Applicant does not want us to contact current landlord

Investor · Las Vegas, NV · Member since 2015 · 101 posts · 40 votes

Of course that's a red flag. The application has all the information about the current landlord but the standard form from the real estate agent allows the applicant to say "No" to the question "Do not contact landlord". Could I contact the landlord anyway? Should I just pass on this person? Why would this information in this standard form?

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

10y

I disagree, for a couple reasons. First, if your policy is the require Landlord references then that means you apply your policy to every applicant equally and fairly. If the applicant doesn't allow you to call the Landlord then they clearly do not meet your requirement. Second, the applicant may claim they are leaving because of the Landlord but there are typically two sides to every story. What if she is hiding something? What if the Landlord is just an ordinary Landlord and the Tenant makes ridiculous demands that drove the Landlord nuts so they asked her to leave?

If you can't contact the current Landlord then I would require a previous Landlord (not too far in the past) or reject the application.

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Robert Melcher
Residential Real Estate Broker · San Antonio, TX · Member since 2016 · 506 posts · 311 votes
10y
Almost universally it means they haven't given notice and may be in arrears as well. They might be tire kicking until they find the perfect escape from the current situation. What did the agent say was the reasoning for the request?
The applicant should always sign an authorization to release information that is blanket permission to contact anyone, from credit bureaus to landlords to employers.
A lease is a credit agreement. You agree to collect roughly $12,000 in installments for the purchase of the use of your asset. I wouldn't give someone $100 without some assurances, let alone for that much money and the risks to my asset.
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OP
Investor · Las Vegas, NV · Member since 2015 · 101 posts · 40 votes
10y
The reason of moving is "management". She did sign the application using a service "TenantReports". Her income is well above the 3x threshold. I'm waiting for the credit and background information.
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Jeff B.
Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
10y
Hint; Create your own application, ask for what you need, at the bottom;
I declare the above statements are true and correct and agree that they are part of the rental / lease agreement.
I hereby authorize a background check, verification of references, employment and a credit check as a
condition of occupancy; Signature _______________________________ Date __________
The only objections I get (rarely) is the request for SSN.
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Dana Dunford
San Francisco, CA · Member since 2016 · 238 posts · 204 votes
10y
@Account Closed-- I agree that you don't want to jump to any immediate conclusions, but I agree with @Robert Melcher... his reasoning is probably the case.
I would recommend:
1. Wait for the credit / background info
2. If it's clear, then get more details from the tenants on why you can't contact past management.
3. Ask for another landlord referral. I always ask for 2 (current landlord and prior landlord).
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Jeff Johnson
Rental Property Investor · Mc Kinney, TX · Member since 2015 · 35 posts · 9 votes
10y
I agree. The rent history is 1 piece of data to be consider in addition to everything else. I would review the background and credit. If it is good, I would state that I also need to check rental history but noticed they checked "no." And ask some questions about it. I would certainly change the wording on the application going forward.
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OP
Investor · Las Vegas, NV · Member since 2015 · 101 posts · 40 votes
10y
@Jeff JohnsonYes, I would agree about the application wording, however it's the agent's or the TenantReports form.
On the other hand, the question is a double negative: "Don't contact/No" means "Ok to contact." Right?
@Dana Dunford: I fear that's the reason but I'll hope for the best.
Thanks all!
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
10y
I disagree, for a couple reasons. First, if your policy is the require Landlord references then that means you apply your policy to every applicant equally and fairly. If the applicant doesn't allow you to call the Landlord then they clearly do not meet your requirement. Second, the applicant may claim they are leaving because of the Landlord but there are typically two sides to every story. What if she is hiding something? What if the Landlord is just an ordinary Landlord and the Tenant makes ridiculous demands that drove the Landlord nuts so they asked her to leave?
If you can't contact the current Landlord then I would require a previous Landlord (not too far in the past) or reject the application.
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Jeff Johnson
Rental Property Investor · Mc Kinney, TX · Member since 2015 · 35 posts · 9 votes
10y
@Account Closed- I believe you are correct. I would probably just cover it with them to be sure.
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Joan C.
Investor · San Jose, CA · Member since 2009 · 47 posts · 17 votes
10y
I had a tenant who did not want me to contact current landlord, he turned out to be very messy tenant, red flag！
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Travis Lloyd
Real Estate Broker · Fairfield, CT · Member since 2015 · 312 posts · 231 votes
10y
While it can be a red flag, it might also just be a cautious tenant who wants to explore their options without making their intentions known for one reason or another. Best way to handle this, in my experience, has been to go through the rest of the screening process and, assuming all else checks out, offer them a conditional approval. I will tell the applicant that they are accepted for the apartment, pending a reference from their current landlord. If they are trying to hide something, they won't accept my "acceptance". If they were being cautious but want the apartment, they let me contact the landlord.
I can agree with this myself, as a long-term renter. When I last moved, I went to look at and applied to 4/5 places. I did not need all of them contacting my current landlord (he was sad enough to have me leaving - didn't need it rubbed in his face). So I essentially made the "conditional approval" offer in reverse to my prospective landlords - letting them run their entire process except contacting my current landlord. When I made my decision on which place - I gave that landlord my current landlord's contact info.
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