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Jeff McCaskey
  • Investor
  • Isabel, KS
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Does anyone actually check references on an application????

Jeff McCaskey
  • Investor
  • Isabel, KS
Posted Feb 25 2015, 19:26

I just wanted to hear from anyone and everyone about this topic.....

I have been doing this for about 5 years now and probably run through 100 different tenants (total number of people - not turned over units) in my time and I check every application that gets turned in!!!

BUT....... during that time I have only had ONE, yes count that ONE, other manager call me to check on a previous rental reference for an applicant.

So since I basically get nobody at all, ever, whatsoever, calling to check references I am forced to assume that the VAST MAJORITY of landlords don't ever make the phone calls.

Like I said, I sure as hell process ALL of my applicants. Have the rest of you had any experiences similar or different to share????

I can't wait to read what you have to say :)

Thanks!!

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Ali Far
  • Los Angeles, CA
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Ali Far
  • Los Angeles, CA
Replied Feb 26 2015, 04:41

I have tried calling multiple landlords in the past. Sadly, 3 out of 4 times in my experience, landlords would not provide any info due to fear of liability or would make it difficult by asking to email/fax them a signed release of info form from prospect tenant. Even with the release form, some of them would not provide info (would not return call/email/fax). This is especially the case with big apartment complexes.

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Aly W.
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Aly W.
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Replied Feb 26 2015, 06:20

I always check landlord references, and verify the landlords through property tax records. I've caught several tenants who gave the names of "landlords" who turned out to be relatives/friends, who would hang up on me when I asked why the name on the tax record for the property wasn't theirs.

I've only been called maybe 3 times in 9 years about previous tenants. I had a tenant for 3 years that always paid the rent on time, was polite and respectful, then left the place a disaster when he and his family moved suddenly. I never got a call from another landlord about him, and I have to wonder why anyone would rent to him with a 3 year history and not check up on it. Of course he knew I would give him a horrible reference, but what landlord wouldn't want to know his history?

I've called apartment management companies and they gave all the info they had (after being faxed the tenant's signed application giving permission to do background checks). Individual landlords have given me good and bad references on tenants. If they're getting rid of a bad tenant, they have nothing to gain by giving a good reference - the tenant will be out of their property one way or another, and they don't care where they go. They're happy to warn me of problems.

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Ralph Pena
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  • philadelphia, PA
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Ralph Pena
  • Rental Property Investor
  • philadelphia, PA
Replied Feb 26 2015, 06:28

As far as credit checks go. Are u guys looking at the full report, bcuz the screening service I use won't let u see their report. And the one that does says I have to have a full office set up with someone to come out and check b4 I can be released Ppls credit info

Account Closed
  • Property Manager
  • Big Bear Lake, CA
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Account Closed
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  • Big Bear Lake, CA
Replied Feb 26 2015, 06:52

I always call their previous landlord, after checking the tax records to see who owns it. If they are living with parents, I have the parents co-sign.

I have had people give me bad references for tenants that they were actually trying to get rid of, which surprises me. But it happens. So, I always call. 

I have probably had no more than 1 or 2 people ever call me for a reference.

I recently signed up a new home for our property management services because the owner was having trouble collecting rent from her tenants. When I did a background check, I found that they had 2 previous evictions. She should have checked references. Guess what? We had to evict them, and I know that they found another place to rent (small town). So they found someone else that didn't check.

You should always check references and do a thorough background check.

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Dan B.
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  • St Paul, MN
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Dan B.
  • Rental Property Investor
  • St Paul, MN
Replied Feb 26 2015, 07:03

I can't believe how many on here don't check references, or even ask. I do!

I've not had many tenants leave my properties - but I did have a lot of roommates over the years, no one ever called me about them. Most of them were the friends/family that I should never have rented to though.

Even the fact that its on your application will dissuade some would be poor tenants.

I don't think it's that hard to figure out it they gave you a real landlord or a friend if you phrase your questions correctly. Ask things a landlord would know, that friends wouldn't easily know, what address, what dates, what was the rent amount, were there increases, did they have any complaints about the tenant, did they have anything deducted from their security deposit. Landlords will know these answers, or can find them out, or may say 'I don't know', or 'I'll have to check my files', friends will usually just fumble the questions and make up numbers. It's worth the call!

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Aly W.
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Aly W.
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Replied Feb 26 2015, 07:08

I will ask the "landlord" (after verifying the tax records) how they know this person. I don't ask if they're the landlord. The person may be playing the employer, the landlord, the personal reference...they don't know who you want them to be, so if they start stumbling, you'll know it. And if they're not name on the tax record, I already know.

Account Closed
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Account Closed
  • Property Manager
  • Big Bear Lake, CA
Replied Feb 26 2015, 07:18

@Aly W. I like the idea of asking the landlord how they know the person. I will try that next time.

I often get landlords that are surprised when I call. Apparently it is because no one else has ever called them before.

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Roman Pak
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Roman Pak
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Replied Feb 26 2015, 07:19

I can't imagine not doing so. 

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Janna M.
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  • Tenafly, NJ
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Janna M.
  • Real Estate Investor
  • Tenafly, NJ
Replied Feb 26 2015, 08:22

Unfortunately, I learned the hard way how important it is to get references.  Happy to say I have survived my first nightmare tenant.  I used a leasing agent and assumed he did the necessary due diligence.  I later found out after filing for eviction myself that my tenant's prior landlord had filed for eviction THREE times.  In some counties (this was in GA) you can actually access a court's database online and do a name search to see if any eviction proceedings were initiated.  This is something to keep in mind when evaluating applications.  Wish I knew this before accepting this tenant.

I personally called the landlords of my last two tenants (who are working out great so far).  I found the references to be very valuable.  In addition to inquiring about on time payments, I like to inquire about service requests. 

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Dawn Anastasi
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Dawn Anastasi
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  • Rental Property Investor
  • Milwaukee, WI
Replied Feb 26 2015, 08:54

I wonder how many people actually know the "references" are fake and call them anyway, just to mess with them.

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Stephen S.
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Stephen S.
  • Wholesaler
  • Holiday, FL
Replied Feb 26 2015, 10:55
Maybe no one ever uses you as a reference? <g>

I do call, or or have someone call, but now that you mention it:  I can't remember the last time someone called Me. <g>

Although, that being said;  to a large extent tenants tend to either stay with me for a long time or are forced out under less than pleasant circumstances.  So I guess it does make sense that I get few reference-type calls.

Why are you so curious about it?

stephen
---------------


Originally posted by @Jeff McCaskey:

I just wanted to hear from anyone and everyone about this topic.....

I have been doing this for about 5 years now and probably run through 100 different tenants (total number of people - not turned over units) in my time and I check every application that gets turned in!!!

BUT....... during that time I have only had ONE, yes count that ONE, other manager call me to check on a previous rental reference for an applicant.

So since I basically get nobody at all, ever, whatsoever, calling to check references I am forced to assume that the VAST MAJORITY of landlords don't ever make the phone calls.

Like I said, I sure as hell process ALL of my applicants. Have the rest of you had any experiences similar or different to share????

I can't wait to read what you have to say :)

Thanks!!

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Jeff McCaskey
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  • Isabel, KS
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Jeff McCaskey
  • Investor
  • Isabel, KS
Replied Feb 26 2015, 11:14

@Stephen S. 

I'm not really sure what to say to you on this. I'm a little confused as to which way you're coming off. If you are trying to be a jerk then you should seriously reconsider and just back up turn around and head the other way. If you are simply discussing the post then ok, but I can't decipher tone of voice via text on a screen.

First of all I guess it doesn't really matter to me if  get used as a reference or not. I was the last landlord and if the next guy is actually doing due diligence then he would acquire that information through and application and then check on that persons history, unless he doesn't want to put in the effort or doesn't care.

You said @Stephen S. I do call, or or have someone call, but now that you mention it: I can't remember the last time someone called Me. <g>

So that's my point about starting the post, I call everyone - getting ready to right after this reply in fact, but...... nearly none call me. So if you have this 50K 100K 200K investment that could/would cost thousands of dollars to repair if it were trashed, why would you not check on previous history?????? I don't get it, I'm baffled on the subject and so I created the thread......

And from the posts it looks like there are a wide variety of responses to that question, but still looks like there are a number of people who just don't bother with it.

It was just a conversation piece and a good question and I wanted to know what others thought - it won't change the way I process applications at all. I try to eliminate as much risk as possible.

That's that I guess

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Jeff Rabinowitz
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  • Farmington Hills, MI
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Jeff Rabinowitz
  • Investor/Landlord
  • Farmington Hills, MI
Replied Feb 26 2015, 11:51

I always check. I verify the owner of the previous properties. If I find a lie I do not go any further. That is a denial of the application. As others have stated, it is the second to last landlord and previous ones with whom I most want to speak. They have no reason to not tell the truth. The current landlord may state there are problems with a good tenant they do not wish to lose or that there are no problems with a tenant they are trying to get rid of.

I do not get many calls for references myself. I don't have a lot of turnover and several of my former tenants moved because they purchased homes. A couple moved in with family.

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Dooreuhn Cee
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Dooreuhn Cee
  • Real Estate Investor
  • Chicago, IL
Replied Feb 26 2015, 12:32

I rarely get calls.  I do make calls.  However, I once gave a bad review of tenant that was squatting and would not move.  As a result, the approval switched to a rejection and I had to eat more lost rent.  Therefore, I don't really trust good reviews much without lots of detail.

Also, you have to verify the referrals as well.  In Cook Co. we can look up the owners which I match to the referral.  Have busted a few applicants.  Once I know referral is fake, I take it one step further and trap the fake into logical dead ends.  Sometimes they hang up, other times we have a good laugh and then I hang up.

Account Closed
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Account Closed
  • Investor
  • Central Valley, CA
Replied Feb 26 2015, 12:48
Originally posted by @Elizabeth Colegrove:

I don't even ask for them because they are BS. Who is going to give you the name of a landlord who will actually give a bad review. Even if they do, what landlord will actually give you a bad review since they don't want to deal with liable laws or the tent staying there or trashing the place. 

Isn't that the truth.  And landlords are not above lying, especially if they want to get rid of a tenant.  I bought a condo last year that came with a non-paying tenant.  Was behind 7 months with pretty much no intent to pay. The tenant was looking for a larger, more expensive unit.  The previous owners made a deal with the tenant to give him a good reference so he would move.  I told the owners it's a good thing the tenant asked them and not me.  I filed for eviction right after I bought it.  In the end the tenant got a new place and left with cash for keys and the eviction filing was dropped. CA law prevents eviction filings from being public for 120 days or if the case is dropped. So the my filing won't ever affect the tenant's ability to rent and the previous landlords gave a nonpaying tenant good references.  How is that not messed up?

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Stephen S.
  • Wholesaler
  • Holiday, FL
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Stephen S.
  • Wholesaler
  • Holiday, FL
Replied Feb 26 2015, 13:30
Wow;  me too - what was jerk-y about what I said? <g>

Where are you from?  I have never heard that expression:  " . . . .  you should seriously reconsider and just back up turn around and head the other way"

I'm just curious;  the various subtleties of language always interest me.  The sometimes amazing regional, even national, differences fascinate me.

BTW:  something else just occurred to me - maybe they aren't calling You, because you are the most recent landlord.  Maybe instead they are calling the landlord Before you.  I have heard that expressed as a way of avoiding a possible conflict-of-interest reference.  So if you have a tenant stay for four or five years, and then then stay four or five yeas at their next rental - someone who does it that way w might not be calling you for ten years! <g>

I never really gave it any thought before your mention.


stephen
-------------



 Originally posted by @Jeff McCaskey:

@Stephen S. 

I'm not really sure what to say to you on this. I'm a little confused as to which way you're coming off. If you are trying to be a jerk then you should seriously reconsider and just back up turn around and head the other way. If you are simply discussing the post then ok, but I can't decipher tone of voice via text on a screen.

First of all I guess it doesn't really matter to me if  get used as a reference or not. I was the last landlord and if the next guy is actually doing due diligence then he would acquire that information through and application and then check on that persons history, unless he doesn't want to put in the effort or doesn't care.

You said @Stephen S. I do call, or or have someone call, but now that you mention it: I can't remember the last time someone called Me. <g>

So that's my point about starting the post, I call everyone - getting ready to right after this reply in fact, but...... nearly none call me. So if you have this 50K 100K 200K investment that could/would cost thousands of dollars to repair if it were trashed, why would you not check on previous history?????? I don't get it, I'm baffled on the subject and so I created the thread......

And from the posts it looks like there are a wide variety of responses to that question, but still looks like there are a number of people who just don't bother with it.

It was just a conversation piece and a good question and I wanted to know what others thought - it won't change the way I process applications at all. I try to eliminate as much risk as possible.

That's that I guess

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Stephen S.
  • Wholesaler
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Stephen S.
  • Wholesaler
  • Holiday, FL
Replied Feb 26 2015, 14:06
Easy one - call their "previous landlord" and when they answer first say:  "Uhhh . . . oh;  I'm calling about that house you have for rent . . . how soon can we move in? "

No non-landlord stand-in reference will ever respond smoothly to that. <g>  

And if it does turn out to be their actual landlord just say why you are actually calling.  If they question about why you started off as you did - you tell them the truth again:  you wanted to make sure that it's not a false-reference person you are being directed to call.

stephen
-------------------


Originally posted by @Elizabeth Colegrove:

I don't even ask for them because they are BS. Who is going to give you the name of a landlord who will actually give a bad review. Even if they do, what landlord will actually give you a bad review since they don't want to deal with liable laws or the tent staying there or trashing the place. 

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John Chapman
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John Chapman
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Replied Feb 26 2015, 14:11

I am with  @Elizabeth Colegrove and @Account Closed for exactly the reasons they stated.  I notice that most of the examples of references "saving" someone from making a bad decision on a tenant involve instances in which the problem would have been detected with a simple background, criminal, or credit check.   Other instances of "problems" detected seem pretty trivial.  The information you obtain from a "reference" (landlord or otherwise) is so suspect that it's virtually worthless.    That's assuming, of course, someone actually calls you back.

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Bryan N.
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Bryan N.
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Replied Feb 26 2015, 15:47

I ask for previous landlords and references.  I never call them.  But, asking for them either runs an applicant off, adds to their "story", or they provide credible ones.  It's just another clue into how they will be as a potential tenant.  

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Chanté Owens
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Chanté Owens
  • Insurance Agent
  • Arizona
Replied Feb 26 2015, 17:47
Originally posted by @Ali Far:

I have tried calling multiple landlords in the past. Sadly, 3 out of 4 times in my experience, landlords would not provide any info due to fear of liability or would make it difficult by asking to email/fax them a signed release of info form from prospect tenant. Even with the release form, some of them would not provide info (would not return call/email/fax). This is especially the case with big apartment complexes.

 This is what happened with me. I've lived at my apartment for just shy of a year. My lease is up March 1st, so about 6 weeks or so prior to my lease being up I started looking for apartments and found one that would allow me to move in mid-Feb so I wouldn't have to pay a full months rent.

The PM contacted my current apartment complex. I gave ALL of the information along with their website and ANYTHING I felt that would make the process a smooth one for them. I provided the apt managers name and the email address. Well, the PM  contacted the apt mgr; who directed them to the Corp office,because she said she couldn't answer the questions, only the Corp office could. The new PM contacted them, and the Corp office required them to send in a fax w/signature to answer any questions. That PM did that and when they received the form back, my old Apt complex basically didn't answer anything, except for the length of time I lived there; confirmed my rental amount I was paying and that was it. They put "don't know" on several questions or simply didn't answer.  The PM of where I moved too was very perplexed by them, but fortunately didn't hold their lack of response against me.

What pi$$es me off about this is, if I were a poor tenant: hadn't paid my rent; nuisance, problems, etc, I'm sure they would have been more than happy to tell all of that. But, because I am a low key person; pay my rent (early) on time, they didn't do anything to help my process to move out by simply answering the questions the new PM asked. Annoyed...

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Ralph Pena
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Ralph Pena
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Replied Feb 27 2015, 21:44

@Chanté Owens it sounds like u could go on forever about that one!! LOL, but it's so true. As happy as u are for a tenant whos moving onto some place better for them. You don't want to see your goose who lays the golden eggs leave!

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Jeff McCaskey
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Jeff McCaskey
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Replied Feb 27 2015, 21:54

I guess most people out here in this part of the country don't play as many games etc, it's pretty easy for me to call up the previous and get a reference. You can pretty much tell right away if they are the landlord or not, and living in a town of 7000 makes it easier yet. I can call or get with any number of people and use FB and tell who is who and what they are about and what they do, who they know, who they are friends with etc etc to validate just about anything, even if I already know pretty much what I am going to do with the application from an initial reaction to meeting them.

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Sky Mikesell
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Sky Mikesell
  • Principal
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Replied Feb 27 2015, 21:54

yes we check.  to be honest we dont give a crap what the current landlord has to say bc they have motivation to lie if the tenant in their property is a thorn in their side. 

we always require they list previous landlord so we can contact them... if they dont have previous landlord then we simply require higher deposit in addition to scrutinizing everything else about them. 

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Sam Leon
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Sam Leon
  • Investor
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Replied Feb 28 2015, 09:12

Like others have stated, I cross check the property records to verify the landlords before I call, and I ask a tricky question or two before I get into it.

I do the same with employment verification.  I call the company main line to ask for the employer, not the cell number the tenant supplies.

I also ask for other information on the application form, pets, number of occupants, landlords, vehicle information, employment, salary etc...then I have a clause in the lease that binds the application form into the lease as an addendum, and stated that any incorrect information given on the app form is an automatic lease default.

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Chanté Owens
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Chanté Owens
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Replied Feb 28 2015, 15:43
Originally posted by @Ralph Pena:

@Chanté Owens it sounds like u could go on forever about that one!! LOL, but it's so true. As happy as u are for a tenant whos moving onto some place better for them. You don't want to see your goose who lays the golden eggs leave!

 @Ralph Pena Haha, you're right. I could have gone on forever!  I'm better now =)

I get it to a certain degree that you want to keep your good tenant(s); who doesn't? I just don't want to be penalized or appear shady because my current property management company/landlord won't disclose information or only offers partial/half info. Anyway, it's all good. Live and learn.