria there is no need to continue the screening process. If the applicant meets other criteria, the current landlord should be contacted. Any information obtained from the landlord interview would be analyzed with information from other screening reports for final evaluation.