Evictions Reports: Integral to the Tenant Screening Process

The tenant screening process can be challenging, especially for individuals new to the process. In a time when more and more people are becoming first time landlords by renting rather than selling a home before moving to a new home, lack of knowledge can be critical and costly mistakes may occur.

There are a number of steps landlords and property managers take in the vetting of new tenants:

1. Application – A complete and thorough application is only the first step. The information gathered on a rental application is used by the landlord to conduct a tenant check.

2. Interview and Property Tour – One of the most informative steps a landlord can take, especially a new landlord, is a property tour. During the course of a property tour the potential tenant essentially goes through a walking interview. Listening to a tenant’s responses can greatly inform the landlord.

3. Tenant Check – A tenant check consists of public records as well as verifications. Information gathered during a tenant check will greatly inform a landlord’s decision.

The tenant check can consist of the following:

a. Consumer Credit Report – Credit reports are drawn to show fiduciary capability or, in other words, a tenant’s ability to fulfill the monetary requirements of a lease or rental agreement

b. Criminal History – This report is often the most current and accurate public record. Drawn from the county courthouse, a criminal history report will detail convictions of a candidate during a specific period of time.

c. Verifications – There are several forms of verification that can be provided but most important may be personal references, specifically previous landlord.

d. Evictions or Unlawful Detainer – This report is, perhaps, the most telling document a landlord can use as it greatly informs a potential tenant’s rental history. It is integral to the tenant screening process for obvious reasons.

What is eviction or unlawful detainer?

Eviction is generically defined as:

eviction n. a generic word for the act of expelling (kicking out) someone from real property either by legal action (suit for unlawful detainer), a claim of superior (actual) title to the property, or actions which prevent the tenant from continuing in possession (constructive eviction). Most frequently eviction consists of ousting a tenant who has breached the terms of a lease or rental agreement by not paying rent, or a tenant who has stayed (held over) after the term of the lease has expired or only had a month-to-month tenancy. http://legal-dictionary.thefreedictionary.com/eviction

New landlords should also be aware of the term “unlawful detainer,” which is more commonly used when removing a tenant from a property as part of a legal action.

Unlawful Detainer

The act of retaining possession of property without legal right.

The term unlawful detainer ordinarily refers to the conduct of a tenant who is in possession of an apartment or leased property and refuses to leave the premises upon the expiration or termination of the lease. Typically, the landlord wishes to evict the tenant for not paying the rent or for endangering the safety of the other tenants or the landlord’s property. http://legal-dictionary.thefreedictionary.com/unlawful%20detainer

While eviction and unlawful detainer appear to be synonyms they are not. Eviction is a generic definition and unlawful detainer is a specific legal term and definition.

Eviction records start out as court records and are eventually held in frequently updated databases.

Moreover, it is critical for landlords, especially new landlords understand that eviction requirements are stringent, in order to protect tenants, and may differ from state-to-state.

For example, in the state of California a “landlord may be able to evict a tenant if the tenant:

• Fails to pay the rent on time;

• Breaks the lease or rental agreement and will not fix the problem (like keeping when pets are not allowed);

• Damages the property bringing down the value (commits “waste”);

• Becomes a serious nuisance by disturbing other tenants and neighbors even after being asked to stop; or

• Uses the property to do something illegal.

In most cities, the landlord can also evict the tenant:

• If he tenant stays after the lease is up, or

• If the landlord cancels the rental agreement by giving proper notice.” http://www.courts.ca.gov/selfhelp-eviction.htm

The best practice any landlord can make is to work with a third-party tenant screening company. Ultimately a third-party will be able to provide all the public records and references a landlord might require. Further, they can provide insight and understanding to key reports such as eviction documents.

TenantScreeningUSA.com is a third-party tenant screening company that can provide a wide-variety of reports and documents critical in the decision making process for landlords, new and existing. To get started go to www.tenantscreeningusa.com.

 

Going Back to College: How a Small Unit/Single-Dwelling Landlord Can Happily Rent to a Freshman

Every year toward the middle of summer fresh high school graduates across the country turn their attention to leaving home and attending college. Some will move thousands of miles and others will stay close to home, but a large percentage of these new college students will be living on their own in a rented property for the first time.

Many large colleges and universities can provide on-campus housing, often pairing up two or more students in dorms. Additionally, housing can be provided in a rental type situation whereas the student can pick those that may share the apartment.

But demand often outweighs supply and that creates a situation of almost near desperation for the student and their families.

It can create a crisis of time management for small property or single-unit landlords as well. In order to fill properties the temptation to cut corners may exist. But it is important to remain vigilant and conduct a thorough vetting process of a college student just as one might with a long-term renter. And a tenant check is central to the vetting process.

A tenant check helps a landlord in three main areas:

1. Protecting the property. Tenant screening can provide information on a potential tenant or tenants by reviewing information retrieved from public records or through verification of personal recommendations, previous residence, and related.

2. Protecting the community. While smaller landlords may not have much of a community to protect, it is important to ensure the safety and security of existing tenants, or, in terms of renting a room or apartment attached to a garage, the family.

3. Protecting the investment. Running credit information on an incoming freshman may not make sense, but savvy landlords know running a credit check on guarantors such as parents or other relatives makes perfect sense. Often rentals are not even in the student’s name. Running a credit check on the individual or individuals that pay the rent is a best practice.

A tenant background check of college-aged renters also assists the community at large. Conducting a national sex offender registry check should be a part of a tenant check. While the incoming freshman may be free of any sexual malfeasance, older students may have a troubled past. It is incumbent on any landlord to protect the greater community.

Moreover, a tenant check conducted on a college-aged student must be as thorough as a tenant check conducted on more traditional, long-term renters. Treating a potentially short-term rental equal to a longer-term rental makes sense, and will provide surety in the relationship between landlord and tenant.

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Protecting people and property is at the core of tenant screening and owners of small unit apartment complexes or a family renting out a room or garage apartment should remain diligent.”

Working with a third-party tenant screening company such as TenantScreeningUSA.com would be the smartest step a small unit/single-family dwelling landlord could take. Not only can a third-party gather all the public documents required, such as evictions, sex offender registry, criminal history, and credit reports; a third-party can review all personal recommendations.

Almeida states: “Sometimes the most important piece of information a young college student can provide is a personal reference. Verification would be vital.”

In the end, the key to happy renter/landlord relationship is a tenant check. Allowing a landlord to make a well-informed decision based on public records, personal references, and tenant screening, will help create a harmonious relation with a tenant.

TenantScreeningUSA.com provides full service background screening to landlords and property managers of any size. Whether it is a long-term permanent rental, or a relatively short-term student rental, TenantScreeningUSA.com offers complete tenant background check solutions. For more information contact www.TenantScreeningUSA.com today.

 

TenantScreeningUSA.com Joins TransUnion in Celebrating the One Millionth User of SmartMove Platform: What is SmartMove?

Recently TransUnion celebrated the one millionth user of the SmartMove platform. TenantScreeningUSA.com, as a leading supplier of the SmartMove tenant screening portal, joins in the celebration.

But what is SmartMove?

Simply put SmartMove is the easiest, simplest, most secure Internet based tenant screening platform that provides the information a landlord needs with the security a potential tenant demands.

In a time of increasing identity theft consumers need a secure way of sharing information that will not put them at jeopardy. Recent data breaches from a broad range of companies, organizations, and government entities, have exposed the potential threat to data. From Facebook to Target, from Maricopa County Community College District to Administrative Office of the Courts of Washington State, data has been hacked and exposed. http://www.networkworld.com/article/2286787/4g/135100-The-worst-data-breach-incidents-of-2013.html

One area of concern that may be overlooked is in the transaction of a rental application. Tenants may be exposed to potential information theft as handwritten, paper applications are still a primary source of data transmission. Considering that the key pieces of information required for identity theft are on a rental application, removing that risk by moving the information transmission to a safe, secure Internet portal makes sense.

Enter SmartMove.

SmartMove keeps private information private. Information such as Social Security Number, date of birth and bank account numbers remain secure. The key is in working through the online SmartMove system via TransUnion – a leading and trusted supplier of consumer data – which never reveals specific personal data to a potential landlord or property manager.

Other benefits for a renter include:

  • Fast application processing – Consent for tenant check is provided on-line and, subsequently, the check is conducted in a blink of an eye and the landlord can make a quick decision.
  • Credit protection – A credit score will not be negatively impacted due to a “search” of a credit report.
  • Online – No paper applications or files that can get lost, stolen, or inappropriately “found.”

As provided by TenantScreeningUSA.com, the SmartMove benefits for a landlord are just as compelling.

Landlords and property managers need information fast and in a complete and comprehensive format. SmartMove can provide access for landlords of small to mid-size properties with the same information utilized by the big boys. Not only is SmartMove safe and secure, it is fast. And often times the speed of information is the most important factor for a landlord.

Consider the ideal candidate standing in the office, check in hand, waiting approval for a property that has been vacant and NOT making money. The landlord doesn’t want that individual to leave and potentially discover a different property. Speed is of the essence!

SmartMove provides a comprehensive report on a potential renter in a matter of minutes, not hours. Reporting information is comprehensive and provides full access to consumer credit and criminal history reports. SmartMove can provide a rental/leasing recommendation, including a single recommendation for joint renters and co-signers.

And, perhaps as important as speed, is cost. SmartMove from TenantScreeningUSA.com has flexible payment terms with no set-up cost nor monthly minimums. Further, SmartMove can be set up to accept payment from the landlord or the renter.

Ultimately, SmartMove is a safe, secure, and cost-effective way to conduct a tenant background check. TenantScreeningUSA.com in partnership with TransUnion can set up landlords and renters in a matter of minutes.

TenantScreeningUSA.com is a nationally recognized tenant screening company with a skilled and knowledgeable staff available to assist landlords and property managers with their tenant screening needs.

 

Summer Rental Landlords Must Conduct a Tenant Check on Short Term Renters

The signs of summer’s approach are all around and plans for summer vacation are underway. Many families will take time to travel to far off destinations but a great many will stay closer to home. Perhaps they will stay at a hotel or they might rent a home or similar property for a summer adventure.

Renting a vacation property is the same as renting a long-term residence. A potential applicant searches for a property, makes a query, goes through the vetting process with the landlord, comes to a financial agreement, and moves in for a specific amount of time.

The options for properties are broad and the types and variety of properties continues to grow. In the past few years individuals took advantage of the recent economic downturn and purchased a new home, but instead of selling old for new, they became a landlord.

Recently the Los Angeles Times printed a lengthy article about becoming a first-time landlord.

From the Los Angeles Times (APR. 24, 14):

The real estate market has long worked on a simple system: If you want to buy a new house, sell the old one and use the equity for a down payment.

But the last few years of low ownership costs and rising rents have some move-up buyers trying a new approach: Buy the new house. Keep the old one. And rent it out. http://articles.latimes.com/2014/apr/05/business/la-fi-first-time-landlords-20140405

The temptation to be a landlord is great. Currently, the value of a monthly rent exceeds the cost of a monthly mortgage. Subsequently, the opportunity to gain additional income for renting an existing property is very real, but there are risks involved in becoming a landlord, especially with a vacation property.

Landlords and property managers of long-term residential rental properties know that the key to a successful relationship with a tenant begins with the vetting or application process. A landlord will conduct an interview, gather an application, and conduct a tenant background check.

The same process should hold true for a landlord renting out a short-term vacation property.

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “There is no difference in renting a long-term residential occupancy to a short-term, other than duration. A landlord must conduct a tenant check in all rental situations.”

Some might question a tenant check for a single week of renting as the property rental is generally secured through a credit card deposit, but with any rental situation, long or short, comes the potential for risk, and risk mitigation is at the core of tenant screening.

Tenant Background Checks not only confirm the financial veracity of a tenant, but can be used to check criminal and sex offender histories. A thorough check of public records greatly assists in protecting property as well as neighbors and other local residents. Lack of tenant screening and subsequent bad tenants may lead to a bad reputation of a given property and, subsequently, a lower income from a less desirable property.

“The three key benefits of tenant screening are protecting property, people, and reputation. And every landlord and property manager, especially those first-time landlords with vacation properties, should conduct a thorough tenant check of all their applicants.”

TenantScreeningUSA.com is a third-party background screening company that provides in-depth 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 background screening reports and online tenant screening system to greatly assist any landlord or property manager properly vet prospective tenants.

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

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

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

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

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

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

 

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

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

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

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

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

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

 

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

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

Time, time, and more time.

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

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

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

Consider the following:

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

 

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

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

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

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

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

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

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

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

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

 

Protections for Tenant Screening and Applicants

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

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

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

From an FTC press release dated April 3, 2013:

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

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

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

From the FTC Press Release:

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

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

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

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

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

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

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

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

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

 

Tenant Screening: Preventative Maintenance, Proactive Policy

 

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

Ask the question: Is it worth it?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

 

 

An Accidental Landlord: Tenant Screening is Key to Success

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

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

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

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

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

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

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

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

Key components of a background check are:

1. Credit History

2. Criminal History

3. Eviction History

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

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

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

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

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

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

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

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

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

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

 

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

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

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

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

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

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

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

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

ACT 108 allows:

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

Act 143 prevents:

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

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

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

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

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

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