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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  • Casey Moore
    Portage, MI · Member since 2017 · 1 post · 2 votes
    5y

    @Joe P. Love the advice Joe! What website would you suggest to run background checks? I’ve ran a few with help from others, but there must be an easier way

    2Reply
  • Curtis Mears
    Property Manager · Raleigh, NC · Member since 2014 · 729 posts · 596 votes
    5y

    @Alex Kovalenko

    Do not under any circumstance rent to this person. Tell them every tenant goes through the same vetting and if they are unwilling, then you will not consider them. A bad tenant will cost you much more than a few months of no rent while looking for a good tenant.

    2Reply
  • Robert Beardsley
    Member since 2020 · 117 posts · 84 votes
    5y

    shouldn't even be a question. if he is already telling you how to do your job and what he will and wont do. wait until. he movies in

    3Reply
  • Earl Borillo
    Member since 2021 · 42 posts · 13 votes
    5y

    I agree with everyone here. If he's got nothing to hide then a background check won't be a big deal. Save yourself the future hassle and say, NEXT! :)

    2Reply
  • Account Closed
    Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
    5y

    You should just hand over the keys and while you are at it, the deed to the property as well. Seriously? Is this even a question?

    3Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    Let me jump on this dead horse. No, you should not proceed any further with this individual. 

    Your policy should be that every adult gets screened. If a wealthy grandma, her 45-year-old daughter, and her 23-year-old granddaughter are all moving in together and grandma can easily pay all the bills, you still screen the other two because they may have criminal issues. You need to know their ability to pay but also their ability to act like civil human beings.

    This guy is recently divorced. RED FLAG! Newly divorced people tend to engage in reckless behavior like excess drinking, partying, "entertaining" guests that are mentally unstable, move jobs, etc. If he's divorced and retired, he has plenty of time on his hands to get in trouble.

    I'm not saying he's guaranteed bad. I'm saying there are some red flags that indicate there's a good chance he's got issues. The fact that he doesn't want you looking into his background seems to confirm that.

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    5Reply
  • Terrence Arth
    Investor · Scottsdale, AZ · Member since 2012 · 12 posts · 7 votes
    5y

    Hello Alex,

    First let me posit a question. If you had 100, or 10 or even 2 people as qualified who you ran through your established process, you would not even think of comparing this guy an I right? So the issue is not really about the lack of a background check, it is about a lack of applications. As many have stated or implied, if you think it can be hard to get someone into your rental, just wait until you try to get them out! In the age of Covid, you get a bad selection in, they are protected by law from being evicted. Further I believe the end date for non evictions will continue to be kicked down the road. Trust your gut... you felt like you needed to even ask this question. In my opinion, that choice was your gut telling you NO! Good luck!

    2Reply
  • Shehzad S.
    Investor · Indianapolis, IN · Member since 2017 · 41 posts · 34 votes
    5y

    Move on to the next prospect.

    Trust but verify!

    @Alex Kovalenko

    0Reply
  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ 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!

    Agreed ... next applicant, please. Not credible.

    2Reply
  • Suzanne Ludlum
    Investor · Fredericksburg, VA · Member since 2019 · 37 posts · 17 votes
    5y

    @Alex Kovalenko Do not accept. There is a reason he refuses and having no references about anything is suspect. Too many res flags. Move on, there are good tenants out there.

    2Reply
  • Mike Hyder
    Investor · Holly Springs, NC · Member since 2018 · 16 posts · 4 votes
    5y

    Move on.  What you must do is treat ALL potential tenants (and existing tenants) the same.  Meaning, they all agree to the lease terms, pay on time, are held accountable, are not shown any favoritism.  If you do, you open yourself up to legal issues.  Another tenant (or potential tenant) finds out that you showed favoritism and the next thing you have is a claim that you violated The Fair Housing laws.  

    1Reply
  • Aaron Poling
    Realtor · WV · Member since 2018 · 454 posts · 310 votes
    5y

    @Alex Kovalenko

    Stick to your process. Your not asking for anything out of the ordinary in my opinion. It is important to always treat potential tenants the same and you wouldn’t want to waive all of these safe guards for all your tenants so why even consider for this one. Once you tell him he has to apply properly or won’t be considered then maybe he will come around, otherwise find someone else.

    Good Luck! Aaron

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

    @Joe P. Love the advice Joe! What website would you suggest to run background checks? I’ve ran a few with help from others, but there must be an easier way

    Background checks are a commodity. Any reputable company will work just fine; just don't overpay for the commodity. Zillow does them although they missed that a tenant I ultimately selected had warrants, so either it wasn't in-depth enough or the timing was off. I've used TransUnion SmartMove as well. I like Zillow because everyone knows Zillow and the tenant pays THEM to do the background screening for me.

    Ultimately the screening you should be doing (after the background check) should be on your own. If someone gets close enough that I would select them (e.g. all my hard criteria has been passed -- they have a job, they can afford the place, no problems with credit, no criminal/eviction/bankruptcy problems, et al), I then like to perform a soft check on whatever the internet provides me about this person. Usually this means Google, FB, Twitter, Instagram, etc. Usually these are indicative of how someone spends their day and how they feel about things in general. If they spend all day posting nonsense, complaining, etc., it just gives you more information about who this person is, good or bad. You can also check out pictures and look how people photograph themselves in their own home. Is it clean? Does it look like a mess? Usually indicative of the personality of a person and how they live their life. Sometimes even confirming someone is on LinkedIn in their job can be a nugget of information.

    1Reply
  • Aigo Pyles
    Flipper/Rehabber · Memphis, TN · Member since 2020 · 758 posts · 285 votes
    5y

    Next applicant. 

    1Reply
  • Joseph McCrillis
    Member since 2019 · 43 posts · 15 votes
    5y

    @Alex Kovalenko

    Personally I would not only move on, but treat him fairly according to fair housing and kindly tell him, if he changes his mind he is more than welcome to finish the required paperwork to see if he is qualified.

    He doesn’t have any reason to be stable. No job. No partner. And worst no respect for you and your requirements.

    He’s might be equally controlling once he is a tenant. Don’t let desperation make the next 12 months a headache that you can’t escape.

    Are you marketing as well as you can? Maybe you can expand your pool of applicants and if you can’t, I would just keep looking for that closer to perfect fit.

    Whatever you choose, good luck!!

    0Reply
  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    5y

    I think you can still do a check with a name and address. I had a couple of these types before, it was not good news as I recall. Nothing specific was shown other than this address is associated with fraud. So that's a next dealio. 

    0Reply
  • Steve Armstrong
    Investor · Prospect, KY · Member since 2017 · 62 posts · 34 votes
    5y

    @Landon Bleau. I agree with you. Find another tenant.

    1Reply
  • Ben Riechmann
    Investor · Cleveland Heights, OH · Member since 2017 · 128 posts · 73 votes
    5y

    I find that in screening those that refuse to do a background check are part of the screening process.  If they are not willing to do so I have just eliminated some people that could be headaches later on.  I am also not big on those that want to pay all in cash months in advance, as many are trying to get by the screening process and get you to move them right in without due diligence.  Always do a background check, many sites make it easy to do, and have the tenants pay.  I used to pay, but I now also use this as a screening for those that are good at budgeting and really interested in the place.  Landlords that tend to get out of it and say it's because tenants are so bad, I often find when I diagnose how they did there business, they did not have proper systems set up.  This does not mean a bad tenant will not slip by, as they will, but you can set up systems to greatly lower the chance of this.  Do not take tenants that will not do a background check.  It will save you soooooo much trouble later on!

    1Reply
  • Randy E.
    Rental Property Investor · Durham, NC · Member since 2014 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @JD Martin:

     Someone who is that uncooperative now, imagine what they're going to be like several months from now when they now occupy your property.


    Originally posted by @Joe Splitrock:

    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.

    This is exactly what I thought when I read the 1st post. If the other person is evasive and uncooperative before they move in, that person is not going to become more cooperative and easier to get along with four months later.

    I would kindly tell him I will process his application when he completes it. If he doesn't complete it (meaning he agrees to the background check and provides you with the information you need to run it) then you can't review it.

    A tenant with a difficult personality is not fun to deal with.

    1Reply
  • Daniel Fitzroy
    Member since 2019 · 110 posts · 80 votes
    5y

    @Alex Kovalenko

    I would say sorry absolutely not. They’re either hiding something and if they are too stubborn to pay a 25 dollar fee for a background check I wouldn’t put my business at risk like that. If it were me I would very kindly say I can’t rent unless we run a background check and ide be patient and keep waiting for another person. But that’s just my opinion. Goodluck!

    1Reply
  • K Pedersen
    Rental Property Investor · Houston, TX · Member since 2021 · 2 posts · 2 votes
    5y

    @Alex Kovalenko pass. Hard pass. I have owned and leased homes and been suckered. I paid in months of them squatting without being able to remove them. Meanwhile mortgage still must be paid. I paid with them trashing the house and not being able to stop them.

    I cannot emphasize enough- check ALL references. Pay for background and credit check services. This is business not a charity. This is your most valuable asset and it can become a huge liability if managed poorly.

    2Reply
  • Ryan KellyBusiness Member
    Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
    5y

    @Alex Kovalenko just ask yourself "What would a professional property management company do?" If you aren't doing the same thing, you're asking for trouble.

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    2Reply
  • Sally FairchildPro Member
    Investor · Newport Beach, CA · Member since 2016 · 106 posts · 84 votes
    5y

    @Alex Kovalenko

    Oh hell no!

    0Reply
  • Mike Lorence
    Rental Property Investor · Boca Raton, FL · Member since 2019 · 70 posts · 42 votes
    5y

    Do NOT walk.  RUN the other way.  :)

    0Reply
  • Jose EstradaPro Member
    Flipper/Rehabber · Chicago, IL · Member since 2021 · 19 posts · 4 votes
    5y

    @Alex Kovalenko as a landlord of the property that I'm in i rather have a unit empty for a month or two, than hustle to fill it just to end up with an eviction notice a few months later with no income, damages and a huge headache.

    You have to protect yourself and a good way is to make sure you have checked you're requirements for your tenant.

    0Reply
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