Get a List of References and Check It Twice

A first time landlord in Jacksonville, Florida has learned the importance of thoroughly screening tenants the hard way. Patty Hill decided to try and earn some extra money by renting out her townhouse. Hill believed she had a decent tenant after checking the references provided and inquiring about the tenant's prior living conditions. Unfortunately for Hill, the tenant had provided bogus references and turned out to be a scam artist. The tenant allegedly cost Hill $3,000 in damages to the property and also owes a former landlord $4,000 in back rent.

Hill had the right idea about screening tenants, but she did not execute this check thoroughly enough. You should never blindly trust the information that a prospective tenant supplies you with. You must do a comprehensive screening in order to protect yourself from fraud. If Hill had run a credit check or simply searched public records, she would have been able to find out about the tenant's history of evictions.

Although you should always ask a prospective tenant for references, you should not rely solely on them. References can be easily fabricated and/or the applicant will only provide references that will paint them in a good light. You need to develop a comprehensive screening program that includes an interview and formal application as well as a background and credit check. This will provide you with information about the prospective tenant's financial situation, rental history and criminal history.