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:
- Consumer Credit Report – Used to verify financial wherewithal.
- Evictions – Used to verify an applicant’s rental history.
- Criminal History/Sexual Offender Registry – Used to verify an applicant’s legal history.
Verifications commonly used are:
- Rental History Verification – Past landlords and/or property manager’s reference.
- 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
