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by Brett Furniss
I told him I didn’t think that was a good idea; it would reject a lot of better suited applicants. He told me I was crazy (in so many words). Well, let’s do the whole Benjamin Franklin pro’s and con’s thing. Then we can make an educated decision. Does racism threat justify lease breaking? Rent it Right by Janet Portman, Inman News
They claim that they hire a screening company, that they check “every legitimate source” of information on an applicant. We know they look on the Internet — when the manager gave us the keys, he complimented us on the photos on our family Facebook page! But the guy who moved in next door must not have been screened — his blog goes back years, filled with racist rants. As members of one of the races whom he hates, we feel very uncomfortable living near him, and would like to break our lease and move. Can we do so legally? –Bill and Janelle P. Experian will now offer credit-building opportunities for responsible renters and expand its suite of products for the resident screening industry
Experian®, the global information services company, just announced that it has purchased RentBureau®, the largest and most widely used credit bureau for the multifamily industry.The acquisition provides Experian with the most comprehensive rental payment database to offer property managers and resident screeners a more accurate and complete picture of renters. It also offers renters an opportunity to build credit with continuous on-time rental payments.
(more…) Rent it Right by Janet Portman, Inman News Q: When I screen potential tenants, I talk to their current landlord and their employer, ask for references, and order a credit report. One friend told me that when he looked at the Facebook page of an applicant he was about to rent to, he saw that the person is really into partying and drinking. My friend didn’t rent to him. Should I be looking at Facebook pages, too? –David R. A: Your question calls for two answers: a legal one and a practical one. From a legal point of view, should you be checking applicants’ Internet postings? And, from a practical point of view, is it a good idea?
Without insurance, one claim could very well end your rental property management days. These days, with verdicts routinely reaching into the millions -even tens of millions, if your insurance policy has exclusions or pay-out limits you may not be as secure as you think. To limit the risk of a premise liability claim, and to keep your premiums manageable, consider this: Landlord Liable for Condition of Rental Property As a landlord, you are responsible for the safety of your tenants and their guests. This requires keeping the property in good working order. Frequently inspect walkways and staircases for wear, and repair them immediately – your top priority. One good rule of thumb: make sure all repairs are done to code. by AAOA Staff
With vacancies high, you may not get the chance to sift through a pile of qualified applicants to pick the cherry tenant. That makes it even more important to spot the ones who are more likely to cause damage or leave you with unpaid rent to collect.
While there is no sure-fire formula for predicting who will become a deadbeat tenant, hindsight from other landlords and property managers who’ve been burned can offer some great lessons.
If you see some of these traits in your applicants, you may want to dig deeper before you hand over those keys:
You should also watch for signs that this applicant is just not that into your rental:
Be leery of the applicant who is not familiar with the neighborhood and doesn’t have friends, family, a job or classes nearby, or someone who doesn’t really seem to be paying attention during the tour. These candidates may be more likely to leave you in the dust.
Never rent to an applicant before you have completed a thorough background check. Not only will that help eliminate deadbeats, but the information will come in handy if you have to go to collection.
Copyright 2010 American Apartment Owners Association See our feature, Tenant Screening Tips for Today’s Economy. American Apartment Owners Association offers discounts on products and services for landlords related to your rental housing investment, including rental forms, tenant debt collection, tenant background checks, insurance and financing.
Find out more at www.joinaaoa.org. Landlords must weigh convictions against tenant safety by Robert Griswold Q: After consulting your book, “Property Management for Dummies” and speaking with an attorney, I found a discrepancy in opinion involving tenant Your book said that I can deny a rental application submitted by a convicted criminal in order to protect my current tenants from having their items stolen. However, the attorney I spoke with said a landlord can deny an application only if it’s based on bad credit and income history, even if the applicant has a considerable criminal history and is currently on probation for stealing and drugs. Has the law changed in the past few years? A: While I’m not an attorney, some types of criminal convictions can provide very valid and legitimate grounds to turn away a prospective renter. According to your question, the attorney said you can deny an applicant based not on criminal history, but only based on bad credit or income history. But that is not necessarily always true. A convicted criminal could have good cash flow and may even have excellent credit, but that doesn’t necessarily mean they are not a threat to other tenants. Having a consistent policy for conducting criminal background checks, and for rejecting applicants for specific types of convictions, such as violent crimes and property theft or damage, can be a good policy for protecting yourself and your tenants. And you should ask your legal adviser about the types of convictions that may present good cause for rejecting an application, as this can be a tricky area for landlords who are trying to protect their other tenants and avoid violating the rights of the prospective applicant. A convicted thief, as you describe here, may not be the ideal rental candidate. Please note that arrests are very different than convictions, and someone who has had even numerous arrests may have been completely innocent of the crime or crimes alleged. An arrest is not a conviction or grounds to deny an applicant. I believe that applicants with a history of certain violent or serious criminal convictions could present a reasonable basis for the denial of a rental application, while applicants with minor convictions in the distant past could be solid rental candidates. Fair housing laws may require you to consider the type of criminal conviction and when it occurred.
But you need to be careful to not go too far, as you need to balance the rights of the applicant with a legitimate concern for the safety of your other tenants. A conviction for a non-violent crime or a minor violation of some law many years ago might not have any relevance now and would not reasonably be considered a risk to your tenants. When confronted with prospective rental applicants with criminal convictions, you are smart to seek additional information and contact your legal adviser before making a decision.
This column on issues confronting tenants and landlords is written by property manager Robert Griswold, author of “Property Management for Dummies” and “Property Management Kit for Dummies” and co-author of “Real Estate Investing for Dummies.” E-mail your questions to Rental Q&A at rgriswold.inman@retodayradio.com. Copyright 2009 Inman News See Robert Griswold’s feature, Deadbeat Tenants on the Rise?
American Apartment Owners Association offers discounts on products and services for landlords related to your real estate investment including REAL ESTATE FORMS, tenant debt collection, tenant background checks, insurance and financing. Find out more at joinaaoa.
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From “Don’t Make These Mistakes When Screening Tenants From Abroad” by Bill Gray
Screening possible new tenants who have recently come from another country can be challenging. Even those who may have been in the U.S. for some time may be a challenge — if you are not judicious enough to very carefully read what they have submitted on their application.1. Dates: When most Americans write a date, they normally put it in month/day/year order. In other countries, however, often the month and day are inverted so that dates are printed day/month/year. The American military also uses a dating system that shows day/month/year. Also be aware that the numbers themselves may look different than the way you are accustomed to seeing them. Many other countries put a hook on the bottom of a ‘9’ or a line through the middle of a ‘7.’ Since several types of screening reports are matched to birth dates, you can understand that entering the wrong date could hinder your ability to receive complete data about your applicant. I prefer a rental application that clearly asks for the day, month and year. 2. Hyphenated names and spelling: Other than possibly nicknames, most of us print or write out our name the same way every time. Not so in some other countries. Often the name is hyphenated to combine the maternal and paternal names; others may use a combination of the married and maiden name. The way the name is written is sometimes dependent upon the purpose for writing their name. Always ask for a U.S. or international driver’s license to verify the name spelling. Also make a copy for your records. If your prospect does not have a driver’s license, a visa is better than nothing. Not only are numbers often written differently, many times letters are also written differently by applicants who may have learned to write English in another country.
Make sure you go over the application with your prospective tenant so that you are very clear on the dates and how everything is spelled. If you do this, you will increase the possibility of purchasing a much more accurate tenant screening report. Copyright 2009 Bill Gray
Bill Gray is a tenant debt collection specialist, which makes him a tenant screening specialist. For tenant debt concerns or tenant screening questions, email him at Bill@thelandlorddoctor.com.
Visit Bill Gray’s blog at TheLandlordDoctor.com.
See How to Screen a Tenant Who Doesn’t Have a Social Security Number See our seven part series, Vital Tips to Increase Your Debt Collection. American Apartment Owners Association offers discounts on products and services for landlords related to your real estate investment including REAL ESTATE FORMS, tenant debt collection, tenant background checks, insurance and financing. Find out more at joinaaoa. To subscribe to our blog, click here. Rent it Right by Janet Portman, Inman News Over the past two years we’ve had four sets of tenants; one broke the lease and we had to file evictions on two of We’re tired of the fast turnover — are we or the management company doing anything wrong? –Jose M. Talk to other landlords and find out who has had a good experience. The number of evictions they’ve had to file and whether they’ve had hassle-free tenants will tell the whole story. See Janet Portman’s feature, How to Negotiate a Lease Buyout.
American Apartment Owners Association offers discounts on products and services for landlords related to your real estate investment including REAL ESTATE FORMS, tenant debt collection, tenant background checks, insurance and financing. Find out more at joinaaoa.
To subscribe to our blog, click here. Tip #24: Stick to the Script!
Ever call up your applicant’s previous landlord, then hurry through the call because you didn’t know what to ask? Well, you are not alone!
Having a script can help you get the information you need. Here are some questions that other landlords ask:
Have-to-Asks:
Is this a good time to talk, or should we reschedule when you have more time?
Did the tenant pay their rent on time, every time?
Did the tenant give you notice they were leaving? Are they leaving prior to the lease expiring?
Did neighbors or anyone complain about this tenant?
Did you ever have to warn the tenant about behavior?
Was the unit/property in good condition when they left?
Did you return all of the deposit?
Good-to-Knows:
Why did they leave?
Did they have a pet? Did you know they had a pet? Was the pet disruptive?
What type of unit did they rent? How much did they pay?
Did they pay by check?
It is a good practice to ask the same questions of each landlord reference, for each applicant. Create a checklist with the questions, and jot down the answers. Place the completed sheet in the tenant file.
Do you have other suggestions? We’d love to know! Share your comments below.
See last week’s Landlord Quick Tip.
Do you have a tip to share with other landlords? Contact our editor at kim@joinaaoa.org.
American Apartment Owners Association offers discounts for landlords on products and services related to your rental investment, including real estate forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org. To subscribe to our blog, click here.
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