The Fair Housing Act (FHA) has reached its 50th anniversary and occurrences of discrimination are still plaguing the current housing market.  This benchmark should be a reminder to landlords, property managers and owners that remaining compliant with the FHA is still a top priority.

Fifty years ago on April 11, 1968 President Lyndon Johnson signed the Fair Housing Act , an action designed to eliminate discrimination in housing based on race, color, religion, and national origin and later expanded to cover sex, familial status, handicap, disability, sexual orientation and gender identity.  journalstandard.com/news/20180407/celebrating-50-years-of-fair-housing-act?start=2

In light of the 50th anniversary of the Fair Housing Act all landlords and property managers should take the time to review current tenant screening and housing policies in order to stay fully compliant with the FHA and other related laws governing renting and tenant background checks.

The FHA and its ground breaking effort to eliminate discrimination in housing both for renters and buyers still has not achieved its goals.  The Fair Housing Act was passed to protect at-risk classes in their efforts to rent and buy housing fairly and without discrimination; and should immediately remind landlords and property managers to review all existing tenant screening policies.

The Fair Housing Act of 1968, and as expanded in subsequent years, is a tool used to enforce against discrimination in housing, both rental and purchase.

From JournalStandard.com (Apr 07 18):

This legislation has made it illegal to discriminate against anyone in a protected class when it comes to housing. This law applies to renting as well as purchasing housing. It is also illegal to refuse to rent to someone because of discrimination and the Department of Housing and Urban Development (HUD) has very stiff penalties for violations. You can be fined up to $16,000 for a first offense and upward of $100,000 for additional offenses. These violations are extremely serious and the government has zero tolerance for such discrimination.  ibid

Over the last fifty years the Fair Housing Act has accomplished a great deal but there is always room for improvement.

From OzarkFirst.com (Apr 05, 18):

“50 years is a long time, and while there’s been a lot of progress,” … “there is always so much more to do. And I think this is a good time to pause and say, yes we’ve done well, but we can still do much better.”  ozarksfirst.com/news/celebrating-50th-anniversary-of-the-fair-housing-act/1103533834

Anniversaries such as the 50th for the Fair Housing Act are great reminders to landlords to insure all policies are and continue to be fully compliant with law. Utilizing a well-qualified third-party tenant screening agency continues to be a best practice in order to remain fully compliant.

Across the country different cities and states are using the month of April as a way to remind citizens of housing rights.

From the Sentinel-Tribune of Bowling Green, Ohio (Apr. 04, 18):

The city of Bowling Green supports fair housing efforts to eliminate discrimination in housing by providing education to seekers of housing, rental property owners/managers and others regarding state and federal fair housing laws; monitors local advertising for potential fair housing violations; and reports violations of the fair housing acts to the Ohio Civil Rights Commission.  sent-trib.com/news/local/april-is-national-fair-housing-month/article_f89d4ec3-f5c3-5049-9c0f-d66096f79a52.html

Landlords and property managers should use the anniversary of the Fair Housing Act as a reminder to insure tenant screening policies are fully compliant and as a means to avoid potential penalty.

Over the past 50 years it has become clear as a nation that the idea of discrimination when it comes to an essential part of life like housing needs to be eliminated.  Citizens and legal residents of this country need a place to live and being turned away due to some form of discrimination is not acceptable and laws such as the FHA will continue to be enforced until the day comes when discrimination in the housing arena has been abolished, a lofty goal but well worth the effort.

To learn more about the relevance of the 50 anniversary of the Fair Housing Act and why landlords and property managers should take this time to review their current tenant selection policies and procedures as well as point out discrimination in the housing market that still exists read recent TenantScreeningUSA.com press release:  April Marks 50 Years of Fair Housing Act & Should Remind Landlords to Remain Compliant, Opines TenantScreeningUSA.com

All over the United States the demand for single family housing has quickly become a rental boom.  Cities large and small across the country have not been able to keep up with the demand for rental units.  The demand is so high that properties large and small often have a waiting list for available units.  Securing a rental unit or apartment has become increasingly competitive which means rental prices are on the rise.

As single family dwellings become increasingly expensive and as the latest generation of college graduates become more transient in lifestyle choices, the availability and the cost of housing has become problematic.

Additionally as more and more people are priced out of home ownership or choose not to own a home, renting has become an even greater challenge.  Apartment unit prices are climbing as availability shrinks.  In order to get the very best tenant a landlord really needs to work with a well-qualified professional tenant screening agency to conduct tenant checks on their potential new tenants.  With larger pools of applicants applying for the same rental unit a landlord needs to make sure the tenant selection policy they have in place is both legally compliant and fair.

Tenant Screening is one of the key elements of the rental process and one of the most important.

A tenant background check goes a long way in verifying the information an applicant provides to the landlord.  A best practice is to confirm that information through tenant screening.

Tenant screening or, more commonly, tenant check provides a landlord and/or property manager with valuable information that allows the best decision to be made for an available property.

From Forbes.com, discussing the need for a “formal tenant screening report” (Mar 08, 18):

This report should include a credit report, a criminal background check (in locations where this is legal) and an eviction report. This formal report can help you determine if a renter meets your criteria and will alert you to a history of evictions.  www.forbes.com/sites/forbesrealestatecouncil/2018/03/08/how-to-screen-potential-tenants-and-save-thousands/3/#4a3c31c7a8da

As stated in RealtyBizNews.com defining why a tenant check should be conducted (Feb 22, 18):A tenant background check is important for the following reasons:

• To find out if they have a criminal record
• To choose the best tenants from your pool
• To check their work history
• To make sure that they will comply with your rules
• To confirm your tenant’s rental history
• To know which questions to ask during screening
• To confirm their identity  realtybiznews.com/traits-to-look-for-in-a-potential-tenant/98747118/

There are any number of reports used in tenant screening:

1. Consumer Credit report – Verify an applicant’s ability to fulfill financial obligations of a rental agreement.
2. Eviction Report – Draw upon past history of a tenant’s ability to stay in a unit without formal cause for discharge or eviction.
3. Sex Offender Registry Review – Insure the safety of existing tenants.
4. Social Security Number Trace – Can advise previous counties of residence as well as confirm name.
5. Criminal History Records – Drawn from the County Courthouse, this document can be the most accurate and current piece of information regarding an individual’s criminal past.

The temptation for a landlord in a time of plenty may be to overlook certain aspects of the renting procedure, primarily to skip attaining some tenant background reports like criminal history or eviction checks and instead just make their decision based on income and work history and just pick the tenant with the highest income or some other qualification.

A landlord can be very picky if the applicant pool is large enough, but still must be careful that their tenant selection process is legally compliant and fair to all applicants.  Despite the size of the applicant pool the criteria used for screening new potential applicants must be consistent or could lead to legal and financial disaster especially if a Fair Housing Lawsuit is put against the landlord for inconsistencies in the tenant selection process.

Having an inconsistent resident selection process or picking new tenants based on gut feelings or other unfair methods would be a big mistake and that is why it is still a best practice for landlords, property managers and even owners (regardless of property size) to work with a well-qualified professional tenant screening agency.  This way the landlord not only gets the information required to make a solid decision but can also avoid applicant discrimination and can ensure they remain compliant with all relevant laws.

To learn more about the current rental boom in the USA and how proper tenant screening policies and procedures can help landlords pick the best available new tenants while also mitigating financial and legal risks by employing a professional tenant screening agency for their background reports read recent TenantScreeningUSA.com press release:  Best Practice in Tenant Screening

Recent events involving evictions showcase there misuse and how this can affect tenants.  Eviction rules can be used unjustly while proper tenant screening efforts at the beginning of a landlord/tenant relationship can prove mutually beneficial.  Evictions are increasing across the United States for a variety of reasons the most prevalent being caused by higher rents and job loss.  And, subsequently, evictions can create considerable stress on families, causing disruption of routine, lifestyle, and education.

In New York, as well as across the country, tenants can get evicted for calling on police for assistance.

From the ACLU webpage (Jan 23, 18):

The second time that Laurie Grape called the police during an attack by her then-boyfriend, they told her that a third call would get her evicted. Under a local law in East Rochester, New York, three police responses to the same property within a 12-month period were once grounds for a person to be kicked out of her home. The next time her ex-boyfriend attacked her, Laurie decided to stay silent rather than risk eviction.  aclu.org/blog/womens-rights/violence-against-women/tenants-can-get-evicted-calling-police-across-new-york-and

While it is incumbent on landlord or property manager to work with a well-qualified third-party tenant screening agency in order to remain compliant with existing law, the reasons for an eviction should be taken into consideration as well.

Eviction reports are a critical tool in the vetting process but understanding the reason for such an eviction may be of benefit for the landlord.

There are instances when such a law may actually cause more harm than good.

Again, the ACLU webpage (Jan 23, 18):

When tenants are told that calling the police could result in their eviction, they stop reporting crimes or dangerous conditions, making police officers’ jobs more difficult. And nuisance ordinances are not tailored to prevent crime because they often punish landlords and tenants regardless of whether a given crime was committed by someone connected to the property where it took place.  aclu.org (ibid)

Another reason for eviction is a tax lien.  And it may not be the fault of the tenant.  When a landlord or property owner falls behind on paying for property taxes, or water/sewer bills, properties may be foreclosed on and, subsequently, property sold.  And the renters potentially face eviction.

From the New England Center for Investigative Reporting (Jan 23, 18):

The New England Center for Investigative Reporting, uncovered dozens of eviction cases across the state in the aftermath of tax lien foreclosures.  necir.org/2018/01/23/renters-face-eviction-wake-tax-lien-foreclosures/

Evictions also take a personal toll.

A woman and her family in Kansas City were evicted from public housing due to delinquent utility payments.

From FlatlandKC.org (Jan 29, 18):

… fell behind on payments, and the gas was shut off to her government-subsidized apartment in Kansas City. That violated a Kansas City Housing Authority rule and caused her to lose her rent voucher. Her landlord went to court to have her removed.  flatlandkc.org/public-works/level-foundation/reporting/education-evictions-kansas-city/

The loss of housing forced her children out of school, thereby disrupting their lives and educational progress.

Evictions can be harsh, but understanding the reason for eviction could be valuable to a landlord or property manager.  Knowing an applicant’s entire background through application, interview, and tenant check will allow a landlord to make a wise decision that will potentially have long-term benefits reducing the risk for eviction.

Ultimately a best practice for landlords and property managers is to work with a well-qualified tenant screening agency.  Evictions happen and it is incumbent on a landlord to understand the circumstances of that eviction.  A tenant screening agency can assist with tenant background checks and maintaining compliance with all laws governing tenant screening.

To learn more about the rise of evictions in the USA and how these evictions come to be along with their impact on both tenant and landlord read recent TenantScreeningUSA.com press release:  Tenant Screening and Evictions: Recent Events

The new HUD administration lead by Ben Carson is delaying an Obama Era anti-segregation measure known as the AFFH rule (Affirmatively Furthering Fair Housing rule).  Change is constant and the heart of this new ideology is an attempt to move away from using disparate impact as a legal theory to prove discrimination.  The disparate impact theory can demonstrate discriminatory policies in the aggregate even though the policies themselves may not facially discriminate or have discriminatory intent but nonetheless disproportionally negatively affect specific classes of people such as African-Americans and Hispanic groups.

Disparate impact is a legal theory that HUD has used in an attempt to successfully implement all aspects of the Fair Housing Act (FHA) of 1968.  However the current administration is attempting to pull back the use of disparate impact theory as a legal enforcement tool.

From Curbed.com (Jan 05, 18):

Fresh off a failed attempt to delay a rule designed to give Section 8 housing voucher recipients more choice in where to live, Ben Carson and the U.S. Department of Housing and Urban Development (HUD) announced Friday that it’s delaying another Obama-era anti-segregation measure: the Affirmatively Furthering Fair Housing (AFFH) rule.

The AFFH rule, established in 2015, aims to realize aspects of the Fair Housing Act (FHA) of 1968 that never came to be. The FHA barred racial discrimination in housing, but not until a 2015 U.S. Supreme Court ruling did the ban include “disparate impact”: policies that are discriminatory without necessarily stating racial discrimination as an intent.  curbed.com/2018/1/5/16854218/hud-fair-housing-delay-obama

Attempts have been made over the years to legally and socially desegregate housing.  During the previous administration HUD utilized the legal theory of disparate impact, a theory suggesting defacto segregation may exist in housing and landlords may preclude certain classes, specifically African-American and Hispanic groups, from fair and equal housing opportunity.

From legaldictionary.net (no date given)

Disparate impact concerns policies and procedures – in employment, housing, education, and other issues – which are not necessarily meant to be discriminatory, but which end up ultimately having an “adverse effect” on a particular class of people, based on such traits as their race, color, or religion.  legaldictionary.net/disparate-impact/

As administrations change so too does the direction policy may take.  Change is especially true with a shift in political ideology.  Leadership at HUD has changed course and is potentially moving away from the use of disparate impact as a legal course of action.

Under new guidance from HUD the AFFH rule will be delayed in implementation.

Ultimately landlords and property managers should be aware of what is changing with the Department of Housing and Urban Development as it could eventually affect non-governmental entities and, subsequently, tenant screening.

Tenant screening is a critical tool utilized by landlords and property managers to vet rental applicants.

Recently politicians cite inconsistencies between Supreme Court findings and disparate impact and have pushed HUD toward recent changes.

From BankingJournal.aba.com (Nov. 15, 18):

The Department of Housing and Urban Development’s rule implementing the Fair Housing Act discriminatory effects standard is inconsistent with current Supreme Court precedents on disparate impact theory and could be negatively affecting HUD’s housing goals, a group of House Republicans said in a letter to HUD Secretary Ben Carson today.

“Local governments, commercial and residential lenders, issuers, developers, and other mortgage industry service providers are less inclined to participate in housing projects because HUD’s disparate impact rule does not comply with the Supreme Court’s rulings,” the lawmakers wrote. “This inconsistency will reduce housing production, which in turn will increase housing expenses for many Americans, including those who can least afford it.”  bankingjournal.aba.com/2017/11/gop-lawmakers-huds-disparate-impact-rule-inconsistent-with-supreme-court-precedent/

With new administrations and new court rulings it is clear that change is constant.  Whether it is a change in policy or in governance ideology change will occur.  In these times it is always a best practice for landlords and property managers to work with a well-qualified third-party tenant screening agency to help assist with any new laws or potential changes in law that could affect tenant screening policies and procedures.

To learn more about changes with HUD policy and why they are potentially moving away from disparate impact as a legal course of action and what this means to landlords and property managers read recent TenantScreeningUSA.com press release:  HUD Continues to Make Changes Affecting Housing; “Change is Constant,” Opines TenantScreeningUSA.com

In a rental world where public records and other information are used to approve potential tenants or evict them, it can be devastating for this information and/or reports to be wrong or inaccurate.  Also bad luck doesn’t help either.  Either way evictions happen every day to thousands of people across the country.  There are a variety of reasons for evictions, some good and some questionable, but they happen nonetheless.  Landlords and/or property managers utilize eviction reports as a key tool in the tenant screening vetting process.

No one wants an eviction.  For landlords they can be costly and take months, even years, to finalize.  And for tenants eviction is a black mark on their rental history, one that may make it difficult to find another rental unit.

Evictions can occur for a variety of reasons.

In Hendricks County, Indiana a woman almost lost her apartment due to a stolen check.

From theIndyChannel.com (Dec. 05, 17):

A Hendricks County woman said a stolen rent check almost caused her to be evicted from her apartment.

Elizabeth McKee says she’s lived at the Bradford Park Apartments for three years and has always paid her rent on time.  theindychannel.com/news/local-news/hendricks-county/woman-says-she-was-nearly-evicted-after-someone-stole-her-rent-check-from-apartments-dropbox

A few days later McKee received notice of non-payment and was told the eviction process would begin if rent did not get paid by the 10th of the month.  Eventually the rental company realized that other checks appeared to have been stolen and put off eviction pending second payment.

In Las Vegas a family was evicted due to a faulty tenant background check that utilized a criminal history report.  Upon review, and after the eviction, it was discovered that the criminal report did not include any felonies, but only minor violations that had been dismissed years prior. The family has the option of filing a complaint with HUD, but does have to find other housing arrangement.  ktnv.com/news/make-a-wish-family-forced-out-of-home

From KTNV.com (Nov. 21, 17):

The U.S. Department of Housing and Urban Development sets guidelines when it comes to housing providers using criminal records. A memo issued in 2016 states, “Policies that exclude persons based on criminal history must be tailored to serve the housing provider’s substantial, legitimate, nondiscriminatory interest and take into consideration such factors as the type of the crime and the length of the time since conviction. Where a policy or practice excludes individuals with only certain types of convictions, a housing provider will still bear the burden of proving that any discriminatory effect caused by such policy or practice is justified. Such a determination must be made on a case-by-case basis.”  ktnv.com/news/make-a-wish-family-forced-out-of-home

It is unfortunate when a family is evicted due to poor tenant screening, but it does highlight the need for landlords and/or property managers to work with a well-qualified tenant screening agency in order to provide legally compliant tenant checks.

Often time’s evictions are utilized to clear challenging tenants, those not necessarily complying with the rules.

A property in Zanesville, Ohio received an abatement warning and the landlord began to take steps to clean up the property through the eviction process.

From ZanesvilleTimesRecorder.com (Nov. 08, 17):

Following an abatement warning, the owner of an apartment complex located at 1252 Edwards Lane issued residents a zero tolerance notice for illegal activity and nearly doubled the rent.  zanesvilletimesrecorder.com/story/news/2017/11/08/landlord-doubles-rent-evicts-nuisance-tenants-improve-property/844579001/

By increasing the rent some nuisance tenants could not pay and were either evicted or moved.

Policies need to be the same for all tenants.  Everyone must be treated fairly and in an equal manner otherwise legal problems could arise should a tenant be singled out and treated separately.  A best practice remains that landlords and property managers should work with a well-qualified tenant screening agency.

To learn more about how near miss evictions and actual evictions could have and did devastate some renters due to poor information or bad tenant background checks and how using a professional tenant screening company can help resolve this issue as well as being compliant with HUD guidelines read recent TenantScreeningUSA.com press release:  Near Miss Evictions Due to Bad Luck, Bad Information, and Bad Tenant Checks

San Francisco and San Jose have the lowest eviction rates in the country according to a recent study.  This news sparks attention to the eviction process, the use of eviction checks in the tenant screening arena and the overall lawful use of evictions in America.

Whenever the topic of evictions make headlines landlords and property managers should be reminded to make sure their tenant screening policies are current with existing law and understand that working with a well-qualified third-party tenant screening company continues to be a best practice.  Additionally landlords need to be careful about how they go about the eviction process when they want to evict a tenant.  Landlords must understand how new laws affecting the process of evicting a tenant works and must conduct the procedure according to the new rules.

San Francisco and San Jose sit atop of a recent study investigating eviction rates as the lowest nationally, highlighting evictions once again in national news outlets.  Each time the topic of evictions makes its way into the news landlords and property managers, knowing that eviction checks are a critical part of a thorough tenant background check, should review current policies with a third-party tenant screening agency to ensure compliance with law.

While San Francisco and San Jose evictions are currently down this had not always been the case.  Prior to a recent revision to existing law, Eviction Protection 2.0, evictions ran rampant.

From the San Francisco Examiner (SFExaminer.com; Nov. 05, 17):

Between October 2013 and September 2015, there were 4,304 evictions filed with the Rent Board, 2,200 of which were nuisance- or roommate-related. After Eviction Protections 2.0 passed, total evictions have dropped to 4,102 filed evictions between October 2015 and September 2017.  sfexaminer.com/tenants-find-stability-eviction-protections-2-0/

In reaction to the climb in evictions revisions were made to existing law.

Again, from the San Francisco Examiner (SFExaminer.com; Nov. 05, 17):

What has happened, say tenant advocates, is a handy suite of protections passed in 2015 are kicking in. Eviction Protections 2.0, the wonky rewrite of San Francisco’s rent-control law, is working.

“Stronger rent projections led to an immediate drop in these kinds of evictions,” said Gen Fujioka, of the Chinatown Community Development Center, a nonprofit housing group.

So-called “nuisance” evictions — attributed to actionable offenses hanging laundry outside the window or leaving shoes in the hallway — and evictions for breach of lease when bringing in new roommates are measurably down from two years ago.  ibid

Evictions have been a challenge in San Francisco and San Jose for several years due, in part, to some landlords wanting to gain higher paying tenants and utilizing potentially extralegal means.

With revisions in place evictions decreased, as details from a recent study have shown.

From SF.Curbed.com (Oct. 27, 17):

Rental site ApartmentList released a study Thursday breaking down eviction data in major metros across the U.S. and came up with some good, albeit startling, news for the Bay Area: San Jose and San Francisco had the lowest and second-lowest eviction rates nationwide, respectively.  sf.curbed.com/2017/10/27/16557562/san-francisco-san-jose-owest-eviction-rate-study

Evictions will remain an important factor in vetting new tenant applications.  Revisions in law in San Francisco and San Jose metropolitan areas led to a decrease in overall evictions.  Subsequently, landlords and property managers should take note that new laws and revision to existing law will continue to affect tenant screening.  A best practice remains to work with a well-qualified tenant screening agency in order to stay current with existing law.

To learn more about how San Francisco and San Jose attained the lowest eviction rates in the country and how revisions in law can lead to a decrease in overall evictions in the USA read recent TenantScreeningUSA.com press release:  http://tenantscreeningusa.com/tenant-screening-news/study-notes-san-francisco-san-jose-with-lowest-eviction-rates-in-us/

Tenants face discrimination due to criminal pasts and/or Section 8 housing vouchers.  Seattle and Berkeley are two example cities fighting back against growing discrimination in the housing industry.  The Fair Chance Housing bill sponsored by Mayor Ed Murray of Seattle would prohibit landlords in the applicant screening process to look at conviction records that are over 2 years old.
Discrimination is a challenge faced by people with recent criminal pasts as well as those that require Section 8 housing.  Two cities, Berkeley and Seattle, are looking to enact legislation to alleviate discrimination in housing and these actions point to an urgent need for landlords to work with well-qualified third-party tenant screening agencies in order to remain compliant with existing and potential change in law.

Seattle Mayor Ed Murray is working with a task force to create a bill to prohibit landlords from automatically rejecting individuals with criminal histories.

From SeattleWeekly.com (Aug. 03, 17):

Sponsored by Mayor Ed Murray and the product of one of his ubiquitous task forces, the Fair Chance Housing bill would prohibit landlords from automatically rejecting anyone with a criminal record in advertisements. Also, when screening applications, landlords could only look at convictions on an applicant’s record in the past two years. The bill follows the trajectory set by a 2013 ordinance which similarly prohibits discrimination against former prisoners applying for employment.  seattleweekly.com/news/should-landlords-be-allowed-to-discriminate-against-former-prisoners/

The Seattle bill has lofty goals but should remind landlords and property managers that it is always a best practice to work with a third-party tenant screening agency to maintain compliance with existing and potential changes in law.

Changes in employment screening law has hit the country hard over the past several years with ban-the-box legislation and the enforcement of the EEOC and these kinds of changes are now hitting tenant screening.

Berkeley is attempting to reduce discrimination in housing regarding Section Eight renters.

From the Mercury News (mercurynews.com; Aug 03, 17):

…the city council took preliminary action to prohibit landlords and rental agents from refusing to rent to someone based on their source of income. Elected officials and tenant rights advocates said their goal was to help more people on a federal subsidy program for low income and disabled people to find housing. If the ordinance is approved on a final vote Sept. 12th, Berkeley would become the first East Bay city to pass such a law.  mercurynews.com/2017/07/31/berkeley-makes-move-to-ban-discrimination-against-low-income-renters/

Creating a fully-comprehensive tenant background check protocol is a critical challenge to landlords, but actions in Seattle and Berkeley point to the rapid change in law.

Changes in law could also carry potential financial penalty.

From the Mercury News (mercurynews.com; Aug 03, 17):

Under the law, landlords could not refuse to rent to a person solely because they are on housing assistance or give preference to someone whose entire income is earned from a job as opposed to receiving a government subsidy. Violating the ordinance carries a potential fine of up to $1,000 and or jail time for up to six months. A tenant is also entitled to receive up to $400 in damages in addition to fees charged by attorneys.  Ibid…

Working with a professional third-party tenant screening agency is key to a landlord’s success in staying compliant with existing law and in staying ahead of potential change in law, as well as avoiding the risk of penalty.

To learn more about tenant discrimination and what cities like Seattle and Berkeley are doing about it read recent TenantScreeningUSA.com press release: http://tenantscreeningusa.com/tenant-screening-news/tenants-face-discrimination-in-renting-cities-fight-back-a-continuing-evolution-in-tenant-screening-states-tenantscreeningusa-com/

Summer is in full swing and many recent high school graduates are making plans or already have made plans to attend a College or University in September.  One huge piece to this process is securing housing situations if they will not be living at home.  The process of going to college full-time can be overwhelming. Finalizing financial aid, finding the right classes, enrolling in the right classes and of course having a place to live.

With student rentals on the rise so is the potential for additional revenue for landlords and even the college student parents.  It may make more fiscal sense to buy a property near the college that their children will attend as this may be a more cost effective strategy.  Of course though, when renting to college student that may sublet part of their apartment to manage their own costs it still is a wise decision to run tenant background checks on all those that will be living in the apartment including those with sublet rooms.

Many students will have the luxury of living at home, commuting to school, and maintaining the semblance of a balanced life, but for others going to college represents leaving home and living far from the comforts of mom and dad’s house.

The prospect of renting to college students for landlords and property managers is increasingly bright.  And, in some cases, purchasing a home near a college may prove to be a bigger bargain for parents than paying rent.

From Zillow (Sep. 04, 14)

With the combination of high rates of affordability and rapidly rising rents, parents with kids just starting out in college may want to consider purchasing a property for the remainder of their 4-year stay rather than paying rent.

Zillow data shows that the demand for off-campus rental housing is rising, creating a large spike in rental prices that show no sign of slowing down. On the other hand, home values are still below their peak levels and mortgage rates remain low, making for great bargains for buyers who plan to own their home for at least three years.  zillow.com/blog/college-towns-breakeven-2014-159125/

Whether an incoming freshman lives at an existing property or one that is purchased, there may be the additional opportunity of sub-letting.  Other friends or classmates can fill the empty rooms and potentially provide additional income.

Regardless if a property is a single family dwelling or an apartment complex a sublet makes sense for a number of reasons.

From Rent.Uloop.com (Jul. 01, 17):

Allowing subletting will make your building more attractive for students. Knowing that they have the option to find someone to pay for the room when they are not there is a definite incentive to choose one building over another, and they will be more willing to keep their lease if they know they can get other people to contribute. Yet for you as the property owner, you now take the risk of allowing a student to be an intermediate between you and the subtenants.  rent.uloop.com/news/view.php/241475/Make-Subletting-a-Breeze-for-Your-Residents-Dos-and-Donts

Having a sublet of a property can provide continued occupancy, reduced maintenance costs, and ensured income.  But the key to a successful sublet is the same as any rental situation.  Every sublet renter must go through a thorough vetting process and tenant background check that includes a criminal background check and sex offender check, as well as sign a well-written rental agreement, one that meters out the exact demands and requirements of property management.

Ultimately a thorough tenant screening prior to renting will serve as a best practice for both primary renter and sub renter.  The same policy holds true for a home purchased in lieu of renting and extra rooms are rented out.  As long as the communication between renter and landlord remains open, the policies and requirements understood, and all promises fulfilled, the landlord/renter relationship should be very positive.

To learn more about college student rentals, subletting and why performing tenant background checks on both the student renter and the sublet tenant read recent TenantScreeningUSA.com press release:  http://tenantscreeningusa.com/tenant-screening-news/college-student-renters-subletting-and-the-happy-landlord/

With school out, longer days and better weather families go on vacation and these days they might be looking to make some extra cash on their vacant house while they are away. Additionally, in many parts of the United States families are taking much longer vacations, long enough to rent out their home. In order to save money or capitalize on a vacant property these families may turn to vacation rental properties.

Long-term vacation rentals offer a great many amenities that a standard hotel may not: A kitchen to prepare meals in, larger living space to spread out, and more bedrooms for the bigger families or those that invite friends along for the getaway. The affordability of a long-term vacation rental often outweighs daily maid service, an on-site pool, or room service.

Every year owners of vacation rental properties work tirelessly to attract long-term vacationers. The profit of a fully booked summer can pay an entire year’s property mortgage or, if the property is wholly owned, create significant profit.

But single family landlords must take the same care with long-term vacation rentals as they might with a traditional rental situation. Thorough tenant background checks should be standard.

It is important for a landlord to treat any landlord-tenant relationship in a similar manner. Even though a rental relationship that lasts only a month or two, and may be paid in full in advance, one should still take care to protect property.

A professional tenant background check offers three types of protections: Person, Property, and Perception.

Person: This protection is for neighbors or other tenants of a property. Running a criminal history check and sexual predator registry can afford a degree of security and peace of mind.

Property: Perhaps the most important protection for a vacation rental, protecting property from loss could be critical to a single unit landlord. Understanding the financial status of a rental could go a long way in protecting property, but a thorough tenant check, one that utilizes public records as well as a complete vetting interview provides a barrier to individuals with nefarious intent.

Perception: Not as important, perhaps, with vacation rentals, but protecting the perception of a given property goes a long way in ensuring the desirability of a property. No one wants to rent a property with horrible curb appeal or one that has a history of police calls and related challenges.

It is clear that the correct and proper use of public records combined with a thorough tenant vetting interview goes a long way in protecting a property and this holds true for vacation rentals as well.

A long-term vacation tenant check should include all the following:

• Consumer Credit Report – Verify financial capability to fulfill a tenant agreement
• Eviction Records – Verify any previous challenges a tenant may have had in a rental agreement
• Criminal History – Provide greater protection for neighbors and other tenants
• Sexual Predator Registry – Additional surety for neighbors and other tenants

Often time’s individuals with malicious intent drop out of the rental application process if they find out a landlord conducts a thorough background screening of all potential tenant applicants. Informing the potential vacation rental applicants about the thorough tenant screening process that will be utilized alone can act as a deterrent to nefarious vacation rental seekers. Knowing that credit checks and public record checks along with verifications and reference checks are to be conducted, those with something to hide will less likely proceed with the process for fear of certain background information being discovered.

Ultimately a best practice for landlords of long-term vacation rentals is to conduct a thorough tenant check through a professional third-party tenant screening company to protect person, property and perception.

To learn more about how to make extra money with vacation rentals and the proper background screening that should be involved prior to leasing read recent TenantScreeningUSA.com press release: http://tenantscreeningusa.com/tenant-screening-news/vacation-rental-background-screening-dont-miss-the-boat/

Rental markets across the country can have their ups and downs however in recent history it has been a boom for landlords.  In markets such as San Francisco, Los Angeles and Seattle landlords and property managers have realized huge success.  A recent survey further illustrates this trend.

As rental markets heat up landlords enjoy greater success which means more profits:

From REBusinessonline.com (May 02, 17):

Six in 10 apartment landlords say it is more profitable and attractive to be a landlord than it was five years ago, according to a new survey from TransUnion SmartMove, a tenant screening service for owners. The survey was conducted in March 2017 and included responses from 689 landlords across the country.

At the close of the first quarter of 2017, property owners indicated it was easier to find qualified renters and that resident turnover had declined compared with the same time last year.  rebusinessonline.com/low-turnover-higher-rental-prices-lead-to-attractive-apartment-market-for-landlords/

The key to this kind of success is finding qualified renters.  Which begs the question…  What is a qualified renter?

In a nutshell a qualified renter can be defined as one that can afford a property, shows the wherewithal to pay rent on time, and has had a successful rental career.  No late payments, no evictions, no apartment jumping.  A well-qualified candidate can also be a renter with a clear background record, great references and positive referrals.  The more of these attributes that get checked off means the more qualified the potential renter is.

Turning a qualified candidate into a long-term renter can be profitable for landlords, but the very reason qualified renters are paying higher rent is the same reason they may not be long term.  Cheaper apartments nearby could emerge or higher paying jobs could be cut leaving a renter unable to afford the high priced rent anymore.

It is also clear that the younger generation in the USA is more transient.  They tend to move around more and not spend money on a big investment such as a house or a car.  This would explain the increasing popularity of living in an urban city, close to work and entertainment and not restrictive on movement due to requiring a car.

Anyhow, it is obvious that at least for the near future rental markets remain bright for landlords.

Despite the abundance of rental candidates it is still just as important to conduct thorough tenant background checks on every candidate prior to signing a lease.  Even in boom time it remains just as critical to perform due diligence prior to renting to make sure you land the most qualified candidates for a rental property.  Landlords and property managers should always, at a minimum, review the credit report, criminal background report, and eviction report of their potential tenants before turning over the apartment.

Credit history is important to verify a candidate’s ability to fulfill the rental obligation.  Certainly a consumer credit report will provide the data a landlord needs to make a well informed decision, just as criminal records and eviction reports will further provide a better picture of the riskiness of a potential tenant.

It should be noted that some segments of the rental community now ban the question of criminal records as part of the application process.

In 2016 the Department of Housing and Urban Development as supported by the Fair Housing Act initiated certain bans of criminal history in public housing.

At the end of the day the search for qualified candidates is critical to the long-term health and fiscal viability of a rental property.  Additionally the apartment rental process needs to be conducted in a fair, legal, and lawful manner.  It is strongly recommended that property managers and landlords work with a professional third-party tenant screening company to get all the background reports they need and to assist them in remaining fully compliant with all applicable laws and rules governing the background screening industry.

To learn more about current rental markets in the USA and why it is a good time to be a landlord as well as why proper tenant screening is still important read recent TenantScreeningUSA.com press release:  http://tenantscreeningusa.com/uncategorized/recent-survey-show-rental-markets-remain-attractive-for-landlords/