Tennessee Realtor State Practice Exam

What is one of the responsibilities of residential property managers in Tennessee when dealing with prospective tenants?

1. Conducting credit checks

2. Checking references

3. Performing background checks

4. Collecting security deposits

The correct answer is: Checking references

One of the key responsibilities of residential property managers when dealing with prospective tenants is checking references. This process involves verifying the tenant’s rental history, which helps property managers assess a potential tenant's reliability and suitability for the property. By obtaining information from previous landlords, property managers can gain insight into the tenant's behavior, payment history, and how well they maintained the property during their previous tenure. This step is crucial in ensuring that the chosen tenant is responsible and likely to honor their rental agreement, reducing the risk of potential issues once the lease is signed. While conducting credit checks, performing background checks, and collecting security deposits are also important tasks in the tenant screening process, checking references specifically helps to validate the anecdotal evidence of the tenant's past behavior and reliability, thereby informing better decision-making.