One of the biggest challenges landlords face is finding quality tenants. While most landlords expect potential tenants to provide them with a list of references, it’s important that you understand how to get the most value out of this process.
LeaseOurHouse.com helps connect landlords with quality tenants. Still, you will be expected to screen those tenants in order to decide if they are the right fit for your rental property.
In this article, we will explore the 4 types of references that, as a landlord, you will commonly encounter when listing your home, apartment and condos for rent.
1. Understand the Types of References
There are many different types of references you will encounter when searching for tenants for your home for rent. We like to break them down into four specific categories.
Income references are the best way to validate a tenant’s income, how much money they earn, and whether they can afford the property they are looking to rent. You can use an income reference to check how truthful a tenant was. One way to accomplish this is to search online for both the company and company phone number as opposed to calling the number that the tenant has provided to you. This will show you whether a tenant provided you with legitimate credentials, or tried to get a friend to lie about their employment situation.
Remember, you want to find a tenant that can afford to pay their rent on time over the course of a 12-month lease.
Professional references often include colleagues, employers, and other professional individuals who fall out of the personal sphere. Much like income references, you want to use professional references to validate the integrity of a tenant. Most tenants provide supervisors, managers and or colleagues. Again search online for a company number and call the company the reference works for and ask if the supervisor/manager they listed works there and confirm their position and ability to provide a reference. Speak to them and try and find out additional information that will shed light on the tenant’s character.
Personal references should be used to get a glimpse into the type of people that a tenant is friends with. While it won’t tell you everything about a tenant, many times you can determine the character of a tenant by the type of friends they associate with. You can also ask the personal reference where the tenant works as a lot of personal references are caught off guard by this question. Again this helps you eliminate tenants that are not honest, trustworthy and not suitable for your home for rent.
Former Landlord Reference
Former landlord references are arguably the most important reference you can contact. Like you, they once screened the tenant you are considering. Keep in mind, you want to try and contact former landlords who are no longer renting to a tenant. Current landlords will sometimes say what you want to hear in order to get rid of a problem tenant.
Still, unlike the other types of references, a former landlord understands the business side of renting and will likely answer any relevant questions you may have. You want to ask former landlords about a tenant’s habits, if they were respectful of the home for rent, paid their rent on time, and probe for any other specific information that will help you make your decision.
About LeaseOurHouse.com – Your #1 Homes for Rent Platform in Ontario
It’s important to understand the different types of references when it comes to finding the right tenants for your home for rent. You’ve spent a lot of money buying, renovating and protecting your valuable properties.
LeaseOurHouse.com helps you find high-quality tenants through our new, interactive rental platform. Our platform helps landlords like you rent your properties to tenants in Toronto, Oshawa, Ajax, Orillia, Hamilton, Cambridge and throughout Ontario.
Our rental website requires tenants to sign up and fill out a full application, helping eliminate those who aren’t serious. Stop wasting your time on bloated classifieds. Visit LeaseOurHouse.com today if you want to simplify the process of finding high-quality tenants.