Landlord Reference Issue -- Is This Common?

Landlord Reference Issue -- Is This Common?

Rental Property Investor · Mooresville, NC · Member since 2017 · 3 posts · 0 votes

I had a very good potential tenant family for one of my properties apply today, and I ended up losing them to something I never would have thought of.  Their current landlord convinced them to stay after he got my reference call!

The family had been told that their current landlord was going to sell the house they were in once their lease was up on 8/31.  The owner of that house had given them the option to stay on month-to-month until the house sold, but they decided to look at other properties so that they wouldn't be forced to move with little warning once the house sold.

They viewed (and loved) one of my properties, and put in an application.  They were excited about my property, and all of their information checked out.  My final step was to speak to their current landlord for a reference.  He gave a glowing reference for the family, and wished me well in my business.  Next thing I know, the potential tenant, who just an hour earlier was ready to sign a lease, calls and says that they would be staying in their current house.  The owner had decided not to sell since they wouldn't stay on month-to-month until the house sold, and he convinced them to sign a new lease with him!

I certainly don't blame the potential tenant.  I understand not wanting to move if you don't have to.  My question is whether or not this is a common issue (the previous landlord convincing their tenant to stay after they get a reference call from a potential new landlord).  If this is a common issue, how do you avoid this?

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Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes
9y

Has never happened to us. And when someone tells me that they have to move because their landlord is selling...it's a red flag.

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  • Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes
    9y

    Has never happened to us. And when someone tells me that they have to move because their landlord is selling...it's a red flag.

  • Hudson, NH · Member since 2017 · 70 posts · 47 votes
    9y
    I think the biggest red flag is not selling if the tenants leave. I think that landlord is going to turn right around after the new lease is signed and put the house back on the market. I know people who were forced to leave because new buyers wanted the unit empty or the people didn't want to deal with all the scheduled walk throughs.
  • Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    Yes It's happened before, tenants that are good, pay, clean, when given a rent increase or lease term change are often given new terms if landlord changes his mind and can't either find good replacement tenant, or fails to sell said property.

    It is never a RED Flag for me if tenant says they are looking because landlord is selling.. I did just that and sold my rental.. yup those tenants were out looking the day after the sale.. new landlord gave notice of changing terms and they were all month to month so beauty of deal was just that.. new owners had choice of what they wanted to use property for, were held to long lease contract that was already in place.. 

    Best thing is to properly price your rental,, realize your good tenants are good and negotiate before you price them away and get someone in that's a nightmare. 

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