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:
- Consumer Credit report – Verify an applicant’s ability to fulfill financial obligations of a rental agreement.
- Eviction Report – Draw upon past history of a tenant’s ability to stay in a unit without formal cause for discharge or eviction.
- Sex Offender Registry Review – Insure the safety of existing tenants.
- Social Security Number Trace – Can advise previous counties of residence as well as confirm name.
- 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