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?
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.
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.
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.
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.
@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:
Wait for the credit / background info
If it's clear, then get more details from the tenants on why you can't contact past management.
Ask for another landlord referral. I always ask for 2 (current landlord and prior landlord).
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.
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.
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.