Imagine that you had a device that let you see the history of everyone you passed by. All you had to do was scan them to see everything they've ever done or every dollar they've ever spent.
Tenant screening is almost like that for a landlord. The problem is that it's not as easy as a scanner, and its tedious nature makes it easy to make mistakes.
Read on to learn the most important dos and don'ts of tenant screening.
Do Know the Law
Three of the most important tenant screening regulations to know are Fair Housing, the FRCA, and the ADA.
Fair Housing forbids landlords from denying housing based on protected classes such as:
- Race
- Color
- National origin
- Religion
- Sex
- Familial status
- Disability
The FRCA or Fair Credit Reporting Act regulates how you use information from credit checks. You must send an Adverse Reaction Notice to anyone you reject based on their credit score.
The ADA or Americans with Disabilities Act requires you to make housing accessible to those with disabilities. This includes accommodations such as service animals.
Keep up with any changes or additional state regulations. The POWR or Protecting Opportunities and Worker's Rights Act recently added marital status as a protected class in Colorado.
Do Establish Clear Criteria
What's the minimum credit score or rent-to-income ratio you'll accept? What would be a dealbreaker in their background checks?
Answer these questions after you buy your new property. They need to apply equally to every applicant. That's especially important if they have a criminal record.
77.7 million Americans have a record, and 10,000 to 12,000 more earn one every day. It's considered discrimination to deny them on their record alone, so judge each one on a case-by-case basis.
Do Perform and Verify Comprehensive Checks
Hire tenant screening services to look into each applicant's:
- Criminal history
- Eviction history
- Employment history
- Credit history
Confirm all the information you receive. Call their landlords and employers and do online research to see if they are who they say they are.
Do Get Help
Tenant placement services involve everything related to finding and placing tenants, including screening.
They know the right criteria to use to find the best tenants. They're also aware of the law to help avoid discrimination issues.
Don't Delete Your Documents
Tenant screening involves managing paperwork such as:
- Rental applications
- Signed releases
- Screening reports
- Adverse action letters
Avoid the urge to throw it out when the tenant gets accepted or denied. It provides evidence if a tenant ever tries to take you to court for discrimination.
Don't Skip the Application Process
Many landlords skip the tenant screening process entirely. You may have been warned against this, but not skipping the application process is also useful landlord advice.
Watch what you put on the application. Avoid anything related to any protected classes.
Don't share personal opinions in interviews. Stick to the facts from your tenant checks and avoid any questions or statements that could be considered discriminatory.
Who Do I Hire for Tenant Screening?
Tenant screening requires comprehensive checks, following the law, and using clear criteria. Don't delete any documents or skip the application process.
PMI Fountain Creek provides full-service property management services. We use state-of-the-art technology and expert service to get you the maximum rental income possible. Contact us to learn how today.
