ATS has solid experience, longevity in a crowded field of start-ups

With the upswing in demand for background checks and the increasing need for criminal records checks and credit reports during the tenant application process, a whole new crop of tenant screening service companies has popped up in recent years. Their websites are filled with tempting promises of cheap reports in record time. But do you know anything about them? How much experience do they have? Which databases are they checking? How thorough, and really how cheap, is the service?

American Tenant Screen has been around since 1988. Long before many of today’s landlords were in the real estate business, ATS was establishing a reputation based on sound guiding principles and exceptional customer service. We pride ourselves on the thoroughness of our background checks: We pursue verifications to completion or until you tell us to stop...whichever comes first.

There are no hidden charges associated with our services; our clients always know the fees up front. And our customer service continues to be second to none. Our guarantee is that a phone will be answered by a live expert within 1 minute of your call during business hours. And we never charge for customer support.

Tenant screening may seem like a necessary formality to some, but it is a serious business. It’s your property, your reputation, and your money on the line if you select an unqualified tenant. Only trust the most experienced professionals to screen your tenants and give you the peace of mind you deserve. 

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Tenant screening service should help you interpret the results, not just spit out a report

Most property owners understand the importance of tenant screening, but many are still a bit lost about how best to use all the information gleaned from background checks and credit reports. The best way to make the tenant screening process as simple and clear as possible is to hire a tenant screening service that not only provides accurate reports but also qualifies the information. This rare extra step allows the landlord to make an informed, quantifiable decision about who should become their next tenant.

At ATS, the landlord sets the criteria for the hiring decision. In other words, you pick what is most important to you in regards to the background check, and ATS returns an approval, conditional approval or denial based on what was found regarding the criteria you set. This system not only simplifies the screening process, it also creates a uniform decision that negates any question of bias and helps eliminate any subconscious discrimination against an applicant.

For even greater efficiency, ATS offers its clients pre-filled denial notice and Fair Credit Reporting Act compliance letters, to help landlords deal with the legalities involved with making the best decision for their property while maintaining a balance of fairness and objectivity.

http://www.alwaysscreen.com/

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Renting During a Recession Means Making Concessions

Every landlord hopes for a dream tenant to walk through the door, someone who’s friendly and clean with excellent credit, solid employment, good references and no criminal record. While these tenants do exist, it’s getting harder to find renters with spotless credit reports and an unblemished employment history. These last few years of layoffs and pay cuts have wreaked havoc on families across the country, and plenty of upstanding citizens, many who’ve owned their own home before, are facing hard times.

Landlords can’t become bleeding hearts, opening their doors to every victim of the recession. It’s still important to do a thorough tenant screening on applicants and think long and hard about the risks associated with allowing someone to sign a lease. But if the potential tenants you’ve been screening have lower credit scores than what you’re used to accepting, consider a few things:

1. Don’t make a foreclosure a deal breaker. The number of people who have a mortgage in foreclosure or mortgage payments significantly past due is rising. While those people couldn’t hang onto their homes, they more than likely are good prospects for renting because they’re used to caring for and maintaining a home, and they’re determined to improve their financial situation, which means they’ll pay their rent on time.
2. Reduce the security deposit but make it nonrefundable. Reducing the security deposit gives a break to those who will probably be good tenants but don’t have a lot of cash lying around to drop all at once. And making the security deposit non-refundable helps alleviate some of your risk in renting to someone with a lower credit rating.

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Landlords Should Heed Top Trends in Employment Screening

Employment Screening Resources (ESR) has announced its annual list of emerging and influential trends in employment background screening. Some of these 2011 trends have implications for the field of property management when it comes to tenant screening.

1. Controversy over whether it’s discriminatory for employers to use credit reports for employment increase. Because of unemployment, many would-be workers are stuck in a cycle of having bad credit because they can’t find work, and being unable to get a job because they have bad credit. In response, some states have passed laws or are considering laws to restrict the use of credit reports and employment and the U.S. Equal Employment Opportunity Commission (EEOC) is looking closely at this area and has filed lawsuits alleging discriminatory use.
2. Questions about criminal records of job applicants become more difficult for employers to ask. An employer who hires a person with a criminal record can be found liable for negligent hiring if the decision results in harm and could have been avoided by a criminal record check. The easiest way to avoid this is to perform a thorough background check on a job applicant, but the issue of whether employers can use a job application to ask about one’s criminal has become more complicated.
3. Employers discover fast and cheap online background checks using criminal databases not always accurate or legal. With the trend toward more thorough checking into the pasts of potential employees, many websites are springing up that promise cheap instant background checks using “national criminal databases.” But most of these sites aren’t legitimate or thorough. There is much truth to the saying “You get what you pay for.”
4. New accreditation standards help employers select background screening firms. Last year the National Association of Professional Background Screeners’ Background Screening Credentialing Council created the Background Screening Agency Accreditation Program to advance professionalism in the background screening industry. The program promotes best practices in the industry, awareness of legal compliance, and the development of standards to protect consumers.

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Credit Bureau’s Use of Rental Payment History Drawing Mixed Reviews

Experian RentBureau, one of the big three credit bureaus, recently began collecting data about consumer rental payments and including that data in its credit reports. Many see this as a positive step, particularly for those who are credit-worthy even if they don’t yet have traditional forms of credit, like credit cards or mortgages. Before this change, a lot of responsible people who don’t have a lot of credit were left at a disadvantage. Now their rental payment history can help boost (or lower) their credit scores. 

Still, there are some skeptics out there. Some point out that RentBureau’s database only covers about 8 million renters. That’s just over one-fifth of U.S. rental households, which is estimated at about 39 million. That leaves a ton of renters still at a credit disadvantage, even among their renting peers.

Others say reporting information on rental payment history may have a negative effect on low-income families struggling to pay the bills during the current recession. If an individual’s scores dip after a few late rent payments it’s not necessarily because that tenant is suddenly irresponsible, but because the economy is making it difficult for anyone to make ends meet.

As with any issue pertaining to credit reports, there are always two sides to a story. That’s why it’s important to stay on top of one’s own credit score, to know where you stand with creditors and lending agencies, and to dispute any inaccuracies.

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How to Find Tenant Buyers

If you are thinking of selling your investment property, a good way to go might be to find an interested, qualified tenant to sign a lease option purchase.

Of course finding the right tenant for such an agreement is the hard part. Tenant buyers are people who consider buying a home with a lease option as the best bet for them to own real estate.

There are many reasons tenants rent property instead of buy, but one of the biggest is the inability to obtain financing for a mortgage. Finding them isn’t as hard as it might seem, you just have to make your intentions known.

First, take a closer look at the current tenants. Are they financially secure? Do they have stable employment, pay rent on time, and take care of the property? If so, it might be a good idea to present a lease option purchase to them. They may not know that you would like to sell the house, and giving them first crack at it could be the perfect solution for both of you. (You’ll want to go ahead and run a current credit check on them if they are interested.)

Another way to go is to list your property as a rent-to-own or lease purchase option on websites and in a classified ad. Potential tenant buyers will come out of the woodwork, particularly if the property is in great shape and ready for new tenants who dream of one day owning their own home.

Credit reports can tell a lot about a potential tenant, but they do not show whether someone has a previous eviction notice. Fill in the blanks on a prospective tenant’s background by using a tenant screening service to see important details about their rental history.

Before Buying Investment Property, Consider This

Are you thinking about buying investment property and hoping to make a second income from leasing that property? There are a few critical things you should consider when deciding what property to buy.

1. How many tenants could you get from the property? If it’s a single-family home, chances are you’ll only have one source of income for rent. If that tenant falls behind on payments there won’t be any money coming to you to help pay the mortgage. In a duplex or other multi-family housing situation, you’ll have multiple income streams. Then again, more tenants means more maintenance and, perhaps, more hassles.

2. Make sure the building is inspected by a qualified, reputable home inspector. You don’t want any surprises when it comes to necessary repairs or upgrades before you can even begin leasing the space.

3. Check the comparables. Find out how much similar properties in the neighborhood are charging for rent, and what that includes (sewer, trash, parking, other utilities). If your rental income expectations are too high for the area, it’s best to keep looking.

4. Come up with a plan for how the property will be managed. Will you serve as the landlord, or hire a property manager? Will you inspect the property regularly? Do you have a relationship with a nearby repairman to do routine maintenance and repairs when necessary?

5. Consider the location. If you’ve never owned an investment property, you’re probably going to want one that is close to where you live. Buying and leasing a building in a different town can be more of a hassle than you bargained for.

Credit reports can tell a lot about a potential tenant, but they do not show whether someone has a previous eviction notice. Fill in the blanks on a prospective tenant’s background by using a tenant screening service to see important details about their rental history.

Rental Payment History May Be Added to Credit Rating

Tenants who are late paying rent have never been concerned about the impact that a late rent payment might have on their credit rating. But that may be changing, as Experian RentBureau, one of the big three credit bureaus, recently began collecting data about consumer rental payments and including that data in its credit reports. This year Experian is only reporting positive rental payment information, but starting in 2012, the company also will report negative information such as late rent payments.

Some experts say including data about rent payments in credit reports could benefit consumers because it will help banks and other lenders pick up on potential consumers who are credit-worthy even if they don’t yet have traditional forms of credit, like credit cards or mortgages. It could be useful for a good tenant who’s never been late on rent to have that kind of positive credit history show up on a credit check when they’re looking to buy their first house or want to establish credit.

RentBureau is a national network of 45 property companies that collect data about rental payments and automatically report that payment history to RentBureau every 24 hours. Experian acquired RentBureau in 2010.

Did you know previous eviction notices don’t show up on credit reports? Don’t be duped into thinking a credit check is all you need to be assured you don’t have a problem tenant. Get a professional tenant screening!

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