Don’t Reject on a Rumor. Make Lease Rules Clear and Trust the Tenant

Consider this scenario: A 21-year-old recent college graduate applies to become a tenant of your property. You run a background check, employment check, and credit check and everything comes out clean. But while calling personal references and her previous landlord, you discover that the young woman supposedly has a boyfriend who basically lives with her. Furthermore, there are offhanded remarks made about said boyfriend being an illegal drug user or, worse yet, a dealer.

What do you do? You certainly don’t want to open yourself, and your property, up to potential trouble with the law. And you don’t want anyone living in your property who is not on the lease. But you can’t discriminate against a tenant based on rumors and hearsay.

If you liked the applicant, she gave you a good first impression, and everything in her application and background check turns out solid, then go with your gut to sign her to a lease. But before you do, have a candid talk with the applicant that expresses your rules against people living in the home that are not on the lease, and that breaking such rules will result in eviction. Be stern from the start and allow her to decide whether something is worth risking her financial stability and housing future. Chances are, she’ll either withdraw her application and look elsewhere for a place with a more lenient landlord, or she’ll agree to your terms and hold up her end of the bargain.

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Back to School, Back to Safety: Make Sure Your Property Gets an ‘A’

It’s that time of year again: Back to school season. Now is a good time for landlords to assess their rental properties for any issues that could prevent their tenants or neighbors from staying safe during their commutes to and from school.

If you have a new tenant with children who moved in during the summer, it’s nice to let them know the bus route and approximate bus times, if you know them. At the very least, give them the name and number of the school their children will be assigned to. And if your property includes or is adjacent to a school bus stop, make sure there are no safety hazards in the area. Remove anything on the ground that might hinder small children from getting there, and prune back any branches or other vegetation that could interfere with a bus driver’s line of sight.

Likewise, if you know that neighborhood children use your property as part of their commute to school, make sure signs are in place at proper crosswalk areas and nothing on the property will impede them from reaching their destination.

If tenants have gotten into the habit of parking in spaces that might hinder a school bus from passing by safely, now’s the time to remind tenants about the parking rules on the property and make them aware that children will be out walking during morning rush hours commutes.

It only takes a little effort to make sure everyone stays safe this school year.

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Hire a Tenant Screening Service That Tailors The Reports to Your Needs

Every tenant is different, and therefore no two rental applications or tenant screening reports will look the same. Each time you’re vetting potential tenants, it’s of the utmost importance to get the necessary background information about them to ensure they are who they say they are, with the job they claim to hold, and the clean rental history they say they have.

But every circumstance is a little bit different, and you shouldn’t be forced to pay for a lump of tenant screening services if you don’t necessarily need all of them. Perhaps you already have verified a person’s employment. Perhaps they’ve provided you with a recent copy of their credit report. Whatever the circumstances are, you should hire a professional tenant screening service that is willing and able to tailor the screening service to your needs, only generating those reports you really need and not wasting your time and your applicant’s money with frivolous checks and duplicate reports.

When searching for the right tenant screening service, find out whether they offer different levels of background screening services. Research until you find a reputable company that offers everything from single a la carte screening services, to full-service background screening packages that check everything from employment verification and previous eviction reports to criminal records and sex offender registries. 

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Wisconsin Steps Up to Make Tenant Screening Easier

Tenant screening is a critical step toward a landlord’s successful relationship with a tenant. Recognizing this, the Wisconsin legislature is making it easier for tenant screening information to make into the hands of landlords who need it most.

In the past, local ordinances and laws have made it difficult for landlords to have access to important information regarding a tenant’s previous rental history, credit information, criminal history and other details. But a new statewide law makes it illegal for any city, town, village or county to enforce such ordinances that keep necessary tenant screening information under cover.

The law makes it clear that landlords are free to obtain and use any of the following information with respect to a tenant or prospective tenant: Monthly household income; employment information; rental history; credit report; court records related to criminal history, including arrest and conviction records, to which there is public access; and identifying information such as a Social Security number.

Those in the Wisconsin legislature clearly understand that landlords are not trying to violate a person’s privacy rights by obtaining this information. On the contrary, they’re just trying to protect their own assets and make the most intelligent decision for their business interests (without unlawfully discriminating against anyone, of course). Hopefully more states will follow suit.

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Ignoring Necessary Repairs Could Lead to Injury and Liability

A New Haven, CT, landlord was arrested recently after one of her tenants fell off a second-story porch when a railing broke. According to an Associated Press story, the landlord had failed to address 28 code violations that were brought to her attention during inspections at the three-family home she owned in 2009. The tenant was seriously injured in the fall.

Such a story is tragic and completely preventable. The failure to fix problems that were two years old amounts to negligence on the part of the landlord. A landlord’s duties go far beyond tenant screening for qualified renters and collecting monthly rental payments. A landlord is responsible for property maintenance so that it remains not just an aesthetically appealing home but a safe one as well. Necessary repairs should be made promptly upon hearing about anything that is broken or has not been properly maintained.

To make this an easy part of the job, the landlord should stay in frequent contact with the tenant, taking complaints seriously and asking frequently whether everything in the home is in good working condition. And to avoid liability and other legal trouble, the landlord should always promptly address any issues that arise, either through the tenant or through the various codes and other rules governing properties in the area.

No decent landlord wants to be on the wrong side of the law or cause harm to a tenant. Common sense and a good handyman on call can help landlords avoid such tragedy.

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Meth Lab Cleanup Is a Cost You Don’t Want to Incur

Methamphetamine is a problem that can destroy lives, bank accounts and families in a very short amount of time. But homemade meth labs are also highly damaging to residential properties. The ingredients used in the manufacturing of meth, when combined, create toxic contaminants that are absorbed into walls, flooring, and ventilation systems.

Once a meth lab is discovered and the residents are arrested, the problem of how to clean up the property falls to the property owner. Cleaning up the toxic contaminants left behind can be a lengthy and expensive process. After a typical meth lab bust, once the police have removed the chemicals and equipment, the local health department writes a condemnation order and orders the property owner to clean up the area. That can cost upwards of $30,000, an expense that is compounded by the owner’s inability to get rental payments out of the property for the month(s) it is uninhabitable due to the cleaning process.

Because the liability is so great when it comes to meth labs, every property owner should be diligent about conducting thorough background checks for all prospective tenants. Look for a history of issues related to substance abuse, check the tenant’s criminal record, and speak with former landlords about the tenant to get landlord references. Remember, screening residents is the first line of defense.

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Use Same Standards During Each Tenant Screening Process

Selecting a tenant isn’t rocket science, but it can be a complicated, confusing process if you don’t have a set plan in place. Every landlord should have a set list of standards that any prospective tenant must meet in order to be approved to sign the lease and move in. Those standards may differ from landlord to landlord, based on personal preferences, the type of rental unit, and past experiences with tenants. Here are some recommended standards for approving a tenant application:

• The application itself is properly completed.

• The prospective tenant is 18 or older.

• The prospective tenant must prove a monthly income that is three times the amount of the monthly rent.

• There can be no previous evictions on the tenant’s record.

• The tenant has a clean criminal record.

• The tenant’s credit score must be at least XXX.

• The tenant must be currently employed, and undergo a successful employment verification process.

• The tenant’s previous landlord must give a positive recommendation.

Whatever a landlord decides his standards for application approval are, those standards should be written down and checked (twice!) during each tenant screening process for every single applicant. That’s because in the rush to find a tenant — amid the sea of paperwork and reports and the business of collecting fees and applications — it’s easy to overlook a standard or two. It’s easy to forget that you were supposed to call their previous landlord or their current employer. So write down your list of standards and keep it on file to adhere to each and every time.

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