Landlord References- How to Screen Them Like a Pro

Tracking down previous and current landlord references is a lot like being a detective; First, you have to find the landlord and verify property ownership and then you have to get them to talk to you. This can be difficult for two reasons: Landlords are busy people; Aside from managing their rentals, they often hold down 9-5 jobs and have family obligations. They also don't want to be sued for sharing information about a bad tenancy. Yet if you decide to be that applicant's new landlord, you need to know if an applicant's tenancy will provide you with reliable cash flow or take you to the cleaners. 

Moreover, you may view screening an applicant's past landlord as a waste of time if you have a good current landlord reference. Resist the urge. References from previous landlords are more telling about a tenancy and hold more weight because there is no reason for them not to tell you the truth about a tenancy. However, if the current landlord wants a bad tenant out, he may lie about an applicant's rental history and gladly pass his "problem" onto you in order to avoid the cost of eviction. A current landlord's reference becomes more valuable, however, if the applicant's tenancy was two years or more.

So how do you go about tracking down a former and current landlord reference? And once you've found them, how do you get them to respond about an applicant's tenancy? 

Verify The Landlord or Management Company

Start by doing an internet search to determine if the person listed on the application actually owns the property. Check with your local agency that collects property taxes, such as the County Tax Assessor. These are public records and can be accessed by anyone. There may be a nominal fee or they may be free, depending on the agency. The property is likely a rental if it is listed as non-owner occupied. Often the owner's physical address will be listed, although phone numbers will not.

If the property address shows ownership under a limited liability company and you would like to find the name of the actual owner, find the agency or department that monitors and licenses corporations in your state. In California, for example, the agency that monitors corporate entities is the California Secretary of State Department of Corporations http://www.sos.ca.gov/business-programs/business-entities/

Once you are on the appropriate website, do a business search by entering name of that entity. When the name pops up, click on it and you should see one or two people listed as registered agents or if it is a corporation, listed as officers. These folks are likely the owners of the property. Phone numbers may not be listed. However, you may find them by searching their names on social media websites such as Linked in which may list their business contact information.

Sometimes the tenant will list the name of the property manager rather than the owner. You can verify a property management company or apartment complex by doing an internet search. Ask the applicant the name of the company they make their payment to and do an internet search to verify that the address and company name match. Call the company and ask for that property manager. Apartments are easier to verify because the address and name can be cross checked on the internet. Call the number listed on the website (not the application) and ask to speak to the manager. The advantage of both property and apartment management companies is that they are more professional and less sloppy at record keeping than individual owners. This becomes important when asking questions that can be backed by documentation.

What if the tenant's previous landlord was their mortgage company? 

If prospective tenants do not have a rental history because of former home ownership, ask them for their most recent mortgage statement that shows they were current in their payments. On the other hand, if they lost their home due to a foreclosure or a short sale, then you'll want to scrutinize their credit report to make sure they kept current on other bills and that they have a strong and stable income source. 

So now that you've found the previous landlord, how do you get them or their management companies to talk to you?

Provide Written Consent

Verbal requests from you about an applicant's tenancy will go unanswered. For this reason, you must require all applicant's you're considering to sign a consent allowing you to verify their rental history. Professional property and apartment management companies will only provide answers to rental history questions if tenant provides written consent. You can submit a landlord reference request to them by fax or email. Private landlords may speak to you but may only provide vague answers.  Both individual owners and property managers are wary of being sued by a previous tenant. That's why the questions you ask must be verifiable and objective in assessing that person's tenancy.

Ask Questions That Can Verify Good Tenancy

If you ask previous landlords how well they liked the tenant or if they would rent to that tenant again, you may not get an honest answer. Landlords and property managers have personal opinions about a particular tenant, but will not give them if it could land them in legal hot water. However, this changes if you ask them if that tenant paid late and what were the dates or if that tenant was ever served a three day notice for being in violation of a term in the lease. The difference is that those questions can be verified with documentation.

Here is a list of sample questions you will want to include on your landlord reference form:

- Did this resident ever pay late and what were the dates

- How long did the resident occupy the property and what were the dates?

- Did the resident leave the property in good condition?

- Did this resident leave an unpaid balance?

- Did you ever have to serve this person a notice for a breach of the rental contract? 

Granted, tracking down previous landlord references is time-consuming for busy landlords. Yet don't be tempted to skip this step. 

Whether you use an online membership service such as Renterinc.com to check landlord references, hire a property management company or do the screening yourself, getting complete rental references can mean the difference between your rental making a profit or turning into a money pit.