Wednesday, June 27, 2012

The first impression is a crucial step in the tenant screening process


A lot has changed about the tenant screening process and the world in recent decades. We are a more casual society – we dress more casually, speak more casually to strangers, among other things. Still, you can tell a lot about a person from his or her first impression, and that is still an important step in the tenant screening. Sure it’s crucial to obtain their credit report and conduct a background check, to verify their employment and check references. But meeting a prospective tenant face to face satisfies a “gut check” that you can’t get strictly from a written report. 
There are a few things to look for when meeting a tenant applicant at the rental property, things that can go a long way toward helping you decide whether the applicant is worthy of becoming your tenant. 
  • His attire. Applicants likely won’t treat your face-to-face meeting like a job interview; they mostly dress casually, and that’s fine. But are the clothes clean and presentable? Is there basic hygiene? The way a person presents himself says a lot about the value they place on themselves and their interactions with others. If he doesn’t respect himself, he might not respect you. 
  • His interest. Does he seem honestly interested and excited about the prospect of living in the home? Is he engaged and open with you? 
  • His questions.  Does he ask questions about breaking the lease, pets and other rules that lead you to believe he’ll be trying to get one over on you? 
  • His application. Are there misspellings and blank spaces? Is it completely filled out? Is he making excuses about what an ex-landlord or employer might say when you call his references? These are all red flags to keep in mind when conducting the tenant screening.

Wednesday, June 13, 2012

Interpret eviction records correctly to avoid errors in judgment

If you are a landlord or property manager who uses tenant screening as a reliable tool to weed out potentially bad tenants and find the best ones, congratulations – you’re doing yourself and your business a big favor. But if part of that tenant screening report includes an eviction record, your interpretation and actions regarding the results could open you up to discrimination claims, not to mention unfairly denying a potentially wonderful tenant the chance to live on your property. 
The use of eviction records can be very helpful, but be careful about the way you use them. So when requesting an eviction records search, keep these things in mind:
  • The date of the judgment: According to the Fair Credit Reporting Act, civil suits, civil judgments, and records cannot be taken into account in the rental decision if they are older than seven years or until the governing statute of limitations has expired, whichever period is longer.
  • The number of records returned:  A single offense may be due to special circumstances, while a list of offenses most likely indicates a much larger problem. If there is a single offense, ask the applicant to explain the situation, and contact the former landlord to back up their story. 
  • The information contained in the record:  Any system that returns instant results has the potential for error. Verify that what you receive matches other information provided by your applicant or other areas of their tenant screening report. 
If you follow these guidelines and leave room for a frank discussion with your tenant applicant and his or her previous landlords, you could do both of you a favor and avoid an error in judgment that costs somebody a great place to live, and costs you a good tenant.