When screening potential tenants, landlords may have trouble determining what factors to consider the most closely. In the interest of renting out vacant units, it can be tempting to ignore certain red flags. However, there are some warning signs that should not be overlooked to help ensure ideal tenant selection.

The following are six rental application and tenant screening red flags landlords should never ignore when screening potential tenants:

1. Past Evictions

The worst-case outcome of a relationship with a tenant is the need to evict them, whether it’s due to nonpayment of rent, damage to the unit or conflicts with neighbors or other tenants. A check of the applicant’s eviction record allows landlords to see if the applicant has a history of this type of issue. A professional tenant screening service can assist with screening potential tenants and other key background checks.

2. Screening Potential Tenants With A Criminal Past

A history of criminal activity is another red flag that shouldn’t be ignored, especially if it relates to finances, property damage or violent behavior. Past behavior is often a strong indicator of future behavior, especially if the crime was committed in the recent past. A professional tenant screening and background check service can assist with determining specifics from each applicant’s past so that sound decisions can be made which should also help to reduce landlord stress.

3. Doubts About Employment Or Income

Ideally, the cost of the rent should equal no more than one-third of the household income of each applicant. Jobs and income amounts listed on a rental application should be verified with the employer. This will help to remove doubts about an applicant’s employment history as well as the income amount they claim to make. If these areas cannot be verified when screening potential tenants, the applicant is likely not a good choice.

4. Poor Credit

Credit history is another indicator of viability as a tenant. In addition to reflecting their financial history and probable future, a credit record check can tell you their overall credit score. Generally, landlords should look for a score of at least 620 to consider a tenant a possible prospect. However, the higher the better. A credit score of over 760 is considered excellent.

5. Gaps On Their Application Forms

If an applicant leaves blanks on their application forms or has gaps in their employment or rental history that they won’t explain, this is another red flag. References that don’t add up or verify their application information are also problematic.

6. In a Rush to Move In

If a tenant is in a big hurry to move in, this could be another red flag. Needing a place to move into within a week or less could be a sign that the applicant’s life is in disarray, and this could indicate that they may not be the perfect tenant. Take extra time to scrutinize the applications of such individuals when screening potential tenants and considering them for tenancy.

Being a landlord means running a business, and the best landlords select tenants who are most likely to be responsible both with the property and with payment terms. This means paying attention to key warning signs. Professional tenant screening can help with screening potential tenants and spotting the signs of a problem tenant so that the best tenants are selected.

Sources: https://www.zillow.com/rental-manager/resources/understanding-tenant-credit-reports/

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

Most well-intended landlords think they are conducting non-discriminatory tenant screening and have no intention to discriminate during their rental screening process. Unfortunately, being uninformed about the law can lead to unintended mistakes. This in turn can result in litigation, which can rack up substantial bills in legal fees and fines.

For example, it is illegal to refuse to rent to families with children or women who are pregnant. It is also illegal to discriminate based on race or a disability. However, some new landlords might not be aware that doing so could result in a lawsuit.

The following is a compilation of six key non-discriminatory tenant screening guidelines for landlords to help ensure rental screening is never conducted in a discriminatory manner:

1. Know the 7 Classes of the Fair Housing Act

The U.S. Fair Housing Act outlines seven main areas that are off limits for landlords while they are conducting their screening process. They are: race, sex, skin color, national origin, religion, family status or disability. Asking written or verbal questions about these areas as part of the screening process is illegal. Discouraging certain classes through rental advertising is also illegal.

2. Know State and Local Laws

In addition to these federal U.S. Fair Housing Act requirements, each state and municipality may have additional housing laws. It is crucial for landlords to be aware of and current on these laws so that they can remain in compliance. Age, sexual preference and occupation are just a few examples. Partnering with a professional screening company will ensure assistance in background screening that is kept within the parameters of the law.

3. Be Consistent

While the tenant screening process should follow the letter of state and federal laws, it should also be the same for every applicant. Landlords should develop a comprehensive non-discriminatory tenant screening process and then make sure it is applied to every applicant uniformly. No one should receive preferential treatment.

4. Send An Adverse Action Letter For Rejections

After rejecting prospective tenants, consider sending an adverse action letter, also known as a declination letter. The letter should state the legal reason(s) why the applicant was rejected, such as insufficient income or credit history problems. There are templates available online that clearly show acceptable reasons for rejecting an applicant and assist landlords in covering themselves legally. This step can assist greatly in avoiding screening-related discrimination claims.

5. Enlist a Professional Non-Discriminatory Tenant Screening Company

Landlords should strongly consider hiring a professional non-discriminatory tenant screening background check company to take care of a portion of the tenant applicant screening. This can ensure that crucial portions of the screening are conducted in a legal and comprehensive manner, reducing the chances of legal action taken due to discriminatory behavior.

6. Keep Records and Paperwork On File

Retain paperwork related to all applicants for at least 3 years, even for those that do not become tenants. A paper trail proving that non-discriminatory tenant screening was done professionally and legally will help to ensure a ruling in the landlord’s favor should legal action arise down the road.

Most landlords are well-intentioned and do not set out to discriminate when they are screening a rental applicant. However, some of the legal parameters can be unclear, and laws can also be amended over time. Partnering with a professional non-discriminatory tenant screening company can assist with staying compliant and renting to the very best candidates.

Source: https://www.thebalance.com/what-s-an-adverse-action-notice-959985

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

Chicago has one of the highest crime rates in the nation. However, one neighborhood is being proactive and seeing a reduction in crime by using Chicago tenant screening to fill its area rentals.

The Elmwood Park neighborhood is making a concerted effort to reduce crime and increase quality of life for all renters and residents in the area. A rising tide lifts all boats, and the whole community benefits.

Crime-Free Housing Class Teaches Importance of Chicago Tenant Screening

The police department for Elmwood Park is also chipping in, offering classes for area landlords to help reduce crime and improve conditions for all Elmwood Park residents. The police department’s crime-free housing class touches on a myriad of subjects and issues to help neighborhood residents to create a safer area for all who live there.

One of the top discussion points for the class is the importance of proper Chicago tenant screening. Many landlords have learned the hard way that just letting anyone live in a property without a proper background check is a recipe for disaster. Professional Chicago tenant screening can check criminal history, past evictions, credit history and much more.

In Addition to Chicago Tenant Screening, Elmwood Park landlords are raising quality of life in the neighborhood in other ways that include the following:

Improving Quality and Curb Appeal. Making improvements to the properties both inside and out is very important as well. Those with criminal histories and plans to continue this behavior tend to gravitate toward properties that look run down and conducive to such activities.

Peep Holes. The simple act of installing a peep hole in entryway doors allows tenants to easily screen who is knocking at their door. This allows them to keep suspicious persons out of the property, lowering the risk of incidents of crime.

Be a Proactive Landlord. Landlords should strive to visit their properties once per week. Cleaning up the exterior of the place and checking in with tenants can ensure that everyone continues to abide by the law.

Address Crime Immediately. Addressing potential signs of criminal activity (drug use, break-ins, etc.) is crucial so that it doesn’t escalate and become a pattern.

The Elmwood Park neighborhood has been conducting its crime-free housing class since 2011, and it is a requirement for all landlords who wish to rent out their properties. Elmwood Park police offers have reported that most of the calls they’ve received within the past couple decades have been landlord-tenant related.

A Strong Motivation to Screen All Rental Candidates

Property owners in Elmwood Park know that they can receive a nuisance abatement ticket if three nuisance activities occur at one of their properties within 12 months. This is motivation for area landlords to ensure that their properties are being rented by good citizens who abide by the law.

Participants in the crime-free housing class come away with awareness of the importance of proper Chicago tenant screening for all candidates being considered as a resident one of their properties. Pride of ownership and increasing curb appeal is important as well; however, the ability to screen rental applicants for any past criminal activity, evictions and credit problems is the most important factor in reducing crime and improving quality of life in the neighborhood.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

All landlords hope for smooth sailing at every phase of the rental process. However, from time to time tenant disputes will invariably arise. The best way to handle these tenant disputes can depend on a number of factors.

The following are some tips for resolving tenant disputes and issues that come up with residents:

1. Know the Law

Landlords can avoid a number of problems just by being aware of the specific laws regarding both tenant and landlord rights. Every state has a different set of laws regarding issues that range from acceptable late fee amounts to tenant screening parameters. Knowing the law can help keep landlords in compliance and better able to communicate with tenants on solid ground.

2. Work On Communication

One of the biggest factors in many tenant disputes is often a lack of clear communication. Whether the terms required weren’t communicated clearly or the issue escalates and communication breaks down, this can be a major source of conflict in relationships. Landlords should strive to make good communication and positive relations a priority in their dealings with tenants. Talking in person instead of by phone, text or email can also be more effective for reaching a resolution.

3. Document and Keep Records of Everything

With any potential legal issue, landlords will want to ensure they will have the best case possible. One of the best courses of action where this is concerned is to keep records of everything that transpires related to the issue. From photos of damage and copies of documents to a log book of all interactions with the tenant, having tangible evidence to bring into court will bolster a landlord’s case.

4. Consider Mediation or Arbitration

If a landlord and tenant are at an impasse in a tenant dispute, hiring a professional mediator or arbitrator can offer a solution. Some are even trained specifically in landlord-tenant disputes. It should be noted that while a mediator is simply an objective third party, using the arbitration process will result in both parties agreeing to submit to their ruling no matter what it is.

5. Use the Courts System

If the issue cannot be resolved any other way, legal action may be required. Landlords can use the small claims court system; however, in some cases civil or criminal court may be more appropriate. While landlords may choose to represent themselves, enlisting the help of an experienced attorney may be advisable for more complicated matters.

6. Pre-Screen All Tenants

While tenant screening is not a guarantee against ever having a landlord-tenant dispute, it can greatly minimize the risk of problem tenants. Tenant screening services can help with determining financial viability, credit history, eviction history and criminal background. Applicants that have few if any issues in their past will invariably make better tenants who are less likely to cause problems.

Disagreements or tenant disputes are an inevitable part of being a landlord, especially those renting out multiple properties. Finding efficient, effective ways to resolve these tenant disputes will create a smoother experience for both landlords and tenants. Landlords can use these six tips to help minimize issues and resolve tenant disputes as quickly and efficiently as possible.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

Source: http://www.nolo.com/legal-encyclopedia/free-books/renters-rights-book/chapter13-2.html

Screening tenants is essential for connecting with the best quality renters possible. Inadequate screening can lead to nightmares down the road, including lost rent money, damage to the property, and lawsuits from other tenants. Tenant background screening can identify a range of problematic issues in potential tenants, also known as tenant screening red flags.

Here are the top 5 Tenant Screening Red Flags:

1. Bad Credit

The credit report and credit score of an applicant can reveal tenant screening red flags and is extremely valuable in determining if they can be relied upon to pay their rent going forward. The credit check conducted during a professional tenant screening can unearth financial issues as well as problems with trustworthiness and paying on time.

2. Bankruptcy

Tenant screening and financial background checks can also determine if a tenant has declared bankruptcy. While it is a testament to the client’s money management history, it could actually indicate better news than just having bad credit. If the bankruptcy occurred recently, the individual may have a clean financial slate with no debts at this time. However, if the bankruptcy was several years ago, be wary if the applicant has already begun to amass personal debts again.

3. Criminal History

In most cases, landlords will want to steer clear of renters who have criminal backgrounds. Felonies are particularly problematic, and crimes involving drugs and/or violence are major tenant screening red flags. However, even white collar crime should give landlords pause, since this indicates problems with character and honesty.

4. Sexual Offenses

Each municipality has a sexual offender registry, and a professional tenant screening service can assist with finding out if an applicant is on it. Renting to a past sexual offender can be a huge potential risk to people in the area, especially if the offenses were committed against children.

Clearly, professional tenant screening is extremely important in learning more about rental applicants. However, there is another key tenant screening red flag for which landlords should screen…

5. Insufficient Income

The general guideline for housing cost is that it shouldn’t be more than one-third of the total household income. This is why knowing each applicant’s current employment status and income is so crucial. Persons who aren’t earning at least two-thirds more than the rent cost could pose a financial liability for landlords down the road.

Adequate screening of tenants is crucial to connecting with high-quality renters. A professional screening service can assist with finding many tenant screening red flags before it’s too late.

Source: http://www.forbes.com/sites/moneywisewomen/2012/02/16/screen-tenants-without-getting-yourself-into-trouble/

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.