Reference check- how does it work?

Discussion in 'Property Management' started by Peter P, 20th Jan, 2017.

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  1. Peter P

    Peter P Well-Known Member

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    What happens during a reference check?

    Our tenants moved out recently and the PM managed to find a new tenants (single mum and 1 child). The PM said the the reference check was "perfect"- New tenants always paid on time. I didn't want to question him any further about the fine details about how he did the reference check in case he thought I didn't believe him.

    So what really goes on behind the scenes during a reference check?
     
  2. Peter P

    Peter P Well-Known Member

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    Also, our new tenant is on the disability pension (PM said the tenant can walk normally). Is there anything I should be concerned about here?
     
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    tenant asks a mate, can you please pretend that I rented your house for the past 6 months with no problems. Sure the mate says.

    Agent rings the mate. Do you know XX - ah yes he was the perfect tenant for the past 6 months.
     
  4. WattleIdo

    WattleIdo midas touch

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    Having just been through all this:
    The propspective tenant lists a couple of non-family referees such as old friends or work mates and the PM rings to ask whether you're bona fide. This means that these people have to like you enough to take these phonecalls!
    They also often ask for a work referee and RE contacts so they can find out if you paid on time, took the bond and whether your pets were a problem.
    They often ask for bank statements o_O and payslips an d if you don't have a payslip they want a letter showing offer of employment.
    It's actually a bit OTT so if they've made it this far, they're doing well and you're on track to gaining a good tenant.
    As a landlord I insist on all the checks.
     
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  5. fullylucky

    fullylucky Well-Known Member

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    PM asks the previous PM to send over tenant ledger which is a list of dates when the tenant paid and how manys days overdue was it when they paid. Aso asks basic questions like was he/she a good tenant? would you rent to him/her again.
     
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  6. D.T.

    D.T. Specialist Property Manager Business Member

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    Your story continues with:
    PM does a title search to verify that mate doesn't actually own property.
    Tenant gets added to internal database in the naughty column.
     
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  7. Peter P

    Peter P Well-Known Member

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    Should landlords be siting these ledgers/banks statements etc when accepting a new tenant?
     
  8. WattleIdo

    WattleIdo midas touch

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    You have to manage your PM - asking questions is normal, it doesn't mean you don't trust them. Having said that, trusting them is not necessary. If you do, great, but you have to be able to communicate in a business like manner, not as their best mate. It's just questions -no need to load it all up with emotions and suppositions.
     
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  9. fullylucky

    fullylucky Well-Known Member

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    What if tenant's mate owns a property? What if tenant asks their mate to say their name is of someone who owns a property?
     
  10. gman65

    gman65 Well-Known Member

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    Must be harder than the old days, as it used to be pretty much exactly as Terry described. But that was before PM's used the Internet.
     
  11. Peter P

    Peter P Well-Known Member

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    Just asked my PM about this. He has checked the ledger and previous PM has given them good feedback- always paid on time. Our PM is confident with these tenants.

    Thanks for the feedback everyone.
     
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  12. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    This is exactly why verbal references shouldn't be done. If your PM is doing verbal references only then get rid of them and find a PM who takes you and your property seriously! Verbal references are fraught with danger for this exact reason.

    Generally your PM should be checking bank accounts, past tenancies (in writing from their previous agent), employment verification, a title search and TICA
     
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  13. dabbler

    dabbler Well-Known Member

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    lol....the old days the agents would all be stealing your money ! well, a chunk of them anyway.

    a lot of PMs do not do proper checks either, they basically do not care
     
  14. WattleIdo

    WattleIdo midas touch

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    Apparently you can tell a lot about a person by the quality of their friends.