[USER]

Question for the landlords: What information do you verify about a prospective tenant’s rental history? Do you call the other landlords and verify the dates they rented, or the amount the prospective tenant paid?

Do you ever ask them for receipts?

I have a tenant who has been renting a property from their family member and so I don’t know if that would show up on a typical background check or whatever electronic verifications that would be done.

This is my first time going through this situation and I’d appreciate any input.

Thank you!

[David]

I verify income and run credit and criminal checks. Almost everything else can be faked.

I rent Class A properties so my primary method of screening is making sure they can afford the place and are not living paycheck to paycheck.

I collect 1st and last months rent and a deposit (so 3 months rent upfront) Some people feels it’s a bit excessive but people that can come up that kind of money are less likely to miss rent and trash the place.

I’ve been using that screening method for 8 years and not one tenant has been late on rent.

[Melissa]

You call and verify dates and if rent was paid on time or if there were any late payments—how often rent was late. Renting from a family won’t show up on background check or credit check.

I charge a higher security deposit when I can’t verify at least 3 years of stable rental history.

Also always run a credit check as well to check for evictions, late payments in general and credit worthiness.

And if you’re not doing employment verifications, you should be because people can lie about income when they complete an application.

Create or google an employment verification form for tenant to sign to authorize permission for their HR dept to share their employment info with you.

My form specifically states that the employer must email back the employment verification to me directly.

[Mandi]

I’d want to see a credit report so I know if they make on time payments in general. Someone with a bunch of collections, missed payments, and frequently opened accounts or credit pulls would be a red flag.

Not sure the legality on this and what the ‘rules are’ but I know when I rented apartments in the past credit was always pulled.

I had a rental for almost 2 years and it was managed by someone else. Overall horrible experience and I wouldn’t do it again.

In fact, we had our (my) home sit vacant for the 6 months after we got married.

We needed to renovate my husband’s home (another state) before selling it. It’s now our home.

A lot of people suggested short term rental because of juggling 2 mortgages and such. That was a hard pass from us!

[Robert]

Dude (or Dudette) one of the best things I ever did for myself when I decided to make residential rental real estate, a part of my journey towards FIRE, was to hire a property manager. She takes 11% of the gross rents.

But she does everything; and I mean everything she finds the tenants; screens them; deals with all the stuff that needs to be fixed, and all the issues that tenants have;… She’s been with me for 30 years.

I realize this does not exactly answer your question; but I look at it this way- when you self-manage a rental property; everything that needs to be done as concerns that property is an item on your to-do list along with everything else in your life.

When you turn it over to a property manager… That’s their livelihood. Who’s going to do the better job; and who’s gonna keep your tenants happy?

Now, if an individual is retired or only employed part time… Then maybe it does make sense for him or her to manage their own rental properties.

But it’s not something I would do.

[Suzi]

I think the credit check (showing on time payments) with no reported eviction, and clean criminal background check, with proof of income is more important.

I have never been able to get a good answer out of previous landlords. They will only confirm or deny whether the tenant lives there.

They won’t give you details because they either want the tenant out or don’t want to be sued.

[Author]

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