With a new administration in the White House and HUD’s new guidance in 2016 it is time for landlords and property managers to review their tenant screening policies especially the use of public records like criminal background checks. Taking the time to ensure that tenant screening practices are current and legally compliant during this new political landscape is paramount. It is a best practice in this process to utilize a third-party background screening company to help stay compliant and get access to the tenant background reports needed to maintain a sound tenant selection process.
In 2016 HUD released a new guidance on tenant screening practices that caused concern for landlords, property managers and property management companies in the multi-family industry.
From the website of the San Francisco Chronicle (SFChronicle.com; Apr. 08. 16):
Landlords who have a blanket ban on renting to people with criminal background records could be charged with violating the federal Fair Housing Act, under guidance issued last week by the U.S. Department of Housing and Urban Development.
However, a landlord who fails to screen prospective tenants for criminal records and rents to one who robs or hurts a neighbor could be sued by the victim.
That is the dilemma landlords now find themselves in as a result of HUD’s new guidance, which provides few specifics on how to comply. (1)
HUDs policy changes have caused and will continue to create considerable confusion for property managers and landlords. Subsequently, a best-practice, in order to maintain full compliance, is to work with a well-qualified third-party tenant screening company.
Despite these changes in the use of certain public records tenant screening still remains an essential process in the vetting of prospective tenants. In addition to finding out financial information such as credit score this process can also assist in the prevention of property loss or damage as well as harm to current residents. The information found in tenant background checks, combined with a thorough interview and reference checks aid landlords and property managers in the rental decision process while also weeding out prospective tenants that could pose a risk to the property and or other nearby residents.
Another change landlords and property managers should be prepared for is with the ascendancy of Donald Trump to President and the potentially radical change that could occur. Trump’s selection of Ben Carson as Secretary of HUD could bring around significant change as his views appear to be dramatically different that those of the previous administration.
From the website of the New York Times (NYTimes.com; Dec. 05, 16):
In an opinion article in 2015 for The Washington Times, Mr. Carson compared an Obama administration housing regulation to “the failure of school busing” because it would place affordable housing “primarily in wealthier neighborhoods with few current minority residents.”
The rule, known as Affirmatively Furthering Fair Housing, was years in the making and designed to end decades-old segregation by offering affluent areas incentives to build affordable housing. Critics, including Mr. Carson, called it government overreach. (2)
All tenant screening policies should be reviewed based on recent changes by HUD as well as the potential of change with a new administration. During this political period of potentially drastic changes to the apartment rental industry partnering with a third-party tenant screening company is the wisest approach and will help landlords and property managers remain well informed and compliant with all existing and potential legislative modifications.
To learn more about last year’s changes from HUD and what the new White House administration under Ben Carson illustrates as to potential drastic changes to the apartment rental industry, primarily the tenant screening process and how public records like criminal background records can be used in the vetting process read recent TenantScreeningUSA.com press release: http://tenantscreeningusa.com/tenant-screening-news/time-to-review-tenant-screening-policies-in-the-new-year/