1 in 10 tenants admitted to lying on their applications. They may have concealed damages, broken their lease, or refused their security deposit refunds.
Checking everything your tenants give you is the best way to avoid these issues. Verification is now even more important than credit score checks.
Reference letters show that a tenant isn't the type to lie or fall behind on payments, but they need to be checked. They can be as full of lies or faults as any other part of the application process.
Read on to learn what to look for in a landlord tenant reference letter.
Who Wrote the Landlord Tenant Reference Letter?
A tenant can get personal references from almost anyone, including:
- Family members
- Friends
- Former or current co-workers
- Professors or mentors
- Former landlords or property managers
When you find out who the letter is from, consider how reliable the reference is. Have they been in contact with the tenant enough to speak about their character and financial stability? Could they be biased due to family relationships?
What's The Reference's Contact Information?
Get contact information from all of your tenant's references. It should ideally be included in or delivered in place of the letter.
This allows you to follow up with them. Ask if everything in the reference letter is true and if there's anything they'd like to add.
Is Their Discrimination?
A landlord tenant reference letter needs to follow all of the requirements of the Fair Housing Act. There can be no language that discriminates against a former tenant based on:
- Race
- Color
- Country of origin
- Family status
- Sex
- Sexual orientation
- Disability
Negative statements also need to be backed up with facts. Claims about damage need to be supported with photographs, and warnings about behavior need to be backed up with warning letters or emails.
Any reference letter that speculates, exaggerates, or discriminates should be thrown out. It's not helpful, and getting rid of it protects you and the reference from getting in legal trouble.
Does It Meet the Requirements of My Rental Application?
References should be part of any landlord's screening process, but you get to decide how they fit in. How long do you want them to be, and how many of them do you want?
Let new tenants know your requirements when you advertise the property and in the application. Tell them how you'll evaluate their references and whether you prefer to call them or speak to them directly. If they can't meet your expectations, move on to the next applicant.
Does It Show The Tenant's Rental History and Character?
The most important part of any reference letter is describing previous tenant behavior.
Do they pay rent on time? Have they ever damaged property? Do they have excessive noise complaints?
Look at how all of their reference letters describe the way how they've behaved in the past. If the same complaints show up in all of them, they may not be the best prospective tenant.
Where Can I Get Property Management Help?
A landlord tenant reference letter lets you get to know a tenant before you approve them. It lets you know who they are and how they behaved in the past.
Consider if a reference is reliable and unbiased. Make sure they didn't use any discriminatory language or make unsupported claims about the tenant's character. Look for their contact information so you can follow up with them.
Use the letter to evaluate the tenant's character. Decide if they'll be safe and reliable and pay rent on time. Get help by contacting us for Las Vegas property management today.