Landlords and property managers have a tough enough job keeping track of repair and maintenance on a property, and when one considers the task of dealing with new and existing tenants, the role becomes increasingly complex.

But it need not be. Once a landlord has the right tools and knowledge managing a property can become relatively easy.

First and foremost a landlord must attract the right tenant.

One of the key tools a landlord can utilize in vetting a new tenant is a background. Often times a tenant background check will include a wide variety of public and private data points. When combined together these key pieces of information provide a landlord an important resource in making a rental decision.

Besides a consumer credit report, a criminal history can be one of the more common public records a landlord reviews.

From American-Apartment-Owners-Association.org:

It’s a fact that employing strong tenant screening practices help identify tenants who will end up being a good fit for your rental property, and ‘weeds out’ many of the applicants who would cause you problems. A tenant criminal history check is a key piece of any solid tenant screening process. (1)

Criminal history reports are documents drawn from county courthouses and are the most current and accurate public record available.

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “The Criminal History report is an important document utilized in background screening, both for pre-employment purposes and rental agreements. Understanding an individual’s criminal history is extremely important.”

A best practice for tenant screening is to utilize a third-party tenant screening company, one that is up-to-date and conversant on all current local, state, and federal laws governing the use of public records.

From American-Apartment-Owners-Association.org:

A tenant criminal history check conducted by a third party company (your tenant screening company) is considered an investigative report by the FCRA. The FCRA requires that landlords follow certain procedures in ordering and utilizing an investigative report. These regulations include getting the applicant’s consent to agree to a search, as well as following adverse action procedures. Basically, if a landlord decides to not rent to a person based on information they find in the investigative report, the landlord must notify the applicant by mail (with a document called an adverse action letter). The applicant then has a chance to dispute the information with the tenant screening company. (2)

Once a tenant is in place it is critical to deal with any issues quickly and efficiently. It is important to have a dispute resolution program in place and document all issues. (3)

Unfortunately, not every dispute will have a resolution that is mutually agreeable. This may lead to the eviction process. And evictions can be very challenging.

From Nolo.com:

A landlord can’t begin an eviction lawsuit without first legally terminating the tenancy. This means giving the tenant written notice, as specified in the state’s termination statute. If the tenant doesn’t move (or reform — for example, by paying the rent or finding a new home for the dog), you can then file a lawsuit to evict. (4)

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Evictions are a tricky process and a landlord must follow very specific state mandated procedures. Failure to comply to the letter of the law may create a legal quagmire. It may be beneficial to a landlord to work with a lawyer specializing in evictions.”

Being a landlord has a great many challenges. When one has a solid tenant screening policy in place, one that includes a thorough tenant check, avoiding dispute and potential eviction is possible.

TenantScreeningUSA.com is a third party tenant screening company serving the small to mid-size rental community. With a highly trained and dedicated staff, TenantScreeningUSA.com can create a low-cost and fully compliant tenant screening package to fit ones needs.

Notes:

1. american-apartment-owners-association.org/property-management/tenant-screening/best-practices-use-tenant-criminal-history-to-screen-tenants/
2. american-apartment-owners-association.org/property-management/tenant-screening/best-practices-use-tenant-criminal-history-to-screen-tenants/
3.  lpmmags.com/6-easy-ways-to-handle-tenant-disputes/
4.  nolo.com/legal-encyclopedia/evictions-landlord-rules-29740.html

Recent attacks by in-home contractors highlight the urgent need for background checks for any working professional conducting in-home repairs or installations. Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Tenants have the right to know who is entering their homes and landlords and/or property managers, as well as tenants, must have the ability to review background screening policies of all contractors.

Whether or not one owns or rents the right to safety and security while in the home or apartment is paramount. Everyday people allow contractors into their homes to provide installations or repairs. Often these contractors are complete strangers and very little is known about their background. A commonplace situation could become a tragic situation very quickly.

Home owners, as well as landlords and/or property managers, should have the right to request and review any background history on an individual(s) entering the home.

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Regardless if the landlord utilizes their own maintenance people or outside contractors it is critical these individuals have been vetted prior to entry.”

An incident in St. Louis, Missouri highlights the potential threat to a tenant.

From www.StLouisToday.com (Mar. 06, 15):

 A woman who was sexually assaulted by a cable repairman is suing her attacker and three companies, claiming the crime could have been prevented if they had done better background checks. (1)

Tenant background checks are commonly conducted on all perspective tenants. These checks review many of the same public documents one might utilize in checking a contractor’s background.

Almeida states: “Utilizing a third-party background screening company would be critical in conducting a tenant check. Often times these same companies conduct contractor background checks but it is important the background check is thorough.”

Just as a landlord would want a tenant check to cover all possible aspects of a perspective tenant, utilizing criminal history, sex offender, evictions, personal references, and other related reports; a tenant would expect the same thoroughness conducted on contractors.

Almeida states: “In the St. Louis case the thoroughness of the contractor’s background check is called into question.”

From www.StLouisToday.com (Mar. 06, 15):

 “…none of the companies checked … previous employers or personal references before hiring him, and the limited criminal background check that was performed was inadequate …” (2)

In Franklin, NY a woman claims theft by a contractor.

From www.7OnLine.com (Apr. 27, 15):

 “One woman had thousands in jewelry stolen from her home while workers were there, and when she learned about the employee’s criminal history, she was shocked.”

“… has a rap sheet that goes back a decade and includes theft, drugs and resisting arrest. Servpro’s owner admitted he did a background check and decided to hire … anyway.” (3)

Ultimately a thorough background check can greatly assist in making a decision as to who one might allow entry to a rental or owned property.

Almeida states: “The issue of contractor malfeasance is one not commonly discussed, but it is critical that landlords and property managers, as well as home owners understand who they let past the front door. Tenant checks protect the landlord/property manager and contractor background checks protect the tenant and property owner.”

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. For more information on Contractor Background Checks contact CriminalBackgroundRecords.com.

Notes:

1.  stltoday.com/news/local/crime-and-courts/cable-repairman-s-past-should-have-been-caught-in-background/article_045909f3-6488-50a9-9770-165d53390dc7.html
2. stltoday.com/news/local/crime-and-courts/cable-repairman-s-past-should-have-been-caught-in-background/article_045909f3-6488-50a9-9770-165d53390dc7.html
3. 7online.com/society/7-on-your-side-customer-says-contractor-stole-her-jewelry/684110/

Tenant screening is a complex task conducted by landlords and/or property managers as a part of the new tenant vetting process. A tenant check is a collection of data that allows a landlord or property manager to make a well-informed decision. There are a number of public records utilized as a part of this process as well as a variety of reference checks and verifications.

Wikipedia describes tenant screening as follows:

Tenant screening is a process used primarily by residential landlords and property managers to evaluate prospective tenants. The purpose is to assess the likelihood the tenant will fulfill the terms of the lease or rental agreement and will also take great care of the rental property in question. The process culminates in a decision as to whether to approve the applicant, approve the applicant conditionally (such as requiring an increased deposit or cosigner) or deny tenancy. (1)

Reports commonly used are:

1. Consumer Credit Report – Used to verify financial wherewithal.
2. Evictions – Used to verify an applicant’s rental history.
3. Criminal History/Sexual Offender Registry – Used to verify an applicant’s legal history.

Verifications commonly used are:

1. Rental History Verification – Past landlords and/or property manager’s reference.
2. Personal – Friends, Family, and/or work colleagues contact as character reference.

Ultimately, tenant screening has a variety of laws and regulations that control the fair, legal, and lawful use of public records in the context of a tenant background check. The Department of Housing and Urban Development (HUD) retains a responsibility to regulating tenant screening as does the Fair Credit Reporting Act.

However, it is important to note that recent changes with the use of Criminal History Records as a part of pre-employment screening may eventually affect the use of Criminal History Records as part of tenant screening.

Recently, the Equal Employment Opportunity Commission released guidance as to the fair and legal use of criminal histories as part of pre-employment. Also, ban-the-box legislation across the country has changed when and where the question of a criminal past can be asked as part of the application process. In a very general sense, the legal and lawful use of criminal records has changed.

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Tenant screening, on the surface, is remarkably simple, but the changes in the legal and lawful use of criminal history will eventually affect tenant screening and create a more complex legal environment. Just as the laws governing employment background screening have changed, laws governing tenant screening or those specific to tenant screening will change.”

Over 16 states and numerous cities have enacted legislation specific to the use of criminal histories with employment screening. These laws are generally similar but not uniform and, to date, there is no federal law creating a uniformed mandate. Subsequently the legal climate over the use of criminal histories remains challenging.

Almeida states: “As the laws governing the use of criminal history records, and public records in general, evolve it should eventually become uniform. This holds true for tenant screening. Subsequently it becomes incredibly important to utilize a third-party tenant screening company to maintain compliancy with local, state, and any federal law governing the use of public records.”

TenantScreeningUSA.com is a third party tenant screening company serving the small to mid-size rental community. With a highly trained and dedicated staff, TenantScreeningUSA.com can create a low-cost and fully compliant tenant screening package to fit ones needs.

Notes:

(1) en.wikipedia.org/wiki/Tenant_screening

The conversion from primary property to rental property continues to expand in the single-family housing market. As more and more homeowners become landlords there are three “P’s” commonly referred to in order to have a successful investment: Property, People, and Perception. One must have an enticing property in order to attract potential long-term tenants (people) and, subsequently, maintain a positive perception of the property to ensure success.

But there are three additional concepts that lead to a successful and profitable rental arrangement: Persistence, Patience, and Payoff.

1. Persistence. Finding that perfect single-family dwelling can be challenging. Landlords search for well-maintained properties in prime locations that can be easily converted onto the rental market. Even if one is converting an existing property to a rental, there is a high degree of persistence in getting the property into an attractive and desirable rental property.

Another form of persistence is in finding tenants that can provide financial surety to a landlord or property manager’s investment. Subsequently, one of the most important steps in the persistent search for a long-term, financially secure tenant is a thorough tenant background check which should include credit check, criminal history and sexual registry reports, evictions, and personal references.

2. Patience.

“The investment opportunity that single-family rentals offer today is more attractive to investors with patient money – those who have an investment horizon of more than three-to-five years and are focused on making their return on monthly rental income rather than property appreciation…” (1)

Patience can involve the near and long-term. When investing in property one must be prepared to wait for the investment to payoff. But patience involves more than the wait for payoff but the wait for the perfect tenant. Landlords and property managers often feel the pressure to keep units filled and earning income, but a single-family dwelling landlord might wait a little longer as there may be more at stake, certainly if it is only a single property in a portfolio.

3. Payoff. Individuals renting out a single-family dwelling can certainly achieve a stable income. By being persistent in creating a clean and desirable home as well as pursuing potential successful tenants, and utilizing patience in the pursuit of those tenants, a landlord can get to the payoff.

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Renting out a single-family dwelling can be extraordinarily different but there is certainly a payoff assuming one takes the right steps. One step that should never be skipped or shortchanged is a tenant check.”

10News.com (Mar. 02, 15) highlights some of the key elements included in tenant screening:

You don’t want just anyone renting from you. It’s important to take the time to create an application with the basics like full name, employer, salary, any previous rentals and landlords in addition to references. You will also need prospective tenants’ Social Security numbers to conduct a background check and get their authorization to run a credit check. (2)

A tenant check remains an integral part in vetting a potential long-term tenant.

• Persistence in conducting thorough tenant checks
• Patience in not jumping at the first tenant to pass through tenant screening
• Payoff in selecting the most fiscally able individual(s) or family based on interviews and data pulled from a tenant check.

TenantScreeningUSA.com is a third-party tenant screening company that works with landlords and property managers in creating low-cost, thorough tenant screening packages. Persistence and patience are key but the payoff is in having the right information for the right cost in the right amount of time.

Notes:

(1) nreionline.com/single-family-housing/patient-money-enters-single-family-rental-market

(2) 10news.com/financial-fitness/6-tips-for-renting-out-your-home

Income suites are an emerging trend in Canada that could find a greater foothold in the United States. Essentially separate living spaces within a single-family dwelling, an income suite could have a financial benefit to the home owner, especially within a continuing transitory American populace.

But what exactly is an income suite?

From theChronicleHerald.ca (Feb. 02, 15)

The concept is simple enough — turn an area of your home into a legal, self-contained apartment then collect rent each month to off-set the costs of owning and maintaining the property. (1)

With housing costs beginning a slow upward climb the idea of additional income is certainly a welcome one. Recently, in the United States, home owners have been trading up to newer, larger properties without selling the original home. These homes are turned into rentals, as a means of creating additional income. Income suites could be the next evolution as the opportunity to turn existing homes into rentals becomes prohibitive. However there are certain rules one must abide by in order to have a legal and lawful income suite.

From www.RevNYou.com (No Date Provided):

A legal suite is when you add a rental unit to a property following the building codes of the city you’re in and doing everything from electrical to plumbing to framing with a permit. As each step in the process gets complete an inspection will be completed to make sure that it all meets the building codes for your area. An illegal suite is when you put in the rental unit without permits. (2)

In a recent article on homes.com greater detail was provided in regards to the requirements of an income home. An interesting comment is:

There must be enough space to build a kitchen, bathroom, storage, living room, and bedroom. The living room and bedroom can be one large room if space is limited; this will be a studio-style income suite. An ideal income suite would have a laundry room as well. (3)

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “An income suite is really no different than renting out a single-family dwelling or an apartment over the garage. And it is important for the owner of that unit to conduct a full and thorough tenant check. After all an income suite is in close proximity of the owner and owner’s family.”

Tenant background checks consist of public records drawn either from county courthouses or databases. The most common tenant screening documents are:

• Consumer Credit Report – Offers information on the fiscal stability of a potential tenant
• Evictions – Offers information on an applicant’s past as related to rental stability
• Criminal History – Drawn from county courthouses, this is the most current and accurate information available
• Sexual Predator Registry – Provides information on convicted predators and sex criminals

A best practice offered to landlords and property managers of large rental communities remains the same for those seeking to rent an income suite: Work with a third-party tenant screening company.

A third-party tenant screening company is tasked with staying current on laws and legislation governing the rental screening industry and can provide a landlord with the information required to make a sound decision.

TenantScreeningUSA.com is a third-party tenant screening company that can provide the information landlords and property managers require to make decisions over potential renters. Specializing in working with smaller properties, TenantScreeningUSA.com can provide low-cost and highly effective programs from income suite property owners.

Notes:

(1) thechronicleherald.ca/homesnews/1266863-having-a-rental-unit-in-your-home

(2) revnyou.com/adding-a-suite-to-a-house/

(3) blog.homes.com/2013/06/add-an-income-suite-to-your-home-and-gain-revenue/

In 2015 a higher number of multi-family rental properties will hit the market and rents will increase slightly slower than previous years.  In general, good news for rental property owners.  But with an ever changing rental environment the need for solid, long-term renters will remain an absolute and landlords need to thoroughly screen perspective tenants in order to secure those long-term residents.

According to recent reports the rental market will continue to grow in 2015.

From a recent report on CPExecutive.com discussing market trends in the rental market:

Rent growth at multi-family properties across the United States in 2015 is expected to increase 4.5 percent for Class A and B+ assets and 5.1 percent for Class B and C assets, with some technology-heavy Western markets seeing spikes as high as 9 percent.  (1)

New building of multi-family properties began during the tail-end of 2014.

From Forbes.com (Nov 19, 14):

… the numbers show that builders are placing their energy in multi-family housing. While permits issued for single-family homes rose by just 1.4% (to a seasonally adjusted annual rate of 640,000) in October, permitting for buildings with five or more units jumped 8% above September’s level (to 406,000 in October).  (2)

An additional impact on the rental market includes a return to long-term investing of housing purchases.  In previous years much of the investment was based on short-term flipping strategies.  In 2015 this is predicted to change to a longer view and investment in housing and, subsequently, renters.

From USANews.com (Jan 01, 15):

Auction.com, the largest online real estate marketplace, recently released survey data collected from investors bidding on properties across the country, which confirmed that buying property to hold and rent is currently favored over flipping nationwide.  (3)

Ultimately the goal of any proper landlord and/or property manager is to gain and maintain as many long-term renters as possible.  Long-term renters provide predictable income and a solid reputation for a property (a critical component in attracting long-term renters).

Profit is an obvious objective of a rental property.  As rents increase it may appear even more obvious, especially in areas where availability is tight and competition for rental units occurs.  Yet environments such as these demand the same scrutiny of potential renters as a flat or retreating market.  In a decreasing rental market, properties can remain empty or require incentives for new tenants.  In an increasing rental market, properties can churn if renters are not thoroughly vetted and fail to maintain the demands of a rental agreement, or suddenly move due to more favorable rental conditions.

Landlords and property managers must thoroughly vet potential renters regardless of rental market movement.

Adam Almeida, President and CEO of TenantScreeningUSA.com states:  “Landlords thorough tenant background checks, regardless of market, will continue to find success in obtaining long term renters.  After all the demands of the investment require long-term renters that provide a predictable income.  This fact remains true in both a long and short market.”

Tenant screening offers landlords and property managers the information required in order to make a well informed decision about a potential tenant.  Tenant screening provides information on:

1. The ability to financially fulfill a rental agreement through the review of consumer credit reports.
2. The ability to maintain a safe living environment through the review of criminal histories and sex offender registries.
3. The ability to maintain a solid reputation of property through the review of eviction reports.

Almeida states:  “Reviewing information commonly found in tenant screening reports will help a landlord or property manager make an informed decision about potential tenants and, subsequently, acquire long-term tenants, regardless of market conditions.”

TenantScreeningUSA.com is a third-party tenant screening company with an experienced staff highly trained in all aspects of tenant screening, including laws and regulations governing the use of public records.  With programs designed specifically for first-time and/or small unit landlords and property managers, TenantScreeningUSA.com can provide all the tenant screening tools required for a successful and enjoyable experience.

Notes:

(1)          http://www.cpexecutive.com/property-types/multi-family/pierce-eislen-rent-growth-for-m-f-properties-predicted-in-2015/1004109959.html

(2)          http://www.forbes.com/sites/erincarlyle/2014/11/19/housing-starts-fall-2-8-as-builders-plan-for-more-multi-family-down-the-road/

(3)          http://money.usnews.com/money/blogs/the-smarter-mutual-fund-investor/2015/01/01/flip-or-hold-best-real-estate-moves-for-2015

As the year 2014 begins to fade into its final weeks and days, moments of reflection arise. In particular, tenant screening; the why and the what.

Tenant screening, also known as tenant checks, is the process of vetting potential tenants for residential rental properties. These properties can be single unit dwellings or a unit within a larger, more complex residential community.

BusinessDictionary.com defines a residential rental property as:

… a property from which the owner receives payment from the occupant(s), known as tenants, in return for occupying or using the property. Rental properties may be either residential or commercial. The owner of rental property may be allowed to take certain tax deductions such as mortgage interest and depreciation. (1)

Landlords and property managers are charged with the vetting process of a new tenant and, commonly, tenant screening plays a central role in this process. The primary purpose of tenant screening is to protect the financial investment of the owner and protecting existing tenants.

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Conducting a tenant check is the single most important activity a landlord or property manager can engage. Information gathered from a tenant check can provide the data a landlord or property manager requires in making a decision about a perspective tenant.”

Tenant background checks draw upon public records also known as consumer reports.

Typical reports used are:

1. Credit reports – used for determining financial solvency

2. Evictions – used to determine reliability and responsibility in a rental relationship

3. Sex Offender – used to determine potential safety for existing tenants

4. Criminal history – used to determine potential safety of existing tenants

The Federal Trade Commission is tasked with ensuring the legal and lawful use of consumer reports:

From the FTC (www.business.ftc.gov)

If you’re a landlord, you may use consumer reports to evaluate rental applications – as long as you follow the provisions of the Fair Credit Reporting Act (FCRA). The FCRA is designed to protect the privacy of consumer report information and to guarantee that the information supplied by consumer reporting agencies (CRAs) is as accurate as possible. The FCRA requires landlords who deny a lease based on information in the applicant’s consumer report to provide the applicant with an “adverse action notice.” (2)

Almeida states: “It is important to note that the use of consumer reports is a complicated task and one that should be fulfilled by third-party tenant screening companies, those that can ensure compliancy for landlords and property managers.”

Third-party tenant screening companies can be a significant benefit to the landlord and property manager. Governed by the Fair Credit Reporting Act or FCRA, third-party screeners must maintain current knowledge of all laws and requirements governing tenant screening.

In review:

Why – To protect financial investment and existing tenants

What – Tenant checks are the gathering of public information, or consumer reports

Who – Third-party tenant screening companies trained in the lawful and legal use and distribution of consumer reports specific to tenant checks

TenantScreeningUSA.com is a third-party tenant screening company with highly trained and skilled operators working within the rules and regulations of tenant screening as defined by the FCRA. With the ability to access information from databases and county courthouses, TenantScreeningUSA.com can provide the information required for landlords and tenants of properties large and small.

Notes:

(1) http://www.businessdictionary.com/definition/rental-property.html#ixzz3Ktd5ALOL

(2) http://www.business.ftc.gov/documents/bus49-using-consumer-reports-what-landlords-need-know

Bad tenants may be unavoidable. Of course, if a bad tenant can be avoided it behooves a landlord to take every step possible to do so.

From The Globe and Mail (Sep. 03, 13):

Selecting a disreputable tenant who causes major damage to a unit can leave a landlord with a significant bill for clean-up and repairs, scare off other regularly paying tenants, and even label the landlord as inattentive or with the classic slumlord designation. (1)

But the landlord/tenant relationship is a challenge in and of itself. Many landlords and property managers will suggest that the relationship between tenant and landlord is so fraught with tension that “bad tenants,” real or otherwise, will always exist.

From the Huffington Post (Nov. 06, 14):

Disagreements abound over every aspect of the rental process, from payments to repairs, leases to drop-ins. On What Does the Internet Think, a site that uses linguistic analysis to determine how positively something is viewed online, landlords have a negativity rating of 98.9 percent — higher than headaches (95 percent), taxes (79 percent) and even adultery (just 51 percent!). (2)

With so much negativity going around the perception a tenant receives from a landlord or property manager could differ greatly from the reality.

Communication is a critical component in the tenant/landlord relationship

From the Huffington Post (Nov. 06, 14):

… anxiety and conflict between landlords and tenants can be avoided when both parties lay out their expectations explicitly at the beginning of the relationship…(3)

As the application process commences a landlord/property manager should communicate with potential candidates each step of the process and what should be expected. The key to trying to avoid a bad tenant is thorough communication.

There are multiple steps to screening a tenant and attempting to avoid a bad one.

1. Completing a full application, preferably through an on-line secure platform such as TenantScreeningUSA.com. The depth and thoroughness of an application is generally up to a landlord but should request enough information to make a fully informed decision about an applicant.

2. Conduct a face-to-face interview with applicants and include all potential adult residents.

3. Complete a thorough tenant background check and include consumer credit report, evictions, and criminal histories.

4. Personal references.

From www.LegalZoom.com:

Keep in mind that the best references in this situation are not personal friends and/or roommates but previous landlords—even better if it’s not the current landlord, who could be so ready to get rid of that tenant that he or she might not paint a true picture. Past and present employers can also make for reliable references depending on the type of work the potential tenant does and the length of employment. (4)

Asking questions throughout the process is important as well. If information comes across as incomplete or unbelievable probe further until a satisfactory response is achieved. If one cannot be found it may be best to end the relationship and look for a different tenant.

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Communication combined with a thorough vetting process, including a tenant check, will greatly assist landlords and property managers in avoiding bad tenants. Are bad tenants 100% avoidable? Probably not, but if one takes all the steps in a thorough vetting process the risk is greatly reduced.

TenantScreeningUSA.com is a third-party tenant screening company that can assist landlords and property managers in creating a thorough and complete tenant screening process. Utilizing unique screening tools and accessing multiple background reports, TenantScreeningUSA.com can potentially assist in avoiding bad tenants.

Notes:

(1) http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/how-to-steer-clear-of-bad-tenants/article12468447/?page=2

(2) http://www.huffingtonpost.com/max-nussenbaum/how-to-fix-the-landlord-tenant-relationship_b_6107732.html?utm_hp_ref=huffpost-home&ir=HuffPost+Home

(3) ibid

(4) https://www.legalzoom.com/articles/how-to-protect-yourself-from-bad-tenants

Small unit or property landlords should conduct tenant background checks for the same reasons larger properties conduct them: Risk mitigation.

Individuals seeking to take advantage know that small property landlords or property managers are less likely to conduct tenant checks.

From www.NWITimes.com (Oct. 04, 14):

A survey on landlord practices conducted by independent research firm Liminality, Inc., on behalf of Real Property Management, found 21 percent of do-it-yourself landlords sometimes or never conducted background checks on their prospective tenants. Only 44 percent conducted sex-offender checks.

…says DIY landlords don’t have the time or resources to screen tenants, which can lead to property damage, legal fees and more. http://www.nwitimes.com/lifestyles/home-and-garden/why-sell-when-you-can-keep-rental-properties-create-revenue/article_4879d6b3-a01b-54c0-9a81-1994207b6db9.html

A tenant check provides a landlord with the information they require in order to make an informed decision about a potential renter. But there are some common misconceptions.

From www.theWashingtonPost.com (Sep. 29, 14)

Small-scale landlords are less likely to run a background check or check for evictions and other legal issues, and may not even run a credit check… http://www.washingtonpost.com/express/wp/2014/09/19/no-pay-stub-not-so-great-credit-some-issues-can-make-renting-tricky-but-not-impossible/

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Landlords of any size have access to the same data point’s larger properties access, including consumer credit checks and evictions.”

Risk mitigation for small unit landlords is all about person and property.

Almeida states: “The biggest asset any landlord has is a long-term tenant. This is especially true for small unit landlords.”

Creating an environment conducive to long-term tenants can be a challenge. First, a landlord must create an attractive property. Maintaining a property – one that is both attractive and safe – is important to long-term tenants. Fixing small things and keeping an apartment fresh in appearance will go a long way.

However, a tenant check remains a critical tool.

From www.news.com.au (Sep. 23, 14):

“Speak with previous landlords or property managers and ask specifically whether they had any issues with the tenant in the past…” http://www.news.com.au/finance/real-estate/bad-tenants-dont-only-cause-headaches-they-can-cost-property-owners-thousands/story-fncq3era-1227067587241

Almeida adds: “Checking a potential tenants past is so important. The information gathered can greatly assist landlords make critical decisions.”

Key elements of a tenant check include:

1.  Consumer credit report – measure a potential tenant’s ability to fulfill financial obligation.
2. Unlawful detainers – will show a tenant eviction history.
3. Criminal history – will provide criminal history on a county level and is the most current form of public record.
4.  Sex offender registry – will show any convictions as well as the level of any offense.

There are additional reasons small property landlords should work with third-party tenant screening companies.

Almeida adds: “The laws governing the tenant screening industry are rapidly changing. Laws and regulations governing the use of public records continue to evolve. Third party background tenant screening companies are tasked in staying current with all these rules. Small property landlords that utilize third party tenant screeners will have access to that knowledge.”

Working with a third-party tenant screening company could assist a landlord in avoiding the cost of breaking a law.

In the end it is hugely beneficial for small property landlords to work with a third-party tenant screening company. They will offer the information required to make an informed decision as well as provide the information to stay compliant with laws and regulations governing the tenant screening industry.

TenantScreeningUSA.com is a third-party tenant screening company specializing in the needs and requirements of small unit landlords and property managers. With skilled and high trained operators available for consultation, TenantScreeningUSA.com is ready to assist in mitigating risk and helping landlords make difficult decisions.

Being a landlord for a small property is not a simple task.  Small property landlords take on all the assignments larger properties can meter out to different people.  Essentially, a small property landlord is a one man marching band, that is, responsible for every task.

However, the goal of any landlord or property manager, regardless the size of the property or how many rental units are available is the same:  Long-term tenants.

A long-term tenant provides a degree of financial predictability but provides a great deal more when one considers a bigger picture.  Long-term tenants are the result of hard work, dedication, and understanding the three P’s of Rental Properties:  People, Place, and Perception.

People – The people that reside in a property will make or break that property.  One bad tenant can disrupt a harmonious tenant-landlord relationship and drive away potential or existing long-term renters.  It is incumbent on the landlord to create this harmonious relationship through the vetting process.  Conducting a complete and thorough tenant vetting process, one that includes an application, face-to-face meeting/tour, and a tenant check is integral.

Tenant background checks are the central component in the vetting process.  Tenant checks have two distinct features:

1.    Tenant checks draw information and data from public records, such as consumer credit reports, unlawful detainers, and related.
2.    Reference checks verify a tenants past, specifically with previous landlords and property managers, as well as employment.

Once individuals, roommates, or families have taken residence it is critical for the landlord or property manager to maintain a given property.

Place – A critical eye of the property will help a landlord.  Maintaining the appearance of the property with regular maintenance and quick repair as required can assist in gaining a long-term renter.  Further, ensuring there are no hazards such as exposed wiring or trip/fall hazards can decrease risk and liability.

InsuranceNet.com states the obvious but comments well worth repeating.

From InsuranceNet.com:  (Aug. 08, 14)

That includes changing the locks so the tenant isn’t liable for any keys that may be floating around, and making sure that the unit(s) has a fire extinguisher and working smoke alarms. (1)

Keeping a property well-maintained greatly assists in developing and enhancing a relationship with a tenant.  Fulfilling a promise goes a long way.

The third P in the triad is more difficult to define.

Perception – How other potential renters view a property as a whole could make or break the investment.  If a property has a poor perception due to frequent police visits, poor maintenance and landscaping, and an overall lack of care, landlords will be hard pressed to gain long-term residents.  Standards on tenants may drop or decrease as a unit sits empty.  The profitability on a poorly perceived property can decrease significantly

Adam Almeida, President and CEO of TenantScreeningUSA.com states:  “A well-perceived property becomes highly sought.  With well vetted tenants in place combined with a highly maintained property, perception can be relatively easy; however there are additional pieces that lead to a positive perception.”

Properties should be well lit and secure.  Either through a gated-community and/or patrolled property tenants should feel safe within their rental property.  Frequent police patrols can assist in decreasing the potential of crime and, subsequently, enhance the perception of a property.

Almeida adds:  “Once a property gains a positive perception within the rental community, combined with great existing tenants and a well-maintained property, long-term tenants become an easier proposition.”

TenantScreeningUSA.com is a third-party tenant screening company that can greatly assist landlords and/or property managers in vetting potential tenants.  TenantScreeningUSA.com has the access to information landlords of properties large and small demand.  Utilizing third-party tenant screening is a best practice for any rental property.

Notes:
(1)    http://insurancenewsnet.com/oarticle/2014/08/08/turning-a-profit-a-541821.html#.VAyibMJdV1Y