Are your tenants running background checks on you? It's a new trend.

Mike

THat's a new but not surprising angle given the market and what we hear about tenants in homes where the landlord is in trouble. BUt how can someone actually do a true background check without written permission? That said, it certainly does pay for the prospective tenant to ask some pointed questions before they jump adn sign a lease.

Jeff

I think it's a good idea, but our rental market is so hot here I bet it'll never catch on.  After all, when three couples show up at the same time to view the house, and at least two people start crying about how badly they want the home, I don't think they're going to raise any fuss.

Mike, the number of comments you are getting shows what a hot topic this is. Every single Tenant prospect I work with seems to ask me about the history of the ownership, and if it's financially sound. Craigslist has been in the news for scams in the St. Petersburg | Tampa Bay area several times. I find the question very legit, but checking the public records for any pre-foreclosure filings should suffice, I wouldn't recommend ever letting a Tenant have Landlord's detailed, personal information.

I don't think a background check is actually enough I think you mean a reverse credit check on the landlord. I actually like this idea because there are just too many landlords that are taking the money, not making the payment & the tenants are hassled by the sheriff.  I've spoken to 2 tenants in the last few months with this problem.  The law in IL says that you can't force a landlord to make his payments but why give them money when they won't pay & then you're new landlord will be the bank?

I sneak a peak on the recorders office to see if there is a lis pendens going on also.

Mike:

How do the tenants obtain the owner's SS#?  I sure wouldn't give it to them and I would not allow my property management company to give it to them.  But, I don't blame tenants for being concerned when you hear about scams like the one you mentioned.

The real issue is that even if foreclosed, if the lender hasn't completed the foreclosure process, the owner still owns the property. As such can collect money. When the deed transfers different story. Ethically not terrific but that is what happens.

Mike - There are so many scams out there and so many owners having financial trouble, that I can see this making sense.

I think it is a wise thing to do.  My house is being foreclosed on, but my landlord has been very up front with me.  

Mike, tenants definitely should verify that the landlord they are renting from is the owner of the property...but as far as tenants being "in the darK" about their home being foreclosed, I don't believe that. They get the same notices from the trustee that the landlord gets when the home goes into foreclosure. :)

Leilani

Hi Mike, in Virginia?  I thought that was only happening in Florida?  lol

It might be a little awkward and not typical but it's a great idea. There is so much of this going on that a tenant should protect themselves also.  We rented through a Realtor though and I asked her to check if there were any notices filed against the property.

Hi Mike,

That is crazy!

Ihave heard the scam where an "out of town owner" collects the deposit, but never where they are so bold as to rekey the house and move people in...

Phil

I actually encourage anyone who asks my professional advice to absoultely check out your landlord for that exact reason. I can't tell you how many times tenants have gotten burned by crooked landlords. Plus the perponderance of rental SCAMS make it a very dangerous rental environment nowadays.

Mike, whenever I'm asked, I always advise potential tenants to check and make sure that the owner of record is the one they are dealing with, and to confirm the home is not in active foreclosure.  Wayyyy too much of this kind of scam going on, and unfortunately unsuspecting tenants are oftentimes the victim.  great post!