Reference checks on potential tenants - by PM's and self managed

I'm curious, what do PM's actually ask when checking tenants past renting history, and what do self managers ask.

What is the protocol, I believe it has to be a formal request in writing/email. An agent's email is usually obvious, but how does a self manager prove who they are and be taken seriously. An owner can be confirmed by checks, but how to confirm the person requesting info is the owner - unless the email is their actual name (which is not a 100% proof) or the reply is snail mailed to the owner?

My PM when negotiating with last tenant over bond issues said if they could come to an acceptable agreement he would give tenant a reasonable reference if asked. What the "bleep"! They were not bad, but weren't good either. I would not give them a good reference, but happy to give them an accurate/factual one and let future PM's form their own opinion. So, by my PM telling me what he said to ex tenant it got me wondering how accurate the references are that are given by others ....and possibly my next tenant! The only time I can see that a PM may want to BS about a tenant is if there is the risk (or situation) where tenant may not move out at end of lease or trying to evict a tenant during lease. Otherwise, why BS?

What do PM'S and self managers ask?

After thinking about it this is what I would want to know:
  • How long did the person/s rent through your agency/off you.
  • Was anyone else living/sharing the property - to get a picture of situation, no other names needed.
  • What type of property? (if an apartment, would they be as good in a house - grounds maintenance etc!)
  • Was there any notice to remedy a breach given? What for? How many times? How recent?
  • Any other issues that you had with them?
  • Would you rent to them again without hesitation?
There are probably a few others I have not thought of, and not sure if any of these delve into privacy issues.

I am a bit sus if someone says "I was renting a friends granny flat/or flat downstairs, therefore no reference from other than friend. Been caught out on that one with first tenants - a real smart ***, think they were on Centrelink, never worked (I can't remember what BS was said about employment). Same with a tenant who had no rental history as he had been renting with a mate, not on the lease, had OCD (obsessive-compulsive disorder) and therefore would be spotless in the house. Yeah right, tick that one off not to fall for again. :cool: My best tenants from what neighbours told me was a Kiwi couple who had just moved to Oz, no jobs as yet but good potential, he a carpenter, her office admin. References checked out good from past employer, I was going to ask for 3 months rent in advance, they offered 4 before I could suggest - took 3 off them.
 
The standard here is faxing/emailing over a potential tenants signed privacy statement, then chasing to get a reference from the other agent.

I have been given false references before, a few I've luckily caught on NTD, others not so much :mad:

Regardless if I don't want to be stuck with the tenant, I wouldn't give a false reference and I also wouldn't bring personal feelings into the equation either, just facts.

The questions you've outlined are accurate. Also rent paid, bond refunded in full/based on the tenancy to date do you feel there would be many issues, damage throughout tenancy, rental due date, average date paid etc

Work obviously their income, employment type, length of employment, reliability and how secure their position is.
 
what do self managers ask.

I personally check all referees by direct telephone conversation to satisfy myself that what I'm being told on paper is actually correct ( ie. employer and regular income)

Some tenants don't have much rental history (young or newly arrived), however, if I have personally met them and can verify their facts and have sufficient background details to pursue them should they default then I am generally satisfied.
 
The standard here is faxing/emailing over a potential tenants signed privacy statement, then chasing to get a reference from the other agent.

Ahh, the old privacy information release form - hadn't though of that. That solves a few of those issues. Checking employment and referees etc is obvious, I was thinking mainly about info from past renting. I actually just looked at an on line application form from a major franchise, covers all the things I had thought of plus a few more. For self managers I assume you write up up your own application form and privacy disclosure statement or more more or less copy an agents.

Verbal or written? Someone providing info in writing may think twice about being less than accurate, whereas a phone conversation - no proof of what was said if any dispute, or if actually speaking to the right person. However, when speaking to someone direct you can often form an opinion on the degree of what is said - with reservation or speaking enthusiastically of someone. An employer is probably going to to the right thing by an employee and give a reasonable reference even if only a borderline employee, whereas a PM might be a bit more honest.

Some tenants don't have much rental history (young or newly arrived), however, if I have personally met them and can verify their facts and have sufficient background details to pursue them should they default then I am generally satisfied.
Judging a persons character if meeting them personally is a big advantage. The advantage is proportionate to a persons life experiences too. I had 2 PM's from my last agency aged late 20's - 30ish (one a director) bring an interested couple around to look at house. They were pleasant and tidy, but reminded me of many (not all ;)) who live in DOH areas, and possibly receiving Centrelink benefits and not working. Both PM's felt they were good candidates and would offer them another property if I was not interested. I later found out that a TICA check revealed rent default against the woman! The risk of relying on other peoples judgement!!
 
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In Vic CAV actually has application forms, leases etc. on their website which private managers can use and access for free. Some other states might have that as well.

NTD/TICA are great; I just wish there was only one and everyone used them.
 
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