Good Tenant? Refuses to do background check

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Good Tenant? Refuses to do background check

Alex Kovalenko
Member since 2020 · 76 posts · 45 votes

Hey guys - we just started renting out a unit and have someone who is interested but refuses to do background checks (says: I am not applying for a job - why should I do a background check). He claims to have sold his house (no landlord references) and divorced his wife and wants a place for himself and his dog. He claims to be retired (no employment letter). 

We have just started advertising - what should we do? Thanks!

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Landon Bleau
Rental Property Investor · Toledo, OH · Member since 2018 · 309 posts · 264 votes
5y

Alex, in short, move on to the next.  Stick to your criteria, if it includes landlord reference, background check, and employment verification, and they won't provide you with any of that, don't even think twice about considering them.  My guess is extra month of vacancy will cost a lot less than renting out to this person.  

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  • Landon Bleau
    Rental Property Investor · Toledo, OH · Member since 2018 · 309 posts · 264 votes
    5y

    Alex, in short, move on to the next.  Stick to your criteria, if it includes landlord reference, background check, and employment verification, and they won't provide you with any of that, don't even think twice about considering them.  My guess is extra month of vacancy will cost a lot less than renting out to this person.  

    55Reply
  • Alex Kovalenko
    OP
    Member since 2020 · 76 posts · 45 votes
    5y

    Thanks @Landon Bleau- he looks legit but I wonder if many people refuse background check and why? Something must be up. I liked what you said: "extra month of vacancy will cost a lot less than renting out to this person" - makes perfect sense.

    4Reply
  • Andrew B.
    Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    I promise you, "good tenant" is not the right way to describe this person.

    20Reply
  • Alex Kovalenko
    OP
    Member since 2020 · 76 posts · 45 votes
    5y

    @Andrew B. - all the ones who refuse background checks are deadbeats? ;) 

    2Reply
  • Account Closed
    Member since 2021 · 240 posts · 300 votes
    5y

    He's got more red flags than my toxic ex.

    36Reply
  • Account Closed
    Rental Property Investor · Indianapolis, IN · Member since 2020 · 562 posts · 554 votes
    5y

    @Alex Kovalenko

    Trust but verify. You need to protect your investment. Generally if they refuse background checks and credit checks they are hiding something. Sometimes they are just concerned with privacy, and that’s fine for them. It’s not fine for you as an investor.

    Treat it like a business. Do the process that you have in place, and find someone who fits your criteria. If you let them take any shortcuts you are just inviting trouble to move into your property. That is not how to run a business.

    If they push back, just politely tell them no and that you can’t deviate from the policies. Blame it on a business partner if you feel like you can’t be that direct.

    There will be other tenants.

    25Reply
  • Joe P.
    Philadelphia, PA · Member since 2017 · 824 posts · 1k+ votes
    5y
    Originally posted by @Alex Kovalenko:

    Hey guys - we just started renting out a unit and have someone who is interested but refuses to do background checks (says: I am not applying for a job - why should I do a background check). He claims to have sold his house (no landlord references) and divorced his wife and wants a place for himself and his dog. He claims to be retired (no employment letter). 

    We have just started advertising - what should we do? Thanks!

    RUN from this guy. There's 8 billion people in the world. Someone else will come along. As someone else said, stick to your criteria. A background screen is imperative on all applicants. And most landlords (the smart ones anyway) will run a background check, so if this guy is new to renting and what goes into tenant screening, he'll find out really quick that 95% of applications are going to include a background check. Move. The. Fcuk. On. ASAP.

    28Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    5y
    Originally posted by @Alex Kovalenko:

    @Andrew B. - all the ones who refuse background checks are deadbeats? ;) 

     Not necessarily but it is more than that. You have a process and now you have someone who refuses to get on board with that process when they're in the honeymoon phase, the part where they want something you have and are usually eager to cooperate. Someone who is that uncooperative now, imagine what they're going to be like several months from now when they now occupy your property.

    Background checks are de rigueur today; anyone that has tried to rent property in at least the last 5 years knows that everyone (reputable) requires credit and background checks. By refusing he either has something to hide or insists on being difficult, neither of which describes a "good tenant".

    If you ignore this red flag I promise you will be back here in the near future asking how to evict this tenant. 

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    24Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    5y

    Cash buyer? Refuses to show proof of funds. - This is not a cash buyer.

    Your prospective tenant is hiding something. All parties follow the same process. End of story.

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  • Adam Martin
    Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    We have different views of what a good tenant is and it's not all about just receiving rent on time.  A formal application process is part of being a renter just like it is buying a house and his refusal to follow simple and normal processes may have something to do with his recent change in marital status.  I trust what prospective tenants tell me when I meet them but still need to verify and this verification often paints a different picture.  Even if the guy is telling the truth and is sitting on a mountain of cash and would have no problem paying how do you feel like he will follow any other rules.  You cave once to someone like this and they will steamroll any policy you have.  My opinion is either he is just a stubborn donkey or more likely everything he is telling you is a lie and he is hoping you just trust him so he can take advantage of you.  If you do rent to this guy I foresee a follow up post starting off that you took a chance on someone and asking for advice on how to get rid of them and recoup lost money.  

    10Reply
  • Scott Ashworth
    Rental Property Investor · Cary, NC · Member since 2019 · 55 posts · 57 votes
    5y

    @Alex Kovalenko I use a 1-page sheet I share with any prospective Tenant that outlines the Screening process. I tell them that I have no doubt they will pass with flying colors, but I must follow the same process with every prospective Tenant, lest I be accused of discriminating. 

    As someone else said: you have your criteria of what an Acceptable Tenant is, stick with it. Make them show you they belong in your investment. 

    Would you take the word of a Seller you have never met that their property matches your purchasing criteria totally sight unseen? Of course not. Trust and verify.

    No background check? No lease. He is doing you a favor...move on.

    9Reply
  • Eric Gerakos
    Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    Just say no.....

    4Reply
  • Joe P.
    Philadelphia, PA · Member since 2017 · 824 posts · 1k+ votes
    5y
    Originally posted by @Jonathan Greene:

    Cash buyer? Refuses to show proof of funds. - This is not a cash buyer.

    Your prospective tenant is hiding something. All parties follow the same process. End of story.

    So true -- I bought a property last year and offered cash...they asked to see the POF and before they could finish the sentence I had the paper ready to go. If you're serious, you'll present as serious. If you're a joker, you'll present as a joker.

    9Reply
  • Matthew Powell
    Investor · Savannah, GA · Member since 2019 · 66 posts · 35 votes
    5y

    Hey @Alex Kovalenko! Depends on your criteria. If you want to have thousands of doors one day then you shouldn't spend your day worrying about tenants not agreeing to a background check. Having a background check does nothing to harm your criminal record or anything of the sorts, so why is he denying it? If I were in your shoes, I would move on to the next tenant. Be patient in finding the right fit! Hope this helps!

    3Reply
  • Kris Canaday
    Investor · Greater New Orleans area · Member since 2020 · 16 posts · 5 votes
    5y

    Run! Background check has nothing to do with income, home ownership, etc. in my book. While all may be true, they're excuses for avoiding disclosure of his record. The background check has everything to do with criminal record and credit/payment history. Make sure you're familiar with your state's landlord/tenant laws! In some states, e.g., you are required to accept the first application that is submitted. Regardless.

    3Reply
  • Melody R.
    Real Estate Agent · Los Angeles · Member since 2018 · 80 posts · 75 votes
    5y

    @Alex Kovalenko I manage 82 doors and have never had one person ask me not to run a background check. It is standard practice. Occasionally one may ask to provide their own credit report, which I always say no. They typically make this request because they don’t want a ding on their credit, but for legitimacy purposes I pull my own. Anyways, the answer to your question is to stick with your criteria. The only thing worse than a vacant unit is an occupied unit with a tenant who isn’t paying rent. You can avoid this by keeping your selection process stringent.

    13Reply
  • Dave SpoonerPro Member
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 870 posts · 823 votes
    5y

    Hey @Alex Kovalenko, not to be a broken record, but I'd consider that a big red flag. Screening is one of the most crucial steps in the leasing process, and I'd definitely stick to your screening criteria and pass on this guy. It sounds like you just started advertising, so you'll hopefully get more (and better) applicants soon.

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    3Reply
  • Andrew Kessler
    Rental Property Investor · Akron, OH · Member since 2021 · 31 posts · 19 votes
    5y

    I would avoid this prospect. Make sure you can 100% get your tenants before you can get them in, especially with the current eviction moratorium going on until September I believe. Even if you have to wait longer it will be worth it to get someone who you can be confident in that meets your criteria! 

    2Reply
  • Nicki Shelton
    Fort Worth, TX · Member since 2021 · 92 posts · 32 votes
    5y

    @Alex Kovalenko I understand the tenants reasoning, however Alex as being a landlord I think you shouldn't bend your policies for a tenant regarding the background check. There are lots of tenants out there be patient and the right one will find your property. What software/program are you utilizing for background checks?

    2Reply
  • Brad L.
    Rental Property Investor · Manitowoc, WI · Member since 2016 · 178 posts · 186 votes
    5y

    Give him an inch, he'll take a mile. Allow him to move in against your policy and without a background check and he will be tip-toeing and stepping over all of your other boundaries and rules the entire lease term.

    9Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y
    Originally posted by @Alex Kovalenko:

    @Andrew B. - all the ones who refuse background checks are deadbeats? ;) 

     There is one of two reasons he is refusing:

    1. He is hiding something and looking for a sucker to rent to him. People play the numbers game. He will tell the same story to 20 landlords and one of them will say ok and rent to him. 

    2. He has a difficult personality and figures he is so great that he will set the rules. Someone like this will be ongoing trouble. 

    I would just tell him, we verify financial and criminal history on everyone. Just like every apartment complex. It is for the protection of our business. Even if he changes his mind, I would move on from this person. His attitude is trouble.

    7Reply
  • Ryan Talmadge
    Tampa, FL · Member since 2021 · 108 posts · 68 votes
    5y
    Originally posted by @Alex Kovalenko:

    @Andrew B. - all the ones who refuse background checks are deadbeats? ;) 

     I'm a semi-luddite and I don't do background checks or anything with technology. I mostly offer to pay 2-3 months rent upfront with security deposit. I cause 0 problems and no one has ever rejected me in real life... up to you though, just get his info and run him through sex offender database... tell him you have other folks looking too and you will get back to him... then you can just run a search on him yourself in google i'm sure. 

    some people just don't trust s*** I'm one of them and i don't trust anything but my 2 dogs and my wife... so yeah he could be a good dude lol

    Edit: With that said if it was my property I wouldn't take him.

    2Reply
  • Shiva Bhaskar
    Investor · Los Angeles, CA · Member since 2017 · 523 posts · 476 votes
    5y

    Background checks are standard. Under no circumstances should you agree to this. 

    4Reply
  • Derek Meyer
    Rental Property Investor · Largo, FL · Member since 2021 · 48 posts · 38 votes
    5y

    @Alex Kovalenko we just posted a listing on Facebook market place for 1 day and had 50 different people reach out wanting to move in. Know your market. If you have a large pool of people interested you can be a bit more picky.

    2Reply
  • Stephen Stokes
    Rental Property Investor · Austin, TX · Member since 2016 · 317 posts · 257 votes
    5y

    @Alex Kovalenko

    Part of maintaining your legal responsibilities is to treat everyone the same. Either require the background check (my suggestion) or don’t but be consistent or you are opening the door for a discrimination claim.

    10Reply
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