Reference checking etiquette

[Asinvari]

Very basic question from someone just starting out in the rental world. The first people we got enquiring about the place seem lovely, credit check was fine so the only thing I'm left with is reference checking. They don't finish their existing tenancy for 5 weeks, but have supplied the name of the rental agency on their application form. Is it bad 'form' on my part to phone that agency & ask if they've been good tenants, I figure if they didn't want me doing that they should have said something, i.e. if they haven't told the agency they won't be renewing the lease.

They have provided two other referees, but I have no idea what connection they are to the applicants or what questions I should ask them (are they nice people, do they pay their bills...).

[drelly]

Just ring them, that's what references are for. A good question is: "Would you rent to them again?".

[Niall]

Give them a call for a chat. They could already be expecting the call, and if they are not, you have given them a heads up that their rental will be empty soon

When calling random references, ask them how they know the tenants.

Google the tenants name also as it throws up interesting results some times. Ensure to check the tenancy tribunal database also here.

All the best,

Niall

[Asinvari]

Thanks, those are good suggestions. I had thought I would get them in trouble by possibly telling the agency they're not renewing, but in hindsight I suppose that's silly.

[Perry]

There may be a need to ascertain if it's
OK with them to use their provided
reference details to do the checking
that you're planning.

My tenancy application form is explicit
that the information provided will be
used to carry out credit and other
checks, such as references. It further
asks the applicant to actually tell the
referees provided that I may call, as
well as tell the referees that the
applicant approves the referees an-
swering questions relevant to any
Tenancy application.
.

[Asinvari]

Good suggestion Perry. Because this is our first rental, I'm relying on standard DBH forms, but I'll start to tailor them for future use with suggestions like this.

As it turned out, the Agency reference they gave was glowing & there was no issue at all with having phoned, so I'll feel a bit more confidant next time.

[SuperDad]

Well done Asinvari.

How long have the tenants been in their current property? You should be looking to get references for all of the rentals thaey have had for at least the previous 3 years. This, more than anything, is the best predicter of how they will be in your property.

If you don't have this much infor, don't be afraid to go back to the tenants to ask for more info.

Regards,

Paul.

[revdev]

Good suggestion Perry. Because this is our first rental, I'm relying on standard DBH forms, but I'll start to tailor them for future use with suggestions like this.

The DBH application form definitely needs doctoring...from memory it doesn't even ask date of birth! <shakes head>

[Asinvari]

I'm a bit stuck on checking past the last lease SuperDad. They came to NZ six months ago from the States after an extended time abroad, so the last lease is the only one available, & they were so glowing that it seemed enough. What can be done for people who've only just arrived in the country, presumably its worth the time & energy to try & contact overseas landlords?

I was really impressed with the DBH website, they provide so much information for free. Even if their documents do need fine tuning, its an excellent service to provide for new landlords, especially in terms of making sure you cover all the legal requirements. I wouldn't have known where to begin without them.

[Perry]

Nice to see the plaudits mentioned for DBH.
Credit where credit's due. However . . .

When you look further in the PT forums, you
may find that - as with so many things - the
shine on your perception of the DBH could
become a little tarnished when the really
difficult interpretation dilemmas need con-
fronting and the DBH call centre staff seem
flummoxed or even contradictory.

Statistically, it will happen to you, one day!
That said, don't be put off; just keep a little
strength in reserve for when the brown
stuff hits the fan.
.

[Asinvari]

Thanks for the warning Perry, interpretation issues are always the difficult ones. I work on the theory, with a lot of things in life, that if you do your homework properly & take sensible precautions, you lower your statistical chances of bad things happening considerably. Fingers crossed that will apply to my property management efforts too, but I'm sure this will be the first place I come to when statistics fail me...I'm also a firm in getting advice from those more experienced.