Tenant screening is an incredibly important tool, one that should be utilized by property managers and landlords managing properties of every size.  Adam Almeida, President and CEO of TenantScreeningUSA.com opines:  “The primary responsibility of a landlord is protection:  Protection of property, existing residents, and the perception of the property within the larger community.  Subsequently, working with a well-qualified tenant screening agency, such as TenantScreeningUSA.com, remains a best practice for risk mitigation.”

Tenant screening is an important tool for landlords and property managers, and should be used to vet potential new residents of a rental property.

Almeida states: “Tenant screening is a primary tool landlords can utilize in vetting residents as a tenant check will verify information provided by a candidate on an application and during an interview.”

From Forbes.com (Jan. 31, 18):

…No. 1 priority for a profitable rental investment is finding good tenants. Make sure you or your property manager properly screen future renters by accessing quality tenant screening reports. Do not rely on your gut or a story from a “nice-looking” renter. Check verifiable reports to get an honest picture of your future tenant… ⁽¹⁾

Among the reasons to conduct a tenant check are:

1. Financial – Loss of income is the bane of any investor of rental properties.  It does not matter if the property is single unit or multiple units; empty properties are an obvious problem. And it only takes one bad tenant to allow a property to lose money. Protecting the actual property from damage is a challenge and may not always be vetted out via a tenant check; however a tenant check does have the power to mitigate potential risk to property.
2. People – In order to have the financial goals successful a landlord needs to make sure long-term renters are protected.  The loss of stable income should a “bad tenant” take up residency could be significantly damaging. Long-term renters can also provide reference to other potential long-term renters.
3. Perception – Landlords and property managers may not always consider the perception or reputation of a rental community but renters do.  If a property has the perception of being inadequate, unsafe, and unkempt those high value long-term renters may not consider such a property.

Almeida adds: “Landlords know their responsibility, one that includes property, people and perception, and they should be using a well-qualified third-party tenant screening agency, such as TenantScreeningUSA.com.”

Typical tenant screening reports may include:

1. Consumer Credit reports – This report will assist a landlord in understanding a potential tenant’s ability to fulfill the fiscal requirements of any rental arrangement.
2. Criminal History Reports – Criminal History assist a landlord in determining the potential risk that may occur with a potential applicant.  But it should be noted that criminal history reports remain controversial in tenant screening and landlords should work closely with a tenant screening agency to understand laws governing such use.
3. Eviction Records – This report highlights the history of a renter and may assist in avoiding additional eviction actions.
4. References – Perhaps the most important and yet underutilized verification.

Almeida states: “Reference verification may be one of the most helpful activities a landlord can utilize.  Confirming references from previous landlords could greatly assist.”

In the end a best practice for landlords and/or property managers should be working with a third party tenant screening agency, such as TenantScreeninUSA.com, in order to stay compliant with law, as well as providing the most current and applicable data available.

In the end Tenant Checks do not have to “break the bank.”  TenantScreeningUSA.com is a third-party tenant screening company that offers affordable, thorough, and secure background screening for landlords and property managers.  TenantScreeningUSA.com can create a tenant screening package unique to the requirements of rental properties large and small.

Notes:

(1) forbes.com/sites/forbesrealestatecouncil/2018/01/31/cash-flow-killers-to-your-real-estate-investment/#312eac3f5b5c

A recent ruling by the United States Court of Appeals for the Second Circuit rules that FHA landlords may be held liable for Tenant-on-Tenant Harassment. (Case Donahue Francis v. Kings Park Manor Inc., Corrine Downing et. al.; (2:14-cv-03555))  Adam Almeida, President and CEO of TenantScreeningUSA.com, states: “Significant rulings, such as the recent decision by the 2nd Circuit Court, should immediately alert landlords and property managers to review screening policies and insure the most vigorous tenant checks are conducted to keep existing and new tenants safe.”

The Second Circuit court recently ruled on a Tenant-on-Tenant case (2:14-CV-03555) and noted that FHA landlords may be liable for such harassment.  Adam Almeida, President and CEO of TenantScreeningUSA.com, notes:  “One of the most critical responsibilities of a landlord is in protecting existing and new tenants, and this process can be best served by a thorough tenant check; one conducted by a well-qualified third-party tenant screening agency.”

Recently the Second Circuit court ruled on a Tenant-on-Tenant harassment case, a ruling that could have significant repercussions for landlords and, potentially, tenant screening.

From BusinessInsurance.com (Mar. 05, 19):

The federal Fair House Act is analogous to Title VII of the Civil Rights Act of 1964 in holding a landlord can be held liable for failing to promptly respond to a racially hostile housing environment, says a federal appeals court in a divided opinion that overturns a lower court ruling.

In 2010, Donahue Francis, a black man, signed a rental lease agreement with Kings Park, New York-based Kings Park Manor Inc. and moved into an apartment unit of a KPM-owned complex managed by Corrinne Downing, according to Monday’s ruling by the 2nd U.S. Circuit Court of Appeals in New York in Donahue Francis v. Kings Park Manor Inc., Corrine Downing et. al.

After several uneventful months, Mr. Francis’ next-door neighbor began to subject Mr. Francis “to what only can be described as a brazen and relentless campaign of racial harassment, abuse, and threats,” said the ruling. ⁽¹⁾

“In finding that landlords may be held liable for tenant-on-tenant harassment,” Almeida states, “a thorough tenant check becomes all-the-more critical.”

A primary responsibility of a landlord is the protection of property, person, and perception or reputation.  A tenant check can greatly assist in vetting an applicant and assist landlords in making a well informed decision.

The complicated finding reveals that FHA landlords have a specific responsibility in protecting their tenants.

From theLaw.com (Mar 05, 19):

The federal housing authority itself had found, and promulgated rules that found, a hostile harassment environment between tenants to be a violation under federal housing rules—and that a housing provider can be held liable, as the authority said in its amicus brief filed in the case, “in certain circumstances for failing to address tenant‐on‐tenant harassment.” ⁽²⁾

“In the end,” Almeida states, “rulings such as the recent 2nd Court finding should alert landlords and/or property managers to work closely with a tenant screening agency to insure their screening policies are as thorough and as complaint as possible and to avoid the potential for discrimination.

TenantScreeningUSA.com is a third-party tenant 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.  They are also a proud member of NAPBS.

Notes:

1.     businessinsurance.com/article/20190305/NEWS06/912327079/Landlord-can-be-responsible-for-tenant%E2%80%99s-racist-actions-court-rules
2.     law.com/newyorklawjournal/2019/03/05/second-circuit-rules-fha-landlord-can-be-liable-for-tenant-on-tenant-harassment/?slreturn=20190209122539

All landlords and property managers know the importance of tenant screening a prospective tenant.  Or, at least they should.

Tenant screening is one of the critical components of a thorough background check on all prospective tenants.  On a whole the vetting process entails several components, starting with the application process.  Every application must be treated equally and in accordance with the law.  Now, more than ever, cities and counties are controlling how tenant applications are managed, especially in tenant friendly cities such as Seattle and San Francisco.

Another important piece of the vetting process is a tenant interview.  Questions should be short and direct, but also open ended.  An interview should be more of a conversation, one that probes deep enough to get a sense about the applicant, essentially working on risk mitigation and developing an understanding of what affect, if any, a new tenant will have on the property and community.

Finally, the tenant background check.

Being central to tenant screening overall, a tenant check is concerned primarily with quantitative data that will allow a landlord and/or property make a well informed decision about a perspective tenant.

From ForeignPolicy.org (Feb 02, 19)

The right tenant can be a joy. They pay on time, have a good relationship with neighbors, and keep your property in good shape. The wrong tenant, however, can be a nightmare. They may trash your place, put you behind with bills, or cause trouble for other tenants or neighbors. ⁽¹⁾

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “There are several public records and numerous verifications that would –prove highly beneficial to the tenant check.  Key are Criminal History Reports, Consumer Credit Reports, and Eviction Records, to name a few.  References could include personal and professional references, as well as previous landlord references.”

Combined with an interview the tenant check allows a landlord to get a better understanding of the candidate.  One of the most important aspects of this process is, as mentioned, risk mitigation.  A landlord and/or property manager has a responsibility to the existing tenants, ownership of the property, and the community at large.

Almeida states: “A tenant check is an inexpensive tool a landlord can use to get this important information.  And utilizing a third-party tenant screening agency can provide great value insomuch with keeping landlords up-to-date with current and potential laws governing tenant screening, and helping these landlords stay fully compliant with law.”

More and more landlords are coming under fire by new laws governing how key reports within a tenant check are utilized.

In Seattle, attempts are being made to quell homelessness via legislation.   Changes to eviction laws could create challenges for landlords in the vetting process.⁽²⁾

Almeida adds: “Is tenant screening important?  Absolutely.  It is a critical tool in evaluating and confirming information provided by applicants.  It provides the information that landlords need in order to maintain a safe environment for existing tenants, protecting property, and the community at large.”

TenantScreeningUSA.com is a third-party tenant screening agency 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.  They are also a proud member of NAPBS.

Notes:

(1)   foreignpolicyi.org/why-checking-the-background-of-prospective-tenants-is-essential/

(2)   seattletimes.com/seattle-news/politics/state-legislature-trying-to-tackle-homelessness-through-eviction-reform/

Tenant screening is meant to mitigate risk within a rental community.  Through the tenant screening process a landlord and/or property manager can gain valuable information in order to make a thorough decision on potential candidates, and, subsequently, mitigate risk of property, person, and finance.

But a best practice in tenant screening is to work with a well-qualified third-party tenant-screening agency in order to stay compliant with laws governing tenant screening and rental property.

Oftentimes jurisdictions have different laws governing rental properties.

Adam Almeida, President and CEO of TenantScreeningUSA.com opines: “It is very important that landlords and/or Property Mangers work with a third-party tenant screening agency in order to stay compliant but also to avoid the potential of expensive legal action.  Working with a third-party is a smart choice to mitigate risk for the landlord/property manager during the vetting process of potential rental candidates.”

The State of New York has rules governing where a Registered Sex Offender may reside.  The law is designed to assist convicted sex offenders to reengage with society and acceptable housing is often considered a key in this reintegration.

From Law.com (Dec 13, 18):

In New York state, sex offenders are not obligated to inform anyone of their past. Rather, the onus is on local law enforcement to release information, where necessary, to the community and/or particularly vulnerable populations, including schools, nursing homes, day care centers, etc. Correction Law Article 6, §168-l. ⁽¹⁾

Almeida adds: “Laws can vary wildly from state to state, county to county, even city to city. Working with a third-party tenant screening agency can greatly assist property managers remain compliant with law.”

The sex offender registry is just one of the challenges faced by property managers and landlords. Another is with Criminal Record History.

Almeida adds: “Criminal history use as a part of tenant screening or any form of background screening process has become increasingly complicated in the last several years; another good reason to work with a tenant screening agency.  Laws change rapidly and are often complex.  Working with a professional third-party tenant screening agency can greatly reduce the challenge of understanding laws one is attempting to comply with.”

In Seattle, WA a new law regarding the use of criminal records history has caused a stir and will continue to compound the challenges of tenant screening.

From Marketplace.com (Dec 30, 18):

But an unprecedented new city law — forbidding landlords from checking into potential renters’ criminal past — is very much in dispute and setting up a closely-watched court battle.

Landlords argue their free speech, property rights and possibly their safety is being jeopardized by a law that forces them to close their eyes to relevant public information about possible tenants. They’re backed by landlord groups and background screeners who call the ordinance a perilous precedent.

The “Fair Chance Housing Act” was anything but that, according to landlords’ lawyers. Ethan Blevins, an attorney at the Pacific Legal Foundation, said the law’s premise “is this paternalistic idea that the city gets to decide what information is relevant or important to a landlord’s decision making process.” ⁽²⁾

Almeida adds: “Again, it’s about risk mitigation and the use of criminal records often treads a thin line.  It is an area of continued conversation and on-going change.”

Using a well-qualified third-party tenant-screening agency remains not only the best practice but also the safest approach for all landlords and propriety managers.

TenantScreeningUSA.com is a third-party tenant 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.  They are also a proud member of NAPBS.

NOTES:

1. law.com/newyorklawjournal/2018/12/13/when-a-sex-offender-moves-in/?slreturn=20190006170346
2. marketwatch.com/story/a-new-seattle-housing-law-forbids-landlords-from-checking-into-tenants-criminal-history-but-does-it-go-too-far-2018-12-26

Eviction has been a mounting challenge across the country for the last number of years and with the recent shortage of affordable rental living, and related rent increases, the challenge only grows larger.

Many cities and states across the country face the challenge of eviction and the potential sister challenge of homelessness.  Landlords and property managers have to deal with an emotionally charged issue, one assorted with numerous laws and regulations.

Adam Almeida, President and CEO of TenantScreeningUSA.com states:  “A best practice for landlords and property managers has always been to work with a well-qualified third-party tenant screening agency.  With a highly trained staff of investigators, a tenant screening agency is tasked in staying current with all laws governing tenant screening.

The city of Cleveland Ohio is making a concerted effort in reducing evictions through the use of mediation and state and federal assistance programs.

From WDET.org (Nov 12, 18):

… a pilot program which was started under the watch of Judge Ron O’Leary, who oversees Cleveland’s Housing Court. It brings in social workers to screen tenants who come to the court. O’Leary says the goal is to see if the tenants are eligible for assistance through a variety of programs.

“We may see tenants who are seniors. We may see tenants who are veterans or who have some mental or physical health issues or substance abuse issues,” says O’Leary. ”The goal in screening the tenants is to see if there are resources available.”

That program made more than 1,500 referrals in 2017, and has almost reached that number already this year. (1)

Another challenge tenants face with eviction is lack of legal representation.

From WDET.com (Nov 12, 18):

Unlike criminal defendants, tenants facing eviction have no right to legal representation. (2)

Cleveland works with a legal aid group to assist low-income tenants with legal representation.

Almeida states: “Preventative practices are, ultimately, the key to reducing evictions.”

There are several steps a landlord should go through during the vetting process of a potential tenant.

1.      Tenant Check

A tenant background check can offer several reports drawn from public databases, both computerized and via a county courthouse.

Almeida states: “A third-party tenant screening agency can help a landlord interpret data from a tenant check, especially criminal history and credit reports, the two key documents in a tenant check.”

A criminal history report is commonly drawn from last and current county of residence.  As an example, TenantScreeningUSA.com has access to courthouses across the country to pull the most immediate and current information on an applicant.

2.      Eviction Records

Eviction records are another critical component of the tenant check but one worthy of being highlighted.

Almeida says: “An eviction record provides insight to a renter’s behavior.  Certainly it would point to a conversation well worth having regarding a potential tenant’s candidacy.”

3.      References, personal and professional

References are an integral part of the vetting process.  It is key to have any reference confirmed and as many references as available should be vetted.  The most important reference is generally from the previous landlord.

In the end working with a third-party tenant screening agency remains a best practice.  With all the challenges that come with evictions staying ahead of the game is a best bet.

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 customize a tenant screening package specific to a managers unique requirements.

Notes:

(1)   wdet.org/posts/2018/11/12/87524-michigan-cities-face-eviction-crisis-here-are-some-solutions/

(2)   ibid

Recent survey data by Freddie Mac further suggests that in the minds of many Americans renting is cheaper than purchasing a home.  Adam Almeida, President and CEO of TenantScreeningUSA.com opines:  “As more people look to renting over ownership landlords and property managers will see increasing opportunity for improved rental income, but should note that tenant screening laws and policies must be complied with; and working with a well-qualified tenant screening agency remains a best practice.”
A recent report by Freddie Mac suggests that more Americans than ever see renting as a cheaper option than home ownership.

From a recent Wall Street Journal posted article, October 16, 2018.

More than three-quarters of Americans now view renting as more affordable than owning a home, the latest sign that rising mortgage rates and higher home prices will continue to pressure home sales.

Some 78% of people now say that renting is more affordable than owning, according to survey data to be released Tuesday by mortgage company Freddie Mac.  That is up 11 percentage points from only six months ago. ⁽¹⁾

There is evidence across the country of this trend.

In Springfield, Missouri renting had seemingly become the preference.

From OzarkFirst.com (Oct 17, 18):

According to a study by marketplace.org, renting and not owning is the preferred choice for people living in Springfield.

54.4% of people rent compared to 43.6% of people who are homeowners.

Of the nearly 140,000 households in Springfield, about 78,000 of them are renting compared to about 61,000 who own.

Over the past two years … has seen Springfield turn into a seller’s market for people looking to buy a home then rent it out or better known as investment properties. ⁽²⁾

However, there are alternate opinions regarding ownership versus renting.

David Bach, noted money expert, suggests three reasons to rent in a recent interview on CNBC.com (Oct. 25, 18):

1. You’re not staying put. “If you think you’re going to move in the next three years, you should not be buying a piece of real estate,” says Bach.
2. You’re not sure about your job. If your employment situation isn’t stable or you’re living paycheck-to-paycheck, don’t buy a home, says Bach.
3. You plan to have children and might need more space. “If you know you’re going to have kids and you think that will lead you to needing a bigger place, don’t rush and buy a small place. A growing family could require you to move in a few years,” says Bach. ⁽³⁾

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Regardless the reason to rent or not to rent, by all appearances rental demand continues to increase.  And with the increase in rental requirements landlords and property managers should work with a well-qualified tenant screening agency in order to stay fully compliant with law.”

TenantScreeningUSA.com is a third-party background screening company that provides tenant background 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 customize a tenant screening package specific to a managers unique requirements.

Notes:

1. wsj.com/articles/big-jump-in-americans-saying-renting-is-cheaper-than-owning-1539705295
2. ozarksfirst.com/news/more-people-choose-to-rent-not-to-own-in-springfield/1531904141
3. cnbc.com/2018/10/25/david-bach-explains-when-you-should-rent-a-home-instead-of-buy.html

Successfully running a rental property is a tremendous undertaking, one fraught with a variety of pitfalls, challenges, and, hopefully, reward.  Across the country any number of laws governs how rental properties operate, from zoning to the use of tenant screening reports.  One significant potential legal battlefield involves evictions.

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Evictions are an everyday part of the rental experience, one that is as big a challenge as one can get, but it is an important tool utilized by landlords and property managers, specifically in removing individuals that run afoul of contractual and legal obligations.”

Evictions must be conducted in a legal and lawful manner.  Failure to do so could result in legal action.

In Springfield, MA owners of a rental property faced a legal challenge with tenant screening policies.

From masslive.com (Oct 04, 18):

A judge’s finding that the owners of a State Street apartment building discriminated against three tenants who were participating in a substance use recovery program sends a message to other landlords, said the executive director of the agency that filed the complaint. ⁽¹⁾

Across the country tenants, courts, and landlords feel the pain.  In Mississippi, everyone involved feels the pain as the courts cycle through thousands of evictions.

From DJournal (Oct 01, 18):

Justice courts serve as Mississippi’s first step of the judicial system, and hear small-claims civil cases, such as misdemeanor criminal cases and some traffic offenses. These are not courts of record, most defendants are not represented by counsel and the judges are elected locally. But, they are efficient. And it’s here where most evictions in Jackson land.

Mississippi ranks eighth in the nation for evictions, according to the Eviction Lab, a Princeton-based research team that compiled every eviction record in the country from 2000 to 2016. And Jackson ranks fifth highest for cities with 100,000 people or more. ⁽²⁾

“Ultimately,” Almeida states, “Evictions will remain highly contentious and lawsuits will continue over legal and lawful use.”

In Huntsville, Alabama a group of tenants brought suit against a support group that provided housing.

From WAFF.com (Oct 01, 18):

A local group is slapped with a lawsuit after tenants receive questionable evictions.

And it goes deeper; these same tenants contacted WAFF to highlight the living conditions at their apartment complex in Huntsville and the group over it, promising to bring people in off the streets. ⁽³⁾

The tenants involved in potential legal action had been served with a 24-hour eviction notice, which is illegal in Alabama.

Almeida states: “Regardless of the rental situation, evictions will occur.  And there is definitely a right way and a legal way to conduct an eviction.  Ultimately landlords and property managers must comply with all laws governing the eviction process.  Failure to do so could result in a lawsuit.  A best practice remains for all landlords and property managers to work with a well-qualified third-party tenant screening agency in order to remain fully compliant with law.”

TenantScreeningUSA.com is a third-party tenant screening company that offers thorough, affordable, and secure tenant background 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.  They are also a proud member of NAPBS.

Notes:

1. masslive.com/news/index.ssf/2018/10/court_discrimination_ruling_se.html
2. djournal.com/mississippi-today/repeat-evictions-take-toll-on-tenants-justice-courts-and-landlords/article_f7331742-340a-597f-aab0-f0d4bb41a06f.htm
3. waff.com/2018/10/02/huntsville-group-slapped-with-lawsuit-over-evictions/

What is a bad tenant?

Obvious bad tenants are those that break all rules.  Loud music into the night, dealing drugs, rude or inappropriate behavior can all label someone a bad tenant but a true bad tenant might be that individual that fails to vacate a property after eviction.  One whose behavior is so disruptive that a landlord or property manager has no alternative but to evict is undeniably a bad tenant.

Adam Almeida, President and CEO of TenantScreeningUSA.com comments: “Evictions are always a challenge, regardless the situation.  A very quiet and seemingly normative family may fall vastly behind on rent and force an eviction or you have those truly bad tenants that are so disruptive a landlord is forced to evict.  The key, obviously, is to prevent eviction from occurring in the first place but that can be a challenge in its own right.”

Maintaining a safe and secure property is certainly key in preventing bad tenants.

A landlord in San Bernardino recently faced the challenge of bad tenants when a gun fight broke out which injured eight people.

From ABC7.com (Sep 07, 18):

Lawhead said violence in apartment buildings is a problem all across the city. It’s a problem the department is now making a top priority by strengthening their crime-free, multi-housing plan.

He said it starts with the landlords.

“We have a number of property owners that do the minimum. We shouldn’t have to come in and tell you who your bad tenants are, you should be doing good enough work on the front end to identify your bad tenants and get them out of the complex,” he said. ₍₁₎

Creating a safe environment for existing and potential tenants goes a long way.  A property with 24-hour security and surveillance could greatly reduce certain bad tenants.

Yet, evictions are often difficult for landlords especially with bad tenants.

In Washington DC a rash of bad tenants continues to frustrate local landlords and the good tenants.

From WashingtonTimes.com (Aug 30, 18):

…attorney Emilie Fairbanks, who specializes in landlord-tenant issues, said it’s a “fault of D.C. law” that bad tenants are difficult to evict. Not even restraining orders or criminal convictions can expedite the eviction process, which can take up to a year, she said.

Dorene Haney of the law firm Nathan A. Neal & Dorene M. Haney noted that D.C. law allows problem tenants the opportunity to mend their ways before being evicted. An eviction can be halted if a tenant ceases his or her disruptive or non-compliant behavior within 30 days of being served an eviction notice by a landlord, she said. ₍₂₎

What is a landlord to do to solve the issue of bad tenants?

Almeida states: “It may be impossible to completely eliminate bad tenants.  But prevention may be possible.”

Almeida suggests that landlords work with local police in creating a safe environment for rental property, create a professional process for vetting potential tenants, and providing regular and standard upkeep to a property.

“Also,” Almeida says, “a thorough tenant background check one with reference checks, eviction records and criminal background checks review would greatly benefit the vetting process.  And working with a well-qualified third-party tenant screening agency remains a best practice for that process.”

TenantScreeningUSA.com is a third-party tenant screening company available to provide all the data and information a property manager requires in making a sound decision on a potential tenant, both traditional and vacation.  With a well-trained and highly dedicated staff, TenantScreeningUSA.com can compile data and provide essential reports required to make a well-informed tenant selection decision.

Notes:

(1)   abc7.com/san-bernardino-police-focus-efforts-on-apartments-after-recent-shooting/4178176/

(2)   washingtontimes.com/news/2018/aug/30/dc-residents-have-little-help-in-dealing-with-bad-/

The Department of Housing and Urban Development is tasked with enforcing the Fair Housing Act and one of the key tools used in enforcement is the Disparate Impact Rule, one that is used to protect against discrimination, either consciously or subconsciously engaged.  Adam Almeida, President and CEO of TenantScreeningUSA.com opines; “Anytime HUD reviews core policies, such as the disparate impact rule, landlords and property managers should take note and be aware that potential changes to tenant screening policies could be forthcoming.”

The Fair Housing Act is enforced by the Department of Housing and Urban Development (HUD) oftentimes by the utilization of the Disparate Impact rule.  Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Landlords and property managers should take note anytime HUD reviews core policies, especially the use of the Disparate Impact rule, as this could signal potential change to tenant screening and tenant background checks.”

Under the previous administration the use of the disparate impact rule was enacted and became a critical component with the enforcement of the Fair Housing Act.

From HousingWire.com (May 10, 18):

Changes could be on the way for the Department of Housing and Urban Development’s disparate impact rule, a rule enacted by HUD during the Obama administration and used as a way to enforce the Fair Housing Act.

Under HUD’s rule, lenders, landlords, and other housing providers can be held liable for discrimination against protected classes even if it was not their intent to discriminate.

The use of disparate impact was challenged all the way up to the Supreme Court, which ruled in 2015 in favor of disparate impact. ⁽¹⁾

Almeida states: “Disparate Impact cases have appeared across a number of actions related to housing, such as banking and mortgage lending, as well as tenant screening, and can be enormously complicated.  A best practice remains that landlords and property managers’ work with third-party tenant screening agencies to remain fully compliant with law, especially those against discrimination.”

The rule of Disparate Impact can be complex.

From ArnoldPorter.com (May 18):

HUD’s disparate impact regulation was finalized in 2013, at which time the vast majority of federal courts of appeals had agreed that the FHA prohibits any practice that produces a discriminatory effect, regardless of discriminatory intent, but had taken various different approaches to determining liability under an “effects” standard. According to HUD, the disparate impact regulation was necessary to “formalize [HUD’s] long-held recognition of discriminatory effects liability under the [FHA]” and to provide “consistency nationwide.”

HUD’s current regulation establishes a burden-shifting framework for adjudicating disparate impact claims under the FHA, pursuant to which the charging federal agency or private plaintiff has the initial burden of demonstrating that a challenged practice caused, or predictably will cause, a discriminatory effect. A practice is deemed to have a discriminatory effect if it actually or predictably results in a disparate impact on a group of persons or creates, increases, reinforces, or perpetuates segregated housing patterns because of race, color, religion, sex, handicap, familial status, or national origin. ⁽²⁾

Almeida concludes: “When HUD decides to review policy landlords and property managers should take immediate notice.”

TenantScreeningUSA.com is a third-party tenant screening agency 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.  They are also a proud member of NAPBS.

Notes:

1. housingwire.com/articles/43340-hud-signals-changes-could-be-coming-to-disparate-impact-rule
2. arnoldporter.com/en/perspectives/publications/2018/05/hud-to-evaluate-disparate-impact

In the city of Buffalo, one of the poorest cities in the country, alleged discrimination against Section Eight renters may have occurred and subsequently caused significant concern within certain protected classes.

Adam Almeida, President and CEO of TenantScreeningUSA.com states:  “Discrimination against any class of individual is troubling.  A variety of classes have protections under law and violation of these protections could incur expensive legal action.”

From InvestigativePost.com (Jul 05, 18):

Buffalo’s fair housing law was put in place to protect the thousands of city residents who rely on government assistance to pay their rent. But, in the 12 years since the law passed, the city has done little to enforce it, despite receiving at least 25 complaints like the one Adkins filed, most of them borne out by undercover testing – the gold standard in housing discrimination cases.

In many cases, it’s unclear whether city officials even decided whether a landlord had violated the law. Those decisions, when they were made, were painfully slow. And even when a landlord was found to have discriminated, in most cases there’s no indication that the city took any action against them. ⁽¹⁾

Almeida adds: “The challenges in housing in Buffalo highlights the immediate need for all landlords and property managers to work with a well-qualified third-party tenant screening agency to conduct all tenant background checks.  This method still remains a best practice.”

Discrimination is illegal in housing under the Fair Housing Act of 1964.

From Nolo.com (No Date Given):

• The federal Fair Housing Acts apply to all aspects of the landlord-tenant relationship. A landlord may not:
• advertise or make any statement that indicates a limitation or preference based on race, religion, or any other protected category
• falsely deny that a rental unit is available
• set more restrictive standards for selecting tenants or refuse to rent to members of certain groups
• before or during the tenancy, set different terms, conditions, or privileges for rental of a dwelling unit, such as requiring larger deposits of some tenants or adopting an inconsistent policy of responding to late rent payments
• terminate a tenancy for a discriminatory reason. ⁽²⁾

One small example of a penalty a landlord or property manager might face by breaking discrimination laws is in Menlo Park, California.

From The Almanac, a local Menlo Park community news webpage (Jul 7, 18):

A violation of the ordinance would be considered a misdemeanor, punishable with fines up to $1,000 or six months in county jail. ⁽³⁾

Almeida states: “Tenant screening is a critical part of the vetting process with new applicants.  Landlords are always seeking out long-term stable tenants.  Shortcutting the screening process and discrimination often proves to be a costly mistake.  A best practice remains for all landlords and property managers work with a well-qualified third-party tenant screening agency to stay fully compliant with all laws state and federal regarding tenant screening.”

TenantScreeningUSA.com is a third-party tenant screening company specializing in tenant background checks for small to mid-size rental property units.  With a highly trained staff, TenantScreeningUSA.com remains focused on full compliancy with existing law as well as remaining involved with new or pending legislation.

Notes:

(1)    investigativepost.org/2018/07/05/buffalo-not-enforcing-its-fair-housing-law/

(2)    nolo.com/legal-encyclopedia/free-books/renters-rights-book/chapter5-2.html

(3)    almanacnews.com/news/2018/07/06/menlo-park-bans-landlords-from-discriminating-against-rent-subsidy-recipients