About to sign lease when you learn new info about a tenant - how would you handle?

[Stephen T.]

Hi

I have a renter lined up for my first rental property. At the beginning of January during the screening process, we spoke with current landlord and he gave a very positive recommendation for this tenant - pays on time, very clean, kids are great - she's a good mom keeps them in line, sorry to see her go, etc.

This evening I get a call from current landlord that tenant has not paid January rent and that he's just posted a quit notice for the nonpayment. The other day he tried to call her to give her a chance to rectify before posting the quit notice, and she responded to him with a nasty voicemail (he played it for me) explaining that the house will be returned in perfect condition next week, to take her security deposit to cover January, and not to harass her any further. He didn't need to tell me this, but he feels betrayed after giving the positive recommendation.

We have not signed the lease yet, but she did give us first, last, and security deposit the other day - we were going to sign the lease that day but I had something come up and my wife didn't feel comfortable signing it without me there (both of our names are on the lease as landlords). I have started getting notices that she's setup water, electric bills to her name starting next week. We're supposed to meet tomorrow to fully sign the lease and hand over the keys.

What would you do in this situation?

Steve