A reference check is a form of investigation conducted on an applicant to determine the person's suitability for getting an apartment or other type of lease. Depending on the chosen method, this might include asking neighbours, friends, or relatives if they have any knowledge about the individual. You may also ask them questions that can only be answered with personal information such as their current address or phone number.
Reference checks are a way of filtering out bad applicants. They give you information about an individual that you would not otherwise be able to get. It is a good idea to use them for all new tenants.
After conducting this type of investigation, you could learn that the applicant has too many debts or has been behaving in an antisocial manner. This information can help inform your decision about whether or not to rent the apartment to them.
Reference checks are not mandatory, but it is a good idea to have them conducted before you make an offer. For people who are going to be renting an apartment, they should be common practice. This is especially applicable in the case of beginning tenants who might not be able to produce a reference check upon request.
Reference check paperwork is easily confused with credit checks, which only use numbers and can often prove misleading.
There are a number of questions to ask a potential tenant when you are conducting a reference check on them. Below, we have provided a few questions that might help you find out if the individual is someone you feel would be an ideal tenant. Please note that these may or may not apply to all potential tenants and they are not exhaustive. It is important that reference checking is done thoroughly before entering into any agreements with another person.
• Has the tenant provided you with an up-to-date copy of their credit report?
• Do you have a good understanding of how long the tenant has resided at their current address?
• Are they on any government benefits?
• Would they be able to pay the rent without the need for government benefits paid directly into their account?
Taking on a tenant who relies heavily on these benefits will always present problems for both parties, and is not recommended.
• Do you believe that the tenant will be able to take care of themselves?
• What are their financial obligations?
• Have they made any recent changes in where they live for family reasons or work?
• Are there any issues with his/her credit or income history?
These questions should give you a balanced view of the tenant and help to maximize your chances of selecting the right person.
