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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  • Emma Powell
    Investor · Orlando FL · Member since 2018 · 64 posts · 69 votes
    5y

    I have NEVER had someone refuse a background check! I have had someone yell at me that his tiny dog didn't need a pet fee or deposit: if someone shows me that side of himself on the screening call, I am done. If they refused background check, I would be done. I am always polite, respectful, follow the law, and follow industry norms. When people disrespect me or refuse to follow simple industry standards, I move on. I have six kids, I don't need more by tenants who act like kids! I only buy rentals in place with competition for units, so I feel fine moving on to the next applicant.

    1Reply
  • Isaac S.
    Member since 2018 · 563 posts · 562 votes
    5y

    FYI....take their advice!!!!

    No background check no rental!

    I have run hundreds of applications, and after you eventually come across a murderer that was just released from prison, or someone on a sex offender registry, that you stood face to face and thought "this guy seems ok"....you will then truly understand why you always stick to application process!!

    I guarantee the first time you don't do the credit check, will be the first time you get kicked in the teeth(metaphorically, but in some neighborhoods, literally)

    1Reply
  • Scott Lieberg
    Investor / Principal, · Star, ID · Member since 2016 · 47 posts · 24 votes
    5y

    Move on. If he is a problem now when he isn't your tenant.... Keep looking.

    0Reply
  • Taylor L.
    Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    5y
    Originally posted by @Nathan Gesner:

    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.

    Don't Federal Fair Housing Laws protect tenants from discrimination based on familial status? Discriminating against divorcees certainly seems to go against that. Not a lawyer. 

    0Reply
  • Kevin B.
    Charlotte, NC · Member since 2017 · 17 posts · 11 votes
    5y

    @Alex Kovalenko wish him good luck in his housing search

    0Reply
  • Kevin B.
    Charlotte, NC · Member since 2017 · 17 posts · 11 votes
    5y

    @Kevin B. Also, he seems to think he’s in control. That’s equally as big of a red flag for me.

    0Reply
  • Ron Fletcher
    Leclaire, IA · Member since 2016 · 161 posts · 130 votes
    5y

    @Alex Kovalenko

    Too fishy. Reject.

    0Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    5y

    Don't Federal Fair Housing Laws protect tenants from discrimination based on familial status? Discriminating against divorcees certainly seems to go against that. Not a lawyer. 

     Familial status has to do with children, not spouses or unmarried couples.

    0Reply
  • Daniel Chappell
    Realtor · Kyle, TX · Member since 2020 · 7 posts · 1 vote
    5y

    @Alex Kovalenko the prospective tenant may not be applying for a job, but they are applying to take control of a valuable asset that they don’t own. An asset that is owned by a business (because that’s what you are, a business owner). A lender wouldn’t lend you $100,000 without learning a bit about your background. Why should you lend them a $100,000 asset without doing the same due diligence?

    0Reply
  • Ben Miller
    Member since 2008 · 30 posts · 23 votes
    5y

    I agree with most, hard no on this one.  Stick to your criteria.  Good luck! 

    0Reply
  • Nadir M.
    Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes
    5y

    @Alex Kovalenko

    I would move on. It’s that simple. Giving you a hard time now means a hard time later on.

    0Reply
  • Lori L Miller
    New to Real Estate · Dallas, TX · Member since 2020 · 11 posts · 2 votes
    5y

    @Alex Kovalenko. I would think this would not be an option but a requirement. There’s no other reason to refuse a background check except that he has something to hide or something he doesn’t want you to see, yeah MoveOn to the next one

    0Reply
  • Account Closed
    Real Estate Investor · Dallas, TX · Member since 2016 · 38 posts · 17 votes
    5y

    Establish firm metrics for tenant eligibility for each of your properties (documented minimum income, minimum credit score, Background check requirement, etc) and be sure to enforce them consistently - never make an exception. If you follow this policy closely you'll rarely regret agreeing to a tenant that turns out to be a problem. And any applicant that refuses to submit to a background check is just a massive screaming red flag, FYI. 

    1Reply
  • Regina Lemons
    Member since 2021 · 3 posts · 0 votes
    5y

    You have a process in place that protects your assets. Don't rush into renting, you'll lose money, time, and momentum. This is a non-issue, don't let it be an issue. My best renters where those who told me upfront what I would find on their background check because they owned their past, and where accountable for their futures. Stay focused on your goals!

    0Reply
  • Jaquetta T Ragland
    Real Estate Agent · Winston Salem, NC · Member since 2014 · 486 posts · 303 votes
    5y

    @Alex Kovalenko no thanks. If he doesn’t do a background check with you, he’ll eventually have to do it with another landlord.

    1Reply
  • Adam Oh
    Member since 2019 · 1 post · 0 votes
    5y

    @Alex Kovalenko move on to the next one

    0Reply
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    5y

    Judgement call .  Personally I would just keep showing.

    0Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    5y

    If this came out before you showed him the place  good for you!  If not one way to avoid this issue is to have pre-screening questions and an explanation of your process upfront. No argument just don't make appointments toshow the place to an someone unco-operative or doesn't meet minimum criteria, for open house they can come.  And your biggest issue is his unwillingness because that will carry forward to all interactions.

    0Reply
  • Joel Betances
    Member since 2018 · 20 posts · 6 votes
    5y

    @Alex Kovalenko

    Move on to the next tenants if they are refusing background check and trying to make you feel guilty by doing one( saying it is not a job).

    No tenant is worth the risk. Do a proper background check and your chances of anything going wrong is reduced.

    Especially in this like these where there’s rent moratorium.

    0Reply
  • Jeshua Patrick
    Rental Property Investor · Charlotte, NC · Member since 2017 · 298 posts · 232 votes
    5y

    @Alex Kovalenko I recently bought a property from a little old lady who rented her property to someone who seemed like a nice person. Things went well for a while but then he tried to convince her to sell him the property at a discount. When she refused he locked her out and quit paying rent claiming that “she’d made plenty off of him already and didn’t deserve to make any more off him”. I ended up paying her less than he offered her because I couldn’t see inside and I am on my way to eviction court. A simple background check on my part revealed that he had a prior eviction and her whole problem could have been avoided with a little basic screening.

    0Reply
  • Daniel SmythPro Member
    Rental Property Investor · Rockford, IL · Member since 2019 · 471 posts · 342 votes
    5y

    @Alex Kovalenko

    No worries!

    Ge will also say he is not working for you, and will pay when he feels like it.

    I would not consider renting to anyone refusing a background check. Might as well just take the front door off and put a basket on the sidewalk for a free-will offering!

    This is the guy you would need an extensive background check. This means you may wish to actually visit hit current and last residences and the last 6 jobs of this person. I would also require a proof of funds letter from his established bank, and require that he be a member of such bank fir more than 5 years!

    Baulking at a mere background check tells you more than the words out of his pie-hole.

    There is more of this guy that he wants you to know about.

    My rentals are worth over 300k. I actually allow my tenants to borrow that value for a monthly fee. That requires a background check the same as if I just wanted him to hold 300k cash for me.

    The background check is just one tool to help weed out the tenant that will take your investment and live for free as he ruins it.

    [email protected]
    1Reply
  • Martin NealPro Member
    Rental Property Investor · Chicago, IL · Member since 2017 · 293 posts · 383 votes
    5y

    @Alex Kovalenko first red flag. Tenant dictates to you how and terms of their agreement. Run away.

    1Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    5y

    @Alex Kovalenko simple move on, why waste your time,,,,,,, 

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Alex Kovalenko:

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

    First off you dont need permission to do a back ground check.. but suffice it to say red flag. 

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    0Reply
  • Katie MillerPro Member
    General Manager, Publishing at BiggerPockets · Denver, CO · Member since 2017 · 459 posts · 642 votes
    5y

    @Alex Kovalenko to reiterate the amazing responses already -- hard pass!!! say no and don't look back. A tenant that refuses anything now will absolutely be a pain to deal with later on. Hopefully you can find a back up that complies with your rules!

    Podcast Guest on Show #217
    1Reply
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