HUD Celebration of Fair Housing Month Focuses Attention on Tenant Checks and Disparate Impact

In April of every year the Department of Housing and Urban Development (HUD) celebrates Fair Housing. This year HUD is reaffirming Fair Housing and its willingness to pursue litigation over those denied housing; and the impact on property managers and landlords could be significant.

Every year in April the Department of Housing and Urban Development (HUD) celebrates Fair Housing. As a part of their celebration HUD reaffirms its “willingness” to pursue court action in cases over individuals or families being denied housing due to disability or other reasons. It is incumbent on property managers and landlords to be legally and lawfully compliant with tenant screening policies and practices or face the consequences.

A review of recent prosecutions shows confirms that HUD is making good on its promise to pursue cases where tenants with disabilities have been denied companion animals, and families denied housing on occupancy limits. A new ruling also clarifies that, while a policy may not be discriminatory on its face, a landlord may still be prosecuted if that policy causes a more subtle, “disparate” impact. http://www.american-apartment-owners-association.org/property-management/latest-news/fair-housing-month-good-time-review-leasing-policies/

Disparate impact is a challenging legal term that will continue to confront landlords and property managers. Further, the legal landscape governing the use of public records continues to evolve and disparate impact will continue to be a large part of the conversation, especially in terms of renting and tenant screening.

Disparate impact is a legal theory that has been aggressively advocated by the Obama administration. It holds that even if you have no intent to discriminate against a “protected class” of persons under the U.S. Civil Rights Act — whether racial or ethnic minorities, senior citizens, handicapped individuals or others — you may be in violation of the law if your policy or action disproportionately harms that class. http://www.inman.com/2013/06/18/disparate-impact-doctrine-troubling-property-owners-mortgage-lenders-and-employers/

 

Recently the Equal Employment Opportunity Commission and the Federal Trade Commission jointly released new guidance in the use of public records in pre-employment background checks. This action points to a greater scrutiny by the Federal government over the use of public records, especially with criminal histories.

Subsequently, heightened scrutiny can lead to more confusion amongst landlords and/or property managers in regards to the proper rental practices as well as the legal and lawful use of public records in tenant screening.

The Landlord Times gives a great example: “…a property management company has a policy of charging a set rental amount for the first three residents in a household, plus $100 per month for each additional resident. This policy, although applied equally to all applicants and residents, will have a disproportionately negative effect on families with children, and thus likely violates fair housing laws. Similarly, a policy of denying rental to everyone who has any criminal record may have a disparate impact on certain protected class groups (such as race, national origin, and disability).” http://blog.gosection8.com/could-you-be-in-violation-of-fair-housing-laws-without-even-realizing-it/

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Times are changing in regards to the legal and lawful use of public records, such as Criminal Histories, in tenant screening. It is critical landlords and property managers understand disparate impact, the effect it can have on their renting practices and tenant screening policies.”

Without a clear and current tenant screening policy landlords and property managers may leave themselves open to potential litigation. Almeida states: “Working with a third-party tenant screening company is the best step a landlord can make. A third-party tenant screening company will stay current with the law and help the landlord stay compliant with the law.”

TenantScreeningUSA.com is a third-party tenant screening company with experienced employees committed to keeping their clients compliant within the laws governing tenant screening. Working with properties large and small, TenantScreeningUSA.com offers the tenant checks necessary to help landlords make wise leasing decisions.

 

Third Party Tenant Background Screening Companies Help Make a Complex Task Easy

Tenant background checks can be an enormous task and is not always the easiest task to complete. First and foremost, a tenant check takes time. Diligent landlords need to check all facts and verify all data. This includes running the appropriate tenant screening reports drawn from public databases or county courthouses. And then the landlord must complete verification of references.

Time, time, and more time.

It is critical to pick a good tenant and for good reason.

A tenant must have the capacity to fulfill the financial agreement entered upon. Further, a tenant must also have the ability to maintain a property and not cause grievous damage to property as well as to other tenants. One bad tenant can ruin pre-existing long-term financially successful relationships of other tenants.

Certainly a significant portion of landlords and property managers conduct tenant checks. These reports are used as tools to confirm income, criminal history, and related. However, the thoroughness and completeness of these vetting tools is open to debate.

Consider the following:

If a tenant is particularly bad, or a landlord is in a hurry, it’s likely they might not tell you the complete truth on the phone. This is particularly true for if the tenant is currently in situ and hasn’t been fantastic – they might want to move them on as quickly as possible. http://www.propertyobserver.com.au/news/five-things-you-need-to-know-about-tenant-background-checks/2014022568035

 

Yikes! What is a landlord or property manager vetting new tenants to do?

Compounding the situation is the desire to keep a property occupied. An unoccupied property makes no income and making an income on a rental property is the eventual point.

The urge to rent to the first warm body that comes along can be overwhelming, especially if a property lay empty for an extended period of time, but that snap decision may cause more harm, and more cost, than one might expect.

In this economy, the draw to rent an unoccupied residence can be especially alluring. The added rental income, alone, is nothing to sneeze at nor is the peace of mind provided by having an empty home inhabited. Taking both benefits into account, it is easy to understand why overlooking the downside of renting a single family dwelling happens on more than one occasion. Unfortunately, it also explains why so many novice landlords become ensnared in rental nightmares that end up costing them — in blood, time and money — much more than these unfortunate folks could have ever anticipated in the onset. http://www.huffingtonpost.com/laura-wellington-/the-wolf-at-your-door-wha_b_4849425.html

Adam Almeida, President and CEO of TenantScreeningUSA.com, suggests a potential solution for new landlords or property managers for properties of any size.

“Working with a third-party tenant background screening company is the answer for new managers, new landlords, and property managers overwhelmed with the complexities of tenant screening.”

Almeida continues: “A third-party screener stays current with laws governing tenant screening and can provide all the reports a landlord might require to make an informed decision. But the most important reason might be a third-party understands the nuance of personal information, specifically the ability to understand a reliable reference versus something less reliable.”

Make a hard task easier and contact a third-party tenant screening company today to resolve specific needs in vetting potential rental candidates.

TenantScreeningUSA.com is a third-party tenant screening company well versed in the nuance of tenant screening. Not only can they make a hard task simple TenantScreeningUSA.com can provide fast, reliable, and thorough results in a timely manner and at a cost-point any new or existing landlord or property manager can afford.

 

Protections for Tenant Screening and Applicants

Tenant screening is an important tool in vetting potential tenants. From large scale properties to single-unit rentals, tenant screening provides the information landlords and property managers need to make informed decisions about potential renters.

There are protections for renters in regards to information provided. The Federal Trade Commission is one of several agencies that govern renting and rental properties.

In 2013 the FTC released information about action taken to protect potential tenants.

From an FTC press release dated April 3, 2013:

The Federal Trade Commission has warned the operators of six websites that share information about consumers’ rental histories with landlords that they may be subject to the requirements of the Fair Credit Reporting Act (FCRA).

The letters inform the recipients that if they meet certain criteria, namely collecting information on tenants and their rental history and providing that information to landlords so they can make judgments about renting to those tenants, they are considered credit reporting agencies and are subject to certain legal requirements. http://www.ftc.gov/news-events/press-releases/2013/04/ftc-warns-data-brokers-provide-tenant-rental-histories-they-may

It is incumbent on the third-party tenant screening companies to use information in a clear and lawful manner, and that the information gathered is based on accurate data points. These data points may include full name, social security number, and date of birth.

From the FTC Press Release:

Among the requirements cited in the letter are the companies’ obligation to protect the privacy of tenants whose information they collect, including ensuring that those requesting information about tenants have a legitimate reason to acquire it. The letter reminds the companies of their obligation to ensure that the information they provide is accurate, to give consumers a copy of the information about them on request, and to allow consumers to dispute information they believe is inaccurate. The letters also note that the companies must notify landlords of their requirements if they use the data to deny housing to a tenant, and to notify the sources of their information of the requirement that they provide accurate information. http://www.ftc.gov/news-events/press-releases/2013/04/ftc-warns-data-brokers-provide-tenant-rental-histories-they-may

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “The FCRA provides numerous protections for tenants within the screening process. Just as with pre-employment screening, tenants are afforded protection as to how their information is gathered and used.”

Another way an applicant can protect themselves is to review ones credit information on an annual basis.

From PrivacyRights.org: (https://www.privacyrights.org/top-5-tips-renter-privacy-alert-2013)

Order your credit report before you apply for a rental. A prospective landlord will almost certainly order your credit report when considering your rental application. Before you apply, order your own report to confirm that the information is accurate and up-to-date.

It may be beneficial to run a complete background report prior to having a landlord or property manager run one.

Almeida states: “It would be beneficial to understand what information might be pulled off of a private or public record. Having a third-party background screening company run a typical tenant check would allow an applicant to make corrections if needed.”

In the end there are steps an individual can take to ensure the information used on a rental application is accurate by pre-verifying their own information. Also, it is important that applicants know that the Federal government provides protection in regards to information privacy.

TenantScreeningUSA.com is a third-party tenant screening company that can assist both the applicant and the landlord/property manager with all background screening requirements.

 

Tenant Screening: Preventative Maintenance, Proactive Policy

 

Being a landlord or property manager is not as simple as one might think. Sure, the idea starts out fairly simple, but can become a monster before one knows it, especially for small unit or single property landlords.

Ask the question: Is it worth it?

Being a small unit or single property landlord can be an enormous challenge. All the tasks required to be a manager fall into the lap of the owner. Property maintenance, both inside and outside; finding and keeping a tenant; preserving existing tenants in multi-unit properties, and so on. The list could be endless.

Ultimately, all it might take to ruin the entire proposition is one bad tenant. A bad tenant can easily destroy everything a property owner/landlord has built.

Recently, an article posted to the AOL Real Estate blog site highlighted some of the horrors provided by a bad tenant: (realestate.aol.com/blog; Dec. 18, 13)

A tenant in a basement room of Terry and Kathy MacDonald’s house in Golden Valley, Minn., allegedly ignored their bans on smoking and drinking, then became such a nuisance when drunk that neighbors called police. When the McDonalds asked him to leave…their tenant verbally threatened them and began punching holes in walls, urinating on carpet, breaking fixtures and otherwise doing harm to the home and the McDonalds’ peace of mind. He purportedly became so threatening that, on the advice of police, the McDonalds finally fled their own home to stay in a hotel, rather than risk further confrontation — then offered to pay him to leave rather than take the time and expense of legally evicting him. http://realestate.aol.com/blog/2013/12/18/2013-most-outrageous-real-estate-stories/

And, as noted in the selection above, legal eviction takes time and costs money.

From WKTV-Utica, (Dec. 27, 13): A response to a question about eviction is stated below.

If you think you’re going to have to evict, and you believe they’ll fight it, it’s going to take 3-4 months and undoubtedly cost you $1,000-$2,000 in legal fees, plus lost rent which you’ll never get back from them, plus any property damage they could do. http://www.wktv.com/marketplace/real-estate/news/237503821.html

A thorough tenant screening process can be the single most important tool a landlord or property manager of single properties or small-unit complexes can utilize as a preventative measure. There are several different steps one can take but there are a few key components every tenant screening protocol should include:

  • A complete and legally compliant application, one that includes full disclosure over the use of public records and includes a perspective tenants’ consent.
  • A face-to-face interview with all perspective tenants’.
  • A review of all references, specifically those of previous landlords.
  • A thorough and comprehensive tenant check.

A tenant check is a process of review of public records and non-public records. While there are a wide variety of documents that can be used, several are key:

  • Consumer credit report (non-public record)
  • Evictions (public record)
  • Criminal history (public record)
  • Sex offender registry (public record)

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “A tenant check is a critical part of the vetting process for perspective tenants. It is a preventative action that may greatly reduce the risk of a bad tenant. By being proactive in vetting a perspective tenant, a landlord or property manager can greatly mitigate the risk in renting.”

Being a landlord can be “worth it” as long as care is taken finding the right tenant.

TenantScreeningUSA.com is a third-party background screening company that offers thorough, affordable, and secure tenant checks for property managers large and small. TenantScreeningUSA.com is fully compliant with all local, state, and federal regulations that enforce the tenant screening industry.

 

 

 

An Accidental Landlord: Tenant Screening is Key to Success

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “With the housing resale market still struggling to recover and interest rates remaining low, new home buyers are opting to become landlords.” Tenant background screening is a key tool in creating a win-win situation for the accidental landlord.

Becoming a landlord is a challenge. Becoming an accidental landlord redoubles that challenge.

Currently interest rates remain low, allowing individuals to purchase new homes. Unfortunately the resale market values are struggling to keep up. A homeowner’s ability to sell an existing home prior to moving to a new home can be limited. Subsequently, the homeowner may decide to keep both homes: One to move into and one to rent out.

In a recent article posted to money.usnews.com (Nov. 11, 13) the aforementioned scenario is personalized.

“We quickly realized that in the market today, with what we still owed, if we were lucky, we’d end up walking away from the table with a couple grand in our pockets,” Carmen says, adding that the profit wouldn’t even cover the down payment on the new house. So Carmen and his wife, Missi, decided to rent out their first house. http://money.usnews.com/money/personal-finance/articles/2013/11/04/what-you-should-know-before-becoming-a-landlord

Becoming a landlord is no simple task as there are a number of aspects to consider.

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Key to being a landlord is maintaining long-term fiscally secure tenants. Obviously you don’t want a new house payment and an old house payment.”

First step and, potentially, the most important step: A thorough tenant screening.

Key components of a background check are:

1. Credit History

2. Criminal History

3. Eviction History

Each report serves a unique purpose and ultimately, each will contribute to the success of the rental situation.

Credit history will provide information on a tenant’s ability to fulfill a financial leasing arrangement. Criminal history can show convictions at the county level and may assist in creating a safe and secure situation for neighbors as well as property.

Eviction history is significant as well. Not understanding a tenant’s past in regards to evictions could, potentially, be an expensive oversight.

“In most areas, it takes a couple of months to evict a tenant through the local court process. Bad tenants know this,” … The tenant gives a sob story about why the rent is late, and “after a few months, the landlord realizes that he is being played, so he files for eviction.”

It may take a couple more months before the court date is set. Once the court orders eviction, the tenant finally leaves – many months of having lived rent-free. http://money.usnews.com/money/personal-finance/articles/2013/11/04/what-you-should-know-before-becoming-a-landlord

Accidental landlords should also understand the laws and regulations that govern rental properties. They vary from state to state and town to town. If a landlord does remain up to date on local ordinance the cost could be considerable.

As reported at www.StevensPointJournal.com the city is considering a new nuisance ordinance as it pertains to tenants.

The City Council will vote Monday on a nuisance ordinance that would allow police to issue directives, charge costs of police response, and ultimately fine owners who have properties with too many complaints and aren’t doing anything about it. https://www.stevenspointjournal.com/article/20131114/SPJ0101/311140287/

Almeida concludes: “There is a great deal to consider when it comes to being a landlord, accidental or otherwise. It is a best practice to work with a third-party tenant screening company. Tenant screening can provide landlords information required to make a solid financial decision, as well as keep the landlord current with legislation.”

TenantScreeningUSA.com is a third-party tenant screening company that provides data to landlords and property managers of all sizes, and helps provide current information regarding tenant screening legislation.

 

Recent Changes in Wisconsin Highlight a Need to Work with a Third-Party Tenant Screening Company

Recently, the Wisconsin legislature passed a bill altering the powers of landlords and rights of tenants. http://badgerherald.com/news/2013/10/24/landlord-tenant-bill-deconstructed/ Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Legislators in Wisconsin have simplified the process of eviction and legally changed the dynamic of the renter/landlord relationship. It is a critical turning point that highlights the absolute need to work with a third-party tenant screening company in order to stay compliant with current legislation”

Recent changes in the Wisconsin legislature have altered the power of landlords as well as the rights of tenants. http://badgerherald.com/news/2013/10/24/landlord-tenant-bill-deconstructed/

The bill, which would remove more than 20 city ordinances, would impact areas such as dealing with parking, the eviction process and the removal of tenant property.

A primary change is with the manner in which tenants are contacted about potential eviction.

“Right now, it is state law that the landlord has to hire somebody to try three times to try and personally serve the tenant,” Zanichkowsky said. “If people miss an eviction hearing, they could be homeless. Now, county by county, they can say that mailing a notice is good enough.” http://badgerherald.com/news/2013/10/24/landlord-tenant-bill-deconstructed/

Another portion of the bill handles parking and removal of illegally parked vehicles as well as the handling of possessions after eviction.

Wisconsin has previously enacted two laws that provide greater power to landlords.

ACT 108 allows:

landlords to discriminate against prospective renters based on information like credit or criminal history, and to require security deposits greater than one month’s rent. http://www.thedailypage.com/daily/article.php?article=41322 see also http://docs.legis.wisconsin.gov/2011/related/acts/108

Act 143 prevents:

cities, counties, towns and villages from blocking evictions, and says that landlords are not required to disclose building or housing code violations unless they have “actual knowledge” of them. http://www.thedailypage.com/daily/article.php?article=41322 see also http://docs.legis.wisconsin.gov/2011/related/acts/143

Landlords and property managers need to stay informed with changing law and remain or become compliant with all local, State, and Federal law that mandate tenant screening.

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “While the larger corporate rental communities may have the wherewithal to stay current with legislation, mid-size to smaller rental communities may not be able to afford such a luxury.”

Tenant screening is a critical component in vetting potential renters. Understanding their ability to fulfill their fiscal responsibilities as well as responsibilities to neighbors and property is important. But conducting tenant screening in a fully legal manner is equally important.

“Changes in the laws governing tenant screening in Wisconsin highlight the importance of landlords and property managers staying compliant within those laws. Working with third-party tenant screening companies is the simplest and most affordable manner to do so.” Almeida states.

TenantScreeningUSA.com is a third-party tenant screening company that provides tenant checks to landlords and property managers for all sizes and types of rental complexes. From the single-unit to the large community, TenantScreeningUSA.com has the ability to provide thorough background and credit checks along with leasing recommendations to landlords and property managers anywhere in the USA.

 

Off-Season Rental Properties: Don’t Sacrifice Tenant Checks to Ensure Continued Income

A recent article posted to Martha’s Vineyard Times (MVTimes.com) illuminates an interesting issue regarding renting properties in the off-season and some of the challenges property owners face.

“I’ll never do it again,” said Ellen Duncan, of Edgartown, referring to renting her house for the winter. “They cost me much more than I made in rent. I had to replace my whole living room set, all my dishes. I had to buy a new refrigerator. I spent thousands of dollars to get back the house that I had. It scared me. They were destructive and they stole my bike and other things. The house was such a pig sty. There was so much damage”. She said the security deposit didn’t come close to covering her expenses. http://www.mvtimes.com/2013/10/02/winter-rentals-are-not-everyone-17524/

Issues with tenants are commonplace with standard rental situations, such as apartment complexes, and expected by landlords and property managers. Policies are in place to assist in the eviction of bad tenants and while it can be a costly effort it is a cost built into renting an apartment. However property managers that rent out single or small unit seasonal properties may not have the financial wherewithal or expectation of dealing with a tenant that destroys property.

Winter renters are often transients… “Sometimes they have animals and other guests staying with them, so the house may suffer from more wear and tear than a summer rental,” … “I have seen situations where the winter tenants don’t move out in time for the summer rentals, and of course, this becomes a huge problem and a big legal hassle. If you like your property, don’t do a winter rental.” http://www.mvtimes.com/2013/10/02/winter-rentals-are-not-everyone-17524/

The same conversation could be had if off-season occurs in the winter as opposed to winter being the off-season at Martha’s Vineyard.

Ultimately, one must protect the investment of a vacation rental property.

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “A thorough tenant check should be conducted on any potential tenant and lease signer. Evictions, criminal history, and personal or previous landlord references are, at a minimum, critical. Bad tenants often focus on the single unit renter, especially off-season rentals.”

There is a definite temptation to rent a property during the off-season. Continuing a source of income is a great temptation but at what risk? The cost of repairing a property can quickly become prohibitive and those repairs may take place after the cost of eviction. In the end the best practice may be to resist temptation and not rent, but if one must rent in the off-season it is critical to conduct the most extensive tenant check possible.

Almeida states: “The cost of a tenant check is so small when compared to the cost of repairs and legal fees incurred due to eviction. A little due diligence goes a long way.”

TenantScreeningUSA.com provides tenant screening for rentals of every type, large and small. With a highly trained staff and extensive experience in tenant screening, TenantScreeningUSA.com can provide solutions to all background screening requirements a landlord or property manager may have.

 

Evictions Are Not Fun: TenantScreeningUSA.com Highly Recommends Landlords and Tenants Understand the Potential for Eviction from a Variety of Reasons

Eviction is a process of removing an individual, group, or family from a rental premises for violating a number of circumstances, most commonly over repeated failure to pay an agreed upon rental or lease payment. Laws regulating rental properties and the process of eviction can vary on a county level. TenantScreeningUSA.com highly recommends that landlords AND tenants understand local eviction laws.

Property managers and landlords face many challenges renting properties. A key challenge is maintaining 100% occupancy of a property. Finding viable tenants that can fulfill the long-term financial obligation of renting a single-family dwelling or apartment can be complex, but once in place viable tenants can provide a degree of financial surety for a property owner. However, there are tenants that may have initially shown the capability to fulfill an obligation but, due to a variety of circumstances, ultimately fail and force a landlord into the eviction process.

Eviction is never easy, either for the landlord or the renter. It is a long, expensive process that puts a significant drain on a property in terms of financial loss due to potential property damage, damage to property reputation and loss of potential income.

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Eviction is a challenging process, both in terms of time and monetary loss.”

One mistake owners of single- or small-unit property make is renting to their own family.

An article posted to the Independent Record (Sep. 01, 2013), outlines the travails of an elderly couple that rented to a family member and were subsequently forced to evict.

“They were served with an eviction notice and had one week to remove their personal possessions, but left a ton of stuff and vehicles on the property. This cute little house looks worse than the city dump. There are holes in the walls, and filth everywhere, it is just trashed!” http://helenair.com/business/local/renting-to-daughter-huge-mistake-for-retired-couple/article_4e2a18b0-12d1-11e3-905e-001a4bcf887a.html

Almeida continues: “Landlords need to provide clear guidelines covering a tenant’s residency, specific to the possibility of eviction. There are reasons other than failure to pay rent, such as code violation, that could cause eviction. It must be very clear to a tenant.”

The online Vallejo Times-Herald (Sep 01, 2013) reports a woman evicted for bringing in homeless individuals to her home and sheltering them, subsequently breaking code enforcement regulations.

Cathy Erler took in strangers into her home when they needed a place to sleep. Now she finds herself living in her car with two friends and a dog after she was evicted due to pressure from neighbors and the city. http://www.timesheraldonline.com/news/ci_23993782/vallejos-cathy-erler-helped-homeless-now-shes-one

In Norristown, PA a renter has been warned by the local police department that: “one more altercation at her rented row house here, one more call to 911, and they would force her landlord to evict her.” http://www.nytimes.com/2013/08/17/us/victims-dilemma-911-calls-can-bring-eviction.html?pagewanted=all&_r=0

The New York Times reports (Aug 17, 2013) rapid expansion of neighborhood nuisance laws that could lead to eviction.

Over the last 25 years, in a trend still growing, hundreds of cities and towns across the country have adopted nuisance property or “crime-free housing” ordinances. Putting responsibility on landlords to weed out drug dealers and disruptive tenants, the laws aim to save neighborhoods from blight as well as ease burdens on the police. http://www.nytimes.com/2013/08/17/us/victims-dilemma-911-calls-can-bring-eviction.html?pagewanted=all&_r=0

Eviction can come from the landlord or be forced upon a landlord by local agencies or cities, but can also come from Home Owner Associations (HOA).

A Dunwoody apartment complex is evicting a man, claiming he made other tenants uncomfortable by staring at them at the pool. http://www.wsbtv.com/news/news/local/apartment-complex-evicts-man-making-tenants-uncomf/nZZRy/

In the end it is incumbent on both landlord and renter to understand the eviction laws within their community. It is a tool of last resort that can be very expensive to a landlord’s property, a property’s reputation, and ability to maintain a long-term financially secure rental community.

TenantScreeningUSA.com is a third-party tenant screening company that provides tenant checks to landlords and property managers for rental communities ranging from single units to large complexes.

 


Sex Offender Registry Checks: Key Component of Tenant Screening in a Changing Suburban Landscape

The changing landscape of suburban living suggests that many individuals and families are returning to urbanized areas such as cities and towns. Subsequently, suburbs are losing businesses, jobs, and residents. http://www.salon.com/2013/08/03/the_suburbs_are_dead_and_thats_not_a_good_thing/ In order to stem the tide of suburban flight landlords and property managers may reduce the cost of renting a house or an apartment.

It stands to reason that in order to maintain a high level of occupancy in a declining area that rental rates would drop. Affordable living is attractive to a variety of individuals and for a variety of reasons.

In many states registered sex offenders are controlled in their living arrangements by affordability and by state law.

A recent article on www.WorchesterMag.com (Aug. 1, 2013) states:

Sex offenders need a place to live, too, and while many end up in triple-deckers, treatment centers and other residences throughout the city, Worcester Mag found cases where some of the highest-risk offenders are either living in large, family-friendly apartment buildings or using the address of a relative that lives there. http://www.worcestermag.com/city-desk/top-news/A-building-concern-217900591.html

In many instances the aforementioned apartment buildings are affordable and apartment buildings continue to draw registered sex offenders:

Ultimately, therein lies the rub for owners of rental housing, which attracts a larger number of sex offenders than any other type of housing. “[They] migrate towards rental housing purely because of the economics of it,” … http://www.multifamilyexecutive.com/apartment-trends/sympathy-for-the-devil.aspx

The advent of Megan’s Law in 1994 led to changes in rental policies across the country directly related to dealing with registered sex offenders:

Following the disclosures of registries mandated by Megan’s Law in 1994, apartments across the country began incorporating sex offender registry searches into standard lease applicant screening practices. The industry has largely—though not entirely—embraced the notion that being a registered sex offender is a de facto condition for denying lease applicants. http://www.multifamilyexecutive.com/apartment-trends/sympathy-for-the-devil.aspx

Today, across the United States many states control the living arrangements of registered sex offenders by law:

Twenty-two states in the United States currently have some form of residency law that restricts where sex offenders can live. For example, many states prohibit sex offenders from living within 1000–2500 feet of schools, bus stops, or daycare centers. http://www.law.northwestern.edu/lawreview/v102/n1/307/lr102n1agudo.pdf

Ultimately, a critical component of the tenant screening process may be with a review of registered sex offenders. This step may be included in a typical tenant check or as a separate process.

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “As with any part of the tenant screening process, landlords and property managers really should utilize a third-party tenant screening company to ensure they are compliant with all local, state, and federal practices.” TenantScreeningUSA.com includes a national sex offender registry search with every tenant check performed.

As the suburbs struggle to maintain their prosperity and population the cost of living, specifically with rental properties, may drop significantly and, subsequently, sexual predators and registered offenders may be drawn to these properties.

Almeida states: “One of the primary concerns of a property manager is to protect the property and protect existing tenants. Conducting a sex offender registry search may greatly assist that process.”

TenantScreeningUSA.com is a third-party background screening company that provides tenant checks for landlords and property managers responsible for properties large and small. Specializing in small to mid-sized rental communities, TenantScreeningUSA.com can create customized tenant packages to fulfill all needs.

 

 

With Summer Here Back to School Is Near: Tenant Screening College Kids

With graduation a distant memory and summer in full effect, many college aged kids are not thinking about going back to school. Not yet. However, as summer begins to draw to a close the focus will change and the idea of where to live will become a fixation.

In college towns with large out-of-state student populations, housing can be relatively easy to find. A multitude of choices exist. Many schools have on-campus housing. Most colleges are surrounded by large apartment complexes designed for temporary student based living. Another choice may be with private residences or small unit apartment complexes.

Generally, large apartment complexes cover their bases by conducting tenant screening and each tenant listed on the lease is usually screened. In college environments it is not unusual for a single bedroom unit to have multiple tenants. Property managers for large complexes understand the nature and transiency of college students. But this may not hold true with single family dwelling or small unit rental property landlords.

Tenant screening of college students should be as robust as screening conducted on other, long-term, or non-student tenant. Despite their living arrangement, typically less than a year, it is as important to protect ones investment, regardless of renter’s occupation.

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Owners of single family dwellings or small unit apartments that rent to college students should conduct a thorough tenant screening just as they would with anyone else. Ultimately the goal of tenant screening is to protect people, property, and perception.”

A tenant check for a college renter must include all individuals on the lease as well as any co-signer, such as a parent. The opportunity to check evictions records might not produce viable records as a college student may not have lived in a rental situation prior to shipping off to school. However, a complete reference check may prove beneficial in understanding a tenant.

Almeida states: “One of the keys to a successful renter-landlord relationship is actually having a relationship. Knowing tenants, understanding tenants, and having an open communication are key to success.”

As with standard rental relationships, the importance of tenant screening is multifold. First, and foremost, tenant screening provides information that allows a landlord/property manager to make a solid decision on a potential tenant. Tenant screening greatly assists in creating a safe living environment for both new tenants and pre-existing. While a college student may not have the long-term relationship with a property, there could be others in a complex that do. This may be especially true in smaller unit properties. Another important result of tenant screening is the protection of property. Again, if one considers a solid and complete reference check, as well as other available tenant screening reports, a landlord/property manager will have the information required to make a decision to protect property. Single family dwelling landlords must be extremely careful in their tenant screening as the risk to potential property damage could be significant. Lastly, tenant screening can allow a property to make a decision to protect a properties reputation. If a complex gets the reputation of a “party” location or a “dangerous” location, the value of per unit rental income will decrease.

In the end it is important for single family dwelling and small unit apartment landlords/property managers to be especially vigilant in renting to college students. They should take the same precautions as they might with any other renter: Complete interview process, tenant screening all tenants, communicate with tenants, and make decisions based on factual information.

TenantScreeningUSA.com is a third-party tenant screening company that can provide low-cost, compliant, and thorough tenant screening packages for large unit complexes to single family dwellings. Contact them today to get more information…