Best Practice in Tenant Screening

As single family dwellings become increasingly expensive and as the latest generation of college graduates become more transient in lifestyle choices, the availability and the cost of housing has become problematic.

Across the country the demand for single family housing has quickly become a rental boom.  Cities large and small across the United States have not been able to keep up with the demand for rental units.  Properties large and small often have a waiting list for units.  Securing a rental unit or apartment has become increasingly competitive.

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “As more and more people are priced out of home ownership or choose to not own a home, renting has become a greater challenge.  Unit prices are climbing as availability shrinks.  In order to get the very best tenant a landlord really should work with a well-qualified third-party tenant screening agency to conduct tenant checks.”

Tenant Screening is one of the key elements of the rental process and one of the most important.

Almeida states:  “A tenant background check goes a long way in verifying the information an applicant provides to the landlord.  A best practice is to confirm that information through tenant screening.”

Tenant screening or, more commonly, tenant check provides a landlord and/or property manager with valuable information that allows the best decision be made for an available property.

From Forbes.com, discussing the need for a “formal tenant screening report” (Mar 08, 18):

This report should include a credit report, a criminal background check (in locations where this is legal) and an eviction report. This formal report can help you determine if a renter meets your criteria and will alert you to a history of evictions. (1)

As stated in RealtyBizNews.com defining why a tenant check should be conducted (Feb 22, 18):

A tenant background check is important for the following reasons:• To find out if they have a criminal record

  •  To choose the best tenants from your pool
  •  To check their work history
  •  To make sure that they will comply with your rules
  •  To confirm your tenant’s rental history
  •  To know which questions to ask during screening
  •  To confirm their identity (2)

There are any number of reports used in tenant screening:

  1. Consumer Credit report – Verify an applicant’s ability to fulfill financial obligations of a rental agreement.
  2. Eviction Report – Draw upon past history of a tenant’s ability to stay in a unit without formal cause for discharge or eviction.
  3. Sex Offender Registry Review – Insure the safety of existing tenants.
  4. Social Security Number Trace – Can advise previous counties of residence as well as confirm name.
  5. Criminal History Records – Drawn from the County Courthouse, this document can be the most accurate and current piece of information regarding an individual’s criminal past.

Almeida concludes: “In the end a best practice remains that landlords and/or property managers for properties large and small work with a well-qualified third-party tenant screening agency to get the information required to make a solid decision.”

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.  TenantScreeningUSA.com has a staff well versed in local, state, and federal laws regulating evictions and tenant screening.

Notes:

(1)   www.forbes.com/sites/forbesrealestatecouncil/2018/03/08/how-to-screen-potential-tenants-and-save-thousands/3/#4a3c31c7a8da

(2)   realtybiznews.com/traits-to-look-for-in-a-potential-tenant/98747118/

 

Tenant Screening and Evictions: Recent Events

Evictions are increasing across the United States and for a variety of reasons:  Higher rents and job loss are the most common.  And, subsequently, evictions can create considerable stress on families, causing disruption of routine, lifestyle, and education.

In New York, as well as across the country, tenants can get evicted for calling on police for assistance.

From the ACLU webpage (Jan 23, 18):

The second time that Laurie Grape called the police during an attack by her then-boyfriend, they told her that a third call would get her evicted. Under a local law in East Rochester, New York, three police responses to the same property within a 12-month period were once grounds for a person to be kicked out of her home. The next time her ex-boyfriend attacked her, Laurie decided to stay silent rather than risk eviction. (1)

While it is incumbent on landlord or property manager to work with a well-qualified third-party tenant screening agency in order to remain compliant with existing law, the reasons for an eviction should be taken into consideration as well.

Adam Almeida, President and CEO of TenantScreeningUSA.com opines:  “Eviction reports are a critical tool in the vetting process but understanding the reason for such an eviction may be of benefit for the landlord.”

There are instances when such a law may actually cause more harm than good.

Again, the ACLU webpage (Jan 23, 18):

When tenants are told that calling the police could result in their eviction, they stop reporting crimes or dangerous conditions, making police officers’ jobs more difficult. And nuisance ordinances are not tailored to prevent crime because they often punish landlords and tenants regardless of whether a given crime was committed by someone connected to the property where it took place. (2)

Another reason for eviction is a tax lien.  And it may not be the fault of the tenant.  When a landlord/property owner falls behind on paying for property taxes, or water/sewer bills, properties may be foreclosed on and, subsequently, property sold.  And the renters potentially face eviction.

From the New England Center for Investigative Reporting (Jan 23, 18):

The New England Center for Investigative Reporting, uncovered dozens of eviction cases across the state in the aftermath of tax lien foreclosures. (3)

Evictions also take a personal toll.

A woman and her family in Kansas City were evicted from public housing due to delinquent

utility payments.

From FlatlandKC.org (Jan 29, 18):

… fell behind on payments, and the gas was shut off to her government-subsidized apartment in Kansas City. That violated a Kansas City Housing Authority rule and caused her to lose her rent voucher. Her landlord went to court to have her removed. (4)

The loss of housing forced her children out of school, thereby disrupting their lives and educational progress.

Almeida states:  “Evictions can be harsh, but understanding the reason for eviction could be valuable to a landlord or property manager.  Knowing an applicant’s entire background through application, interview, and tenant check will allow a landlord to make a sound decision.”

Ultimately a best practice for landlords and property managers is to work with a well-qualified tenant screening agency.  Evictions happen and it is incumbent on a landlord to understand the circumstances of that eviction.  A tenant screening agency can assist with tenant background checks and maintaining compliance with all laws governing tenant screening.

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.  They are also a proud member of NAPBS.

Notes:

  1.  aclu.org/blog/womens-rights/violence-against-women/tenants-can-get-evicted-calling-police-across-new-york-and
  2. aclu.org (ibid)
  3.  necir.org/2018/01/23/renters-face-eviction-wake-tax-lien-foreclosures/
  4. flatlandkc.org/public-works/level-foundation/reporting/education-evictions-kansas-city/

 

HUD Continues to Make Changes Affecting Housing; “Change is Constant,” Opines TenantScreeningUSA.com

Disparate impact is a legal theory that HUD has used in an attempt to successfully implement all aspects of the Fair Housing Act (FHA) of 1968.  However the current administration is attempting to pull back the use of disparate impact theory as a legal enforcement tool.

From Curbed.com (Jan 05, 18):

Fresh off a failed attempt to delay a rule designed to give Section 8 housing voucher recipients more choice in where to live, Ben Carson and the U.S. Department of Housing and Urban Development (HUD) announced Friday that it’s delaying another Obama-era anti-segregation measure: the Affirmatively Furthering Fair Housing (AFFH) rule.

The AFFH rule, established in 2015, aims to realize aspects of the Fair Housing Act (FHA) of 1968 that never came to be. The FHA barred racial discrimination in housing, but not until a 2015 U.S. Supreme Court ruling did the ban include “disparate impact”: policies that are discriminatory without necessarily stating racial discrimination as an intent. (1)

Attempts have been made over the years to legally and socially desegregate housing.  During the previous administration HUD utilized the legal theory of disparate impact, a theory suggesting defacto segregation may exist in housing and landlords may preclude certain classes, specifically African-American and Hispanic groups, from fair and equal housing opportunity.

From legaldictionary.net (no date given)

Disparate impact concerns policies and procedures – in employment, housing, education, and other issues – which are not necessarily meant to be discriminatory, but which end up ultimately having an “adverse effect” on a particular class of people, based on such traits as their race, color, or religion. (2)

Adam Almeida, President and CEO of TenantScreeningUSA.com states:  “As administrations change so to does the direction policy may take.  Change is especially true with a shift in political ideology.  Leadership at HUD has changed course and is potentially moving away from the use of disparate impact as a legal course of action.”

Under new guidance from HUD the AFFH rule will be delayed in implementation.

Almeida states:  “Ultimately landlords and property managers should be aware of what is changing with the Department of Housing and Urban Development as it could eventually affect non-governmental entities and, subsequently, tenant screening.”

Tenant screening is a critical tool utilized by landlords and property managers to vet rental applicants.

Ultimately, politicians cite inconsistencies between Supreme Court findings and disparate impact and have pushed HUD toward recent changes.

From BankingJournal.aba.com (Nov. 15, 18):

The Department of Housing and Urban Development’s rule implementing the Fair Housing Act discriminatory effects standard is inconsistent with current Supreme Court precedents on disparate impact theory and could be negatively affecting HUD’s housing goals, a group of House Republicans said in a letter to HUD Secretary Ben Carson today.

“Local governments, commercial and residential lenders, issuers, developers, and other mortgage industry service providers are less inclined to participate in housing projects because HUD’s disparate impact rule does not comply with the Supreme Court’s rulings,” the lawmakers wrote. “This inconsistency will reduce housing production, which in turn will increase housing expenses for many Americans, including those who can least afford it.”(3)

Almeida concludes:  “The key takeaway is that change is constant.  Whether it is a change in policy or in governance ideology change is constant.  A best practice remains that landlords and/or property managers work with a well-qualified third-party tenant screening agency in order to remain complaint with any potential change affecting tenant screening.”

TenantScreeningUSA.com is a third-party background 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)  curbed.com/2018/1/5/16854218/hud-fair-housing-delay-obama

(2)  legaldictionary.net/disparate-impact/

(3)  bankingjournal.aba.com/2017/11/gop-lawmakers-huds-disparate-impact-rule-inconsistent-with-supreme-court-precedent/

 

Near Miss Evictions Due to Bad Luck, Bad Information, and Bad Tenant Checks

Evictions happen every day to thousands of people across the country.  There are a variety of reasons for evictions, some good and some questionable, but they happen nonetheless.  Landlords and/or property managers utilize eviction reports as a key tool in the tenant screening vetting process.

Adam Almeida, President and CEO of TenantScreeningUSA.com states:  “No one wants an eviction.  For landlords they can be costly and take months, even years, to finalize.  And for tenants eviction is a black mark on their rental history, one that may make it difficult to find another rental unit.”

Evictions can occur for a variety of reasons.

In Hendricks County, Indiana a woman almost lost her apartment due to a stolen check.

From theIndyChannel.com (Dec. 05, 17):

A Hendricks County woman said a stolen rent check almost caused her to be evicted from her apartment.

Elizabeth McKee says she’s lived at the Bradford Park Apartments for three years and has always paid her rent on time. (1)

A few days later McKee received notice of non-payment and was told the eviction process would begin if rent did not get paid by the 10th of the month.  Eventually the rental company realized that other checks appeared to have been stolen and put off eviction pending second payment.

In Las Vegas a family was evicted due to a faulty tenant background check that utilized a criminal history report.  Upon review, and after the eviction, it was discovered that the criminal report did not include any felonies, but only minor violations that had been dismissed years prior. The family has the option of filing a complaint with HUD, but does have to find other housing arrangement. (2)

From KTNV.com (Nov. 21, 17):

The U.S. Department of Housing and Urban Development sets guidelines when it comes to housing providers using criminal records. A memo issued in 2016 states, “Policies that exclude persons based on criminal history must be tailored to serve the housing provider’s substantial, legitimate, nondiscriminatory interest and take into consideration such factors as the type of the crime and the length of the time since conviction. Where a policy or practice excludes individuals with only certain types of convictions, a housing provider will still bear the burden of proving that any discriminatory effect caused by such policy or practice is justified. Such a determination must be made on a case-by-case basis.” (3)

Almeida states: “It is unfortunate when a family is evicted due to poor tenant screening, but it does highlight the need for landlords and/or property managers to work with a well-qualified tenant screening agency in order to provide legally compliant tenant checks.”

Often time’s evictions are utilized to clear challenging tenants, those not necessarily complying with the rules.

A property in Zanesville, Ohio received an abatement warning and the landlord began to take steps to clean up the property through the eviction process.

From ZanesvilleTimesRecorder.com (Nov. 08, 17):

Following an abatement warning, the owner of an apartment complex located at 1252 Edwards Lane issued residents a zero tolerance notice for illegal activity and nearly doubled the rent.(4)

By increasing the rent some nuisance tenants could not pay and were either evicted or moved.

Almeida adds: “Policies need to be the same for all tenants.  Everyone must be treated fairly and in an equal manner otherwise legal problems could arise should a tenant be singled out and treated separately.  A best practice remains that landlords and property managers should work with a well-qualified tenant screening agency.”

TenantScreeningUSA.com is a third-party tenant screening company that can provide screening packages for landlords and property managers with property holdings large and small.  A highly trained staff can assist in creating Tenant Screening packages that will keep landlords and property managers in compliance with current and potential laws and regulations.

Notes

(1)    theindychannel.com/news/local-news/hendricks-county/woman-says-she-was-nearly-evicted-after-someone-stole-her-rent-check-from-apartments-dropbox

(2)    ktnv.com/news/make-a-wish-family-forced-out-of-home

(3)    ktnv.com/news/make-a-wish-family-forced-out-of-home

(4)    zanesvilletimesrecorder.com/story/news/2017/11/08/landlord-doubles-rent-evicts-nuisance-tenants-improve-property/844579001/

 

Study notes San Francisco, San Jose with Lowest Eviction Rates in US

A recent study notes San Francisco/San Jose metropolitan area as having the lowest eviction rates nationwide.  Adam Almeida, President and CEO of TenantScreeningUSA.com notes:  “Anytime evictions make headlines landlords and property managers should be reminded to make sure their tenant screening policies are current with existing law and understand that working with a well-qualified third-party tenant screening company continues to be a best practice.”

San Francisco/San Jose sit atop of a recent study investigating eviction rates as the lowest nationally, highlighting evictions in national news.  Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Whenever evictions make the news landlords and property managers, knowing that eviction checks are a critical part of the tenant vetting process, should review current policies with a third-party tenant screening agency to ensure compliance with law.”

While evictions are down in San Francisco/San Jose this had not always been the case.  Prior to a recent revision to existing law, Eviction Protection 2.0, evictions ran rampant.

From the San Francisco Examiner (SFExaminer.com; Nov. 05, 17):

Between October 2013 and September 2015, there were 4,304 evictions filed with the Rent Board, 2,200 of which were nuisance- or roommate-related. After Eviction Protections 2.0 passed, total evictions have dropped to 4,102 filed evictions between October 2015 and September 2017. (1)

In reaction to the climb in evictions revisions were made to existing law.

Again, from the San Francisco Examiner (SFExaminer.com; Nov. 05, 17):

What has happened, say tenant advocates, is a handy suite of protections passed in 2015 are kicking in. Eviction Protections 2.0, the wonky rewrite of San Francisco’s rent-control law, is working.

“Stronger rent projections led to an immediate drop in these kinds of evictions,” said Gen Fujioka, of the Chinatown Community Development Center, a nonprofit housing group.

So-called “nuisance” evictions — attributed to actionable offenses hanging laundry outside the window or leaving shoes in the hallway — and evictions for breach of lease when bringing in new roommates are measurably down from two years ago. (2)

Almeida notes: “Evictions have been a challenge in San Francisco and San Jose for several years due, in part, to some landlords wanting to gain higher paying tenants and utilizing potentially extralegal means.”

With revisions in place evictions decreased, as details from a recent study have shown.

From SF.Curbed.com (Oct. 27, 17):

Rental site ApartmentList released a study Thursday breaking down eviction data in major metros across the U.S. and came up with some good, albeit startling, news for the Bay Area: San Jose and San Francisco had the lowest and second-lowest eviction rates nationwide, respectively. (3)

Almeida states:  “Evictions will remain an important factor in vetting new tenant applications.  Revisions in law in San Francisco and San Jose metropolitan areas led to a decrease in overall evictions.  Subsequently, landlords and property managers should take note that new laws and revision to existing law will continue to affect tenant screening.  A best practice remains to work with a well-qualified tenant screening agency in order to stay current with existing law.”

TenantScreeningUSA.com is a third-party background screening company that provides tenant checks to landlords and property managers for all sizes and types of rental complexes, including self-storage.  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)    sfexaminer.com/tenants-find-stability-eviction-protections-2-0/
(2)    ibid
(3)    sf.curbed.com/2017/10/27/16557562/san-francisco-san-jose-owest-eviction-rate-study

Evictions: A Tale of Two Cities, Boston and Detroit

Evictions are a common tool utilized by landlords and property managers to remove tenants for a variety of reasons, which could include non-payment of rent, property damage, or some similar breach of a rental contract.

Adam Almeida, President and CEO of TenantScreeningUSA.com states:  “Evictions are increasingly utilized in rental communities to clear properties for new tenants that could pay significantly more rent.  It is a long and costly process but one that landlords often pursue in not always the most scrupulous path.”

Boston and Detroit are attempting to crackdown on evictions but it is a challenging prospect.

Detroit

The rental market in Detroit is often plagued by scrappers and thieves.  It has become so bad that an informal “24-hour rule” has been put in place.

From The Detroit News website (Oct. 05, 17):

The dozens of working furnaces and water heaters sitting in Chris Garner’s warehouse sit idle because of what he calls his “24-hour rule.”

Within a day of a tenant moving out of one of his Detroit rentals, Garner, the owner of a Taylor-based property management company, has staffers remove the systems and board up the home. It’s all to deter scrappers and thieves. They won’t reinstall, he said, until 24 hours before a new tenant is scheduled to move in. (1)

Challenges are with property owners putting very little money into rental properties, often due to the demands and cost of stringent annual property inspections.  Due to low quality of properties tenants often refuse to pay rent thereby forcing the onset of the eviction process.

The Mayor of Detroit, as well as the City Council, seeks to correct the situation.

From The Detroit News website (Oct. 05, 17):

Detroit Mayor Mike Duggan and other city officials say part of the solution to improve city rental housing is a landlord crackdown, and last month pledged to launch a campaign to prevent landlords from renting substandard homes. That includes stopping them from collecting rent if they don’t comply with inspections.

The city admits most rentals haven’t been inspected. (2)

Boston

In Boston steps are being taken to better manage evictions.

From the Boston Globe website (Oct. 04, 17)

Boston’s City Council overwhelmingly approved a set of regulations Wednesday that could make it harder for landlords to evict tenants without just cause, while giving city officials better ways to track how many housing evictions are occurring and where.

Called the Jim Brooks Community Stabilization Act — named after the late social justice advocate — the measure would require landlords to notify the city whenever they move to evict a tenant, for whatever reason. The city and landlord would then have to alert the tenant to his or her housing rights, such as the ability to appeal to a state Housing Court, and the tenant could be directed to advocacy groups. (3)

These steps are designed to help protect against speculators taking over properties and increasing rents until tenants can no longer afford the rent and either leave or are evicted for failure to pay.

Almeida states:  “Evictions are a challenge.  It is an important tool that landlords need in order to protect their investment but it can be used more maliciously in order to remove existing tenants in favor of potential higher paying tenants.”

Evictions remain a complex tool and one that landlords and property managers should strongly consider before implementing.  A best practice remains to work with a well-qualified third-party tenant screening company to remain current and 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, including self-storage.  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)   detroitnews.com/story/news/special-reports/2017/10/05/detroit-evictions-landlords/106351462/
  • (2)   detroitnews.com/story/news/special-reports/2017/10/05/detroit-evictions-landlords/106351462/
  • (3)   bostonglobe.com/metro/2017/10/04/city-council-bill-would-better-regulate-and-track-evictions/pZSRLVJbazy0pIxgWdDyTP/story.html

Landlord-Tenant Relationships are Critical to a Successful Housing Relationship

In September of 2017 Hurricane Harvey ripped through Houston, Texas causing countless millions and billions in damage as well as displacing tens of thousands of people.  Winds from Harvey caused significant damage but the record level rainfall created greater damage.  Homes and apartments were rendered uninhabitable and could remain so for month’s even years.

In a recent article from the Huffington Post (Sep 05, 17):

Under Texas statutes, either a tenant or a landlord can break a lease for residences deemed “totally unusable.” If a property is partially useable, a court would have to determine if rental costs could be reduced.

Meanwhile, hundreds of residents who were forced to evacuate a flooded apartment complex in Katy, Texas, have been given eviction notices, The Houston Chronicle reported.

The residents have been given less than a week to retrieve whatever property they can, a letter from the property manager said. The letter also said rental charges for the last few days of August will be refunded, according to the Chronicle.

Disputes between landlord and tenants are among the first conflicts to emerge in the wake of a hurricane, lawyer Saundra Brown, a disaster manager at Lone Star Legal Aid, told the newspaper. (1)

Conflict between landlord and tenants can be avoided if the situation is handled properly from the very beginning of the relationship.

Adam Almeida, President and CEO of TenantScreeningUSA.com states:  “From the point of the initial application through the tenant check landlords and property managers need to be very clear as to the exact expectations they have with the applicant.”

Certainly easier said than done in certain instances, but a clear outline of rules and requirements for a tenant is key.

“Landlords need to conduct the same vetting process with each perspective tenant, “Almeida states, “and this continuity goes a long way in creating a positive relationship with tenants.”

Other than the general niceties of an interview process a landlord should explain what each document in a background check covers, what information is drawn, and how it is used. And an agreement should be in place as to conflict resolution, should it arise, and how to communicate any form of grievance.

Almeida states:  “Every state is different in recording conflict but a general rule of thumb is communicating in written form; generally through US Postal or email, where copies can be maintained and reviewed as needed.  And always keep copies of written communication.”

As the housing crisis in the US continues to grow, greater pressure is placed upon tenants and landlords.  Tenants worry that if they bring forth an issue they may face some sort of penalty or potential eviction and landlords are always looking for long-term stable tenants.  Each party has a vested interest in creating an amicable living arrangement and tenant-landlord relationship.

It all begins with the applicant vetting process.

“There are a number of documents reviewed as part of a tenant background check,” Almeida adds, “from consumer credit reports, criminal background checks to eviction records and sex offender registry review, and others.  Each is unique and should be explained to the applicant. Creating a comfortable environment goes a long way in creating a comfortable landlord-tenant relationship.”

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, including self-storage.  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)    huffingtonpost.com/entry/harvey-landlords-rent-flooded-properties_us_59ae18a5e4b0354e440bfa95

Tenants Face Discrimination in Renting; Cities Fight Back; A Continuing Evolution in Tenant Screening, States TenantScreeningUSA.com

Tenants face discrimination due to criminal pasts and/or Section 8 housing vouchers.  Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Seattle and Berkeley are two example cities fighting back against growing discrimination in housing and points to an immediate need for landlords and property manager’s work with third-party tenant screening agencies in order to maintain compliance with existing and potential changes in law.”

Discrimination is a challenge faced by people with recent criminal pasts as well as those that require Section 8 housing. Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Two cities, Berkeley and Seattle, are looking to enact legislation to alleviate discrimination in housing and these actions point to an urgent need for landlords to work with well-qualified third-party tenant screening agencies in order to remain compliant with existing and potential change in law.”

Seattle Mayor Ed Murray is working with a task force to create a bill to prohibit landlords from automatically rejecting individuals with criminal histories.

From SeattleWeekly.com (Aug. 03, 17):

Sponsored by Mayor Ed Murray and the product of one of his ubiquitous task forces, the Fair Chance Housing bill would prohibit landlords from automatically rejecting anyone with a criminal record in advertisements. Also, when screening applications, landlords could only look at convictions on an applicant’s record in the past two years. The bill follows the trajectory set by a 2013 ordinance which similarly prohibits discrimination against former prisoners applying for employment. (1)

The Seattle bill has lofty goals but should remind landlords and property managers to work with a third-party tenant screening agency in order to remain fully compliant with existing and potential changes in law.

Almeida states: “Just as in the employment sector changes are coming fast and furious to the tenant screening arena. Best practice remains working with a tenant screening agency in order to remain in compliance with law.”

Berkeley is attempting to reduce discrimination in housing regarding Section Eight renters.

From the Mercury News (mercurynews.com; Aug 03, 17):

…the city council took preliminary action to prohibit landlords and rental agents from refusing to rent to someone based on their source of income. Elected officials and tenant rights advocates said their goal was to help more people on a federal subsidy program for low income and disabled people to find housing. If the ordinance is approved on a final vote Sept. 12th, Berkeley would become the first East Bay city to pass such a law. (2)

Creating a fully-comprehensive tenant screening protocol is a critical challenge to landlords, but actions in Seattle and Berkeley point to the rapid change in law.

Almeida adds: “Changes in law could also carry potential financial penalty.”

From the Mercury News (mercurynews.com; Aug 03, 17):

Under the law, landlords could not refuse to rent to a person solely because they are on housing assistance or give preference to someone whose entire income is earned from a job as opposed to receiving a government subsidy. Violating the ordinance carries a potential fine of up to $1,000 and or jail time for up to six months. A tenant is also entitled to receive up to $400 in damages in addition to fees charged by attorneys. (3)

Almeida concludes: “Working with a third-party tenant screening agency is key to a landlord’s success is staying compliant with existing law and ahead of potential change in law, and the risk of penalty.”

TenantScreeningUSA.com is a third-party tenant screening company with highly trained investigators well versed in the legal and lawful use of criminal history reports, and all public record reports, as part of a tenant check.
Notes:

(1) seattleweekly.com/news/should-landlords-be-allowed-to-discriminate-against-former-prisoners/
(2) mercurynews.com/2017/07/31/berkeley-makes-move-to-ban-discrimination-against-low-income-renters/
(3) ibid…

 

College Student Renters, Subletting, and the Happy Landlord

As memories of an eventful 4th of July weekend begin to fade thoughts of freshman year begin to percolate in the minds of many anxious students.  Finalizing financial aid, finding the right classes, enrolling in the right classes; the process of going to college full-time can be overwhelming.

Many students will have the luxury of living at home, commuting to school, and maintaining the semblance of a balanced life, but for some going to college represents leaving home and living far from the comforts of mom and dad’s pocket book.

The prospect of renting to college students for landlords and property managers is increasingly bright.  And, in some cases, purchasing a home near a college may prove to be a bigger bargain for parents than paying rent.

From Zillow (Sep. 04, 14)

With the combination of high rates of affordability and rapidly rising rents, parents with kids just starting out in college may want to consider purchasing a property for the remainder of their 4-year stay rather than paying rent.

Zillow data shows that the demand for off-campus rental housing is rising, creating a large spike in rental prices that show no sign of slowing down. On the other hand, home values are still below their peak levels and mortgage rates remain low, making for great bargains for buyers who plan to own their home for at least three years. (1)

Adam Almeida, President and CEO of TenantScreeningUSA.com states:  “Whether an incoming freshman lives at an existing property or one that is purchased, there may be the additional opportunity of sub-letting.  Other friends or classmates can fill the empty rooms and potentially provide additional income.”

Regardless if a property is a single family dwelling or an apartment complex a sublet makes sense for a number of reasons.

From Rent.Uloop.com (Jul. 01, 17):

Allowing subletting will make your building more attractive for students. Knowing that they have the option to find someone to pay for the room when they are not there is a definite incentive to choose one building over another, and they will be more willing to keep their lease if they know they can get other people to contribute. Yet for you as the property owner, you now take the risk of allowing a student to be an intermediate between you and the subtenants. (2)

Almeida states: “Having a sublet of a property can provide continued occupancy, reduced maintenance costs, and ensured income.  But the key to a successful sublet is the same as any rental situation.  Every sublet renter must go through a thorough vetting process and tenant background check, as well as sign a well-written rental agreement, one that meters out the exact demands and requirements of property management.”

Ultimately a thorough tenant check will serve as a best practice for both primary renter and sub renter.  The same policy holds true for a home purchased in lieu of renting and extra rooms are rented out.  As long as the communication between renter and landlord remains open, the policies and requirements understood, and all promises fulfilled, the landlord/renter relationship should be very positive.

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, as well as single family dwellings.

Notes:

(1) zillow.com/blog/college-towns-breakeven-2014-159125/

(2) rent.uloop.com/news/view.php/241475/Make-Subletting-a-Breeze-for-Your-Residents-Dos-and-Donts

 

 

Vacation Rental Background Screening, Don’t Miss the Boat

As the days get longer, the nights get shorter, and kids are out of school and thoughts of the summer vacation arise and important decisions will be made.  Where to go?  What to do? How long should a family get away?

In many parts of the United States families take long-term vacations.  In order to save money these families may turn to vacation rental properties.

Long-term vacation rentals offer a great many amenities that a standard hotel may not: A kitchen to prepare meals in, larger living space to spread out, and more bedrooms for the bigger families or those that invite friends along for the getaway.  The affordability of a long-term vacation rental often outweighs daily maid service, an on-site pool, or room service.

Every year owners of vacation rental properties work tirelessly to attract long-term vacationers.  The profit of a fully booked summer can pay an entire year’s property mortgage or, if the property is wholly owned, create significant profit.

But landlords and property managers must take the same care with long-term vacation rentals as they might with a traditional rental situation.  Thorough tenant checks should be standard.

Adam Almeida, President and CEO of TenantScreeningUSA.com states:  “It is important for a landlord to treat any landlord-tenant relationship in a similar manner.  Even though a rental relationship that lasts only a month or two, and may be paid in full in advance, one should take care to protect property.”

A tenant background check offers three types of protections:  Person, Property, and Perception.

Person:  This protection is for neighbors or other tenants of a property.  Running a criminal history and sexual predator registry can afford a degree of security.

Property:  Perhaps the most important protection for a vacation rental, protecting property from loss could be critical to a single unit landlord.  Understanding the financial status of a rental could go a long way in protecting property, but a thorough tenant check, one that utilizes public records as well as a complete vetting interview provides a barrier to individuals with nefarious intent.

Perception:  Not as important, perhaps, with vacation rentals, but protecting the perception of a given property goes a long way in ensuring the desirability of a property.  No one wants to rent a property that has a history of police calls and related challenges.

Almeida adds:  “The correct and proper use of public records combined with a thorough tenant vetting interview goes a long way in protecting a property.”

A long-term vacation tenant check may include:

  • Consumer Credit Report – Verify financial capability to fulfill a tenant agreement
  • Eviction Records – Verify any previous challenges a tenant may have had in a rental agreement
  • Criminal History – Provide greater protection for neighbors and other tenants
  • Sexual Predator Registry – Additional surety for neighbors and other tenants

Almeida states:  “Often time’s individuals with ill intent are stopped cold if they know a landlord conducts a thorough vetting process of all tenants.  A tenant screening that utilizes public records and verification.”

In the end a best practice for landlords of long-term vacation rentals is to conduct a thorough tenant check in order to provide protection to their financial investment.

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 required to make a well-informed decision.