
Noah Goldman
Chief Operating OfficerIn this article
If you’ve ever signed a lease agreement, you know they’re a big deal. And because leases are legally binding, property managers thoroughly screen every tenant before committing.
A critical step in this process is verifying the potential renter’s employment. If a future resident has a steady, reliable job, they’re far more likely to pay their rent on time.
Verifying employment includes contacting employers to gather proof of income and assess employment stability. One way property managers gauge an applicant’s job security is to ask, “What is the probability of continued employment?”
But answering this question is challenging and can feel subjective. As an employer, you can’t predict the future or make guarantees. So how should you respond?
We’re sharing tips on how to answer this question and other common topics that come up during employment verification.
Why Property Managers ask the “Probability of Continued Employment” Question
Property managers want to lease to responsible, financially stable, and reliable tenants. Landlords run a comprehensive tenant screening process for every application—including employment verification.
These checks help property managers and landlords gauge if an employee’s income—and their ability to pay rent—are likely to continue during the lease term. Dealing with late rent payments can be expensive and may even lead to costly evictions, which is why employment verification is so important.
Property managers look at a variety of documents to determine a tenant’s financial health:
- Credit checks
- Background checks
- Bank statements
- Pay stubs
But property managers can only learn so much from what’s on paper, so they often contact potential tenants’ employers to confirm income, gather references, and ask about the probability of continued employment.
Property managers aren’t looking for a promise that a prospective resident won’t lose their job. But they do want some kind of informed estimate that your employee is likely to keep their job for the next year.
Challenges in Answering the “Probability of Continued Employment” Question
If you get a question about the probability of continued employment, you might not know how to respond—you don’t have a crystal ball after all. And even if you plan to keep an employee, they may still lose their job for reasons beyond your control.
“Probability” is subjective, so you may want to clarify your answer by sharing more details. But over-explaining could lead to legal problems, or an employee may claim you violated a mutual non-disparagement clause.
The best way to address these concerns is through a measured approach. Balance honesty with protecting your employees’ privacy while maintaining your organization’s reputation.
So, how can you give a truthful answer and respect your employees while reducing organizational risk? Follow these best practices.
Best Practices for Answering “Probability of Continued Employment”
Answering a “probability of continued employment” question is easiest when you follow a few best practices. These include remaining objective, following company policies, and giving standard responses.
Stick to Facts
Start by keeping it simple and telling the truth. Rather than giving a performance review, focus on the employee’s current status. For example, you might say, “The employee is currently employed full-time and is in good standing.”
Don’t give information that hasn’t been requested—a simple “Yes” or “No” is sufficient.
Avoid Speculation
Don’t try to guess what’ll happen unless your organization has clear policies about probationary periods or contract renewals. Otherwise, your best bet is to state what’s true today, not what could be tomorrow.
Provide Standardized Responses
Answering questions on the fly can be stressful and lead to errors. Having a set of prepared responses can help you avoid mistakes. Rather than coming up with a reply in the moment, fall back on your tried and true—and legally safe—answers.
These standardized responses should use neutral language. Even if your employee is a rockstar, your best bet is to stay impartial. If you’re fairly confident that you’ll continue to employ someone, you might respond, “No reason to believe employment will not continue.”
Consult Internal Policies
Unless a request comes from a federal or state government agency, employers don’t have to verify employment. But responding quickly and fairly to all requests helps your employees and fosters a positive reputation with other businesses.
To minimize liability while meeting legal obligations, your organization may have its own rules about handling employment verification requests. These guidelines might include:
- Direct all employment verification requests and questions to human resources
- Obtain employee consent before sharing employment information
- Only use standard, company-approved language in your answers
- Consult legal counsel for tricky situations
Common Employment Verification Questions and How to Answer Them
Most landlords will ask a series of standard questions during employment verification. Here are some common questions and example responses.
Employment Status
“What is the potential renter’s current employment status?” Answer if the employee is full-time, part-time, or on a contract. Avoid predictions unless your organization has explicit probationary periods and contract renewals.
Job Title and Description
“Can you confirm the applicant’s job title and responsibilities?” State the employee’s official title and a brief description of their duties. If you still have the official job listing, you can refer to the responsibilities there. If your organization has clear career ladders with role definitions, these documents can also help.
Employment Duration
“How long has the employee been in their current position?” List the employee’s start date. If they’ve received a promotion or changed titles since then, share the date they started their most recent role. If they already have a set end date because of a contract, you may share that information as well.
Income Verification
“What is the applicant’s monthly income?” Only share this information if the employee has given authorization and if the landlord has requested it. Many property managers have rent-to-income ratio requirements, so verifying a future resident’s monthly income is critical.
Your answer will vary depending on the type of employee:
- Salaried. Share monthly wages.
- Hourly. Give the hourly rate. Some property managers may want a sense of monthly income. Use the past several pay cycles to calculate an average.
- Contract. Use the contracted rate.
Probability of Continued Employment
“What is the applicant’s probability of continued employment?” Stay neutral and focus on the facts. For example, you might say, “The employee is employed full-time with no current indications of termination.”
In this same vein, property managers may also ask:
- “What is the employee’s attendance record?”
- “Do you foresee any changes to their employment?”
- “Could you share anything you think is relevant regarding this applicant?”
For all these questions, focus on the facts, and keep your answers short and to the point.
Legal and Privacy Considerations
Answering employment verification questions is about more than accurate answers. It’s also about legal compliance and liability. Protect yourself and your organization by keeping these considerations top of mind.
Obtain Employee Consent
Multiple laws and guidelines protect consumer privacy—including employment information. One of the most important is the Fair Credit Reporting Act (FCRA). It requires you to get an employee’s written consent before sharing employment information with third parties.
Always verify that the company reaching out to you is legitimate—scammers might try to pose as a property manager to try to steal sensitive personal data. Consider using a Know Your Business (KYB) service to confirm who’s asking for your employee’s information.
Stay Within Legal Boundaries
The FCRA isn’t the only law that protects consumer data. Additional data privacy laws restrict how and when organizations share personal information. These include the California Consumer Privacy Act (CCPA) and the General Data Protection Regulation (GDPR).
Other laws, such as Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act, bar employment and housing discrimination. Employers and landlords can’t make employment or housing decisions based on protected categories like:
- Race
- Sex
- Religion
- National origin
- Disability status
Don’t share any employee information regarding these categories, which could put both you and the property manager into legal hot water.
Protect Against Liability
Use neutral, fact-based responses. Unless you have absolute certainty, don’t make any statements about the future. Focus on providing accurate, current information, and don’t forecast.
Keep written records of all employment verification requests. You should store all:
- Incoming requests
- KYB checks on requesting entities
- Communications with requesters
- Employee authorization
- Responses to external entities
A paper trail can help protect your organization if you receive allegations of false or misleading information.
Example Template for Responding to Verification Requests
If you have written permission from the employee and have done a KYB check, use this template to craft an employment verification letter.
Customize it to suit your organization’s policies and the request. Ideally, a human resources manager would write and send this letter.
[Your organization name]
[Your organization address]
[Date]
[Name of requester]
[Property management company]
[Property management company address]
Dear [Requester]:
This letter serves as [employee name’s] verification of employment with [Your organization name].
The employee’s name is [full name], and they are currently in good standing with [your organization name]. Their tenure began on [date.] Their job title is [title]. Their current [hourly/monthly/annual] wage is [amount].
If you need additional information, please contact [Contact name or department] at [phone number] or [email].
Sincerely,
[Your name]
[Your title]
[Your organization name]
Answer “Probability of Continued Employment” Confidently
Responding to a question about the probability of continued employment is delicate. You need to give an honest answer while protecting your employee’s privacy and your organization’s reputation. To balance these priorities, stick to facts and avoid speculation. Keep responses brief and straightforward.
Always refer to and maintain clear processes for responding to employment verification requests. Keep a set of standard answers to simplify the process and reduce liability.
These tips should help you respond to employment verification questions easily and accurately.
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