Trying Times Due to COVID-19 Greatly Impacts Landlords and Tenants

COVID19 continues to spread across the world and the impact on renters and landlords is immediate and significant. Layoffs and loss of income continues to impact society as a whole and renters dramatically; and the subsequent impact on the ability to pay rent has greatly impacted landlords and property managers.

Loss of income due to COVID 19 will greatly effect both landlords and tenants. Civic leaders at all levels of society are struggling with the impact of COVID 19 on society as a whole as well as with renters who have faced sudden loss in income; and continue to scramble for ways to assist those in need.

Millions of people are finding themselves out of work due to COVID 19. As non-essential companies have been shut down workers lose jobs and income dries up. Without a steady income many people are struggling with rent and across the country civic leaders are attempting to assist those in need.

From JD Supra (Mar. 19, 2020):

Notably, other localities have suspended all evictions, including the cities of San Francisco and Seattle and states like New York. jdsupra.com/legalnews/covid-19-update-for-landlord-industry-78234/

Eviction pauses continue across the country.

From CNN.com (Mar. 16, 2020):

Under most of the suspensions, property owners can’t issue new eviction notices, and existing ones can’t be executed. Many courts, like in Chicago’s Cook County, have already shuttered for weeks, so eviction hearings have been paused, too.

Most of the suspensions last up to 30 days. Boston’s could last for as long as three months. cnn.com/2020/03/16/us/cities-suspend-evictions-coronavirus-trnd/index.html

Without question the COVID 19 outbreak has caused enormous challenges to daily routines. Work from home, no school, social distancing, and paying rent: all have an impact. And when a job is lost the challenge of paying rent becomes significant.

A best practice is to talk to your landlord or property manager about your inability to pay the rent and some landlords will work with you directly to come up with a temporary solution. This should be a first option.

As the COVID 19 crisis has affected nearly every single sector of the economy, with an impact not felt since World War II, landlords and property managers should be accommodating.

Tenants should talk to their landlords, especially now as relief benefits from the federal government may not kick in for a few weeks.

As the country continues to maneuver through the current COVID 19 crisis people will still need to rent properties and landlords will need to conduct tenant screening. And a best practice for landlords and/or property managers is to work with a well-qualified third-party tenant screening agency in order to remain in compliance with local, state, and federal changes in laws governing tenant screening as well as short-term executive orders.

To learn more about how COVID 19 has impacted the rental marketplace and what government entities are doing to help assist those in need read recent TenantScreeningUSA.com press release: COVID19 Creates Trying Times for Rentals and Landlords

New Potential Law in Idaho Could Expedite the Eviction Process, But Many Oppose it

2019 saw the State of Idaho attempting to introduce a new bill that would change how evictions are conducted, essentially speeding them up by combining the requirement of two lawsuits into a single lawsuit and substantially shortening the time for a tenant to react. The debate over HB138 continues and a recent op-ed in the Idaho Statesmen has reignited the conversation. Laws governing tenant screening, specifically the reports used as part of a tenant background check package, can change very quickly and a best practice remains to work with a well-qualified third-party tenant screening agency in order to remain fully compliant with existing and potential law.

HB 138 in Idaho remains contentious.

From the Idaho Statesmen opinion page on January 23, 2020:

Fair housing advocates are concerned that a bill that would have sped up the process for evictions in Idaho and narrowly failed in the House of Representatives last year will make a return this session.

The bill’s sponsors last year said it would have simplified the eviction process for landlords and added some new protections for renters.

Opponents of the bill, including the ACLU, see the legislation as simply giving landlords more leverage over renters in a state that some see as already one of the most landlord-friendly in the country. idahostatesman.com/opinion/from-the-opinion-editor/article239531633.html

With the rental values in Idaho spiking, especially around the Boise area, perception is that landlords are trying to evict lower value renters in order to obtain higher value renters. Some suggest that the new law may allow the opportunity for expedited evictions.

From the Idaho Statesmen from March 4, 2019:

The bill, HB 138, was introduced by the Idaho Apartment Association and would have changed the way landlords act against tenants who violate the terms of their lease or fail to pay rent. Current law forces a landlord to file two lawsuits to evict a tenant — one forcing the tenant to return the property to the landlord, the other to seek monetary damages.

The bill would have combined those lawsuits into one and reduce the maximum time for the eviction process to a month or less. Courts would be forced to schedule trials within 12 days. idahostatesman.com/news/politics-government/state-politics/article227098164.html

Idaho shouldn’t be making it easier to evict people right now

Preventing eviction may be more cost effective than actual eviction. According to the Idaho Statesmen Opinion piece from January 23, 2019:

Preventing homelessness costs on average about $800 per client, Rabe said, but once a family becomes homeless, it costs up to $10,000 to re-house them, and each person experiencing homelessness costs over $53,000 annually in supportive and emergency services. , according to a study by Boise State University researcher Vanessa Fry. So an $800 investment in prevention pays off. idahostatesman.com/opinion/from-the-opinion-editor/article239531633.html

Rental housing will continue to be a challenge and tenant screening will always be a part of that conversation. A best practice remains for landlord and property managers to work with a well-qualified third-party tenant screening agency, in order to remain fully compliant with new and existing laws.

To learn more about the proposed expedited eviction law in Idaho and whether or not this gives too much power to landlords and if such a law was enacted would it increase homelessness read recent TenantScreeningUSA.com press release: Potential Idaho Law Expediting Evictions Could Become a Test Case for Other Areas of the Country; Opines TenantScreeningUSA.com

Washington State Law in Housing May Lead to Concern and/or Confusion in Tenant Screening

Recent laws in Washington State regarding tenant screening may create concern for landlords and property managers as well as further confusion to the fair and lawful use of public records such as criminal background records as part of a tenant screening process. As cities and states wrestle with an on-going housing crisis, measures taken in an attempt to create easier entry to housing, especially for the poor and previously incarcerated, may create considerable challenges and concern for existing landlords.

Landlords and property managers in the state of Washington are facing increased challenges to tenant screening and the subsequent selection of tenants. Also, they face challenges in the ways to evict problem or bad tenants. Life has become more complicated for landlords and property managers in Washington.

From Fox News (foxbusiness.com; Dec 19, exact date not provided):

Most recently, the Supreme Court passed the city’s “First-in-Time” (FIT) ordinance in November, which requires landlords to approve the first qualified tenant who applies for a property.

FOX News correspondent Dan Springer said tenant groups say the FIT law will “level the playing field and wipe out property owners bias in the rental market” while landlords say the law “violates their century-old right to lease to the tenant of their choice.” The “Fair Chance Housing” ordinance, which prevents landlords from rejecting applicants based on criminal history, went into effect in February 2018 but is still in active litigation after facing legal challenges. foxbusiness.com/markets/washington-supreme-court-seattle-landlords

Whenever there are changes to law, new law, or challenges to law landlords and property managers need to take note and make sure current policies are compliant. Challenges to law, such as those in Washington State, can create an air of confusion. A best practice remains for landlords and property managers to work with a well-qualified third-party tenant screening agency.

While good intentions are certainly a part of the First in Time ordinance, the actual results may become a greater challenge for all involved.

As landlords continue to challenge laws such as First in Time, and the use of criminal history records, they should still remain diligent in compliance to existing law.

The eviction process in Washington State is under challenge as well.

From SeattleWeekly.com (Dec 8, 19):

Bills in the Washington State Legislature concerning “just cause” eviction were introduced during the 2019 session, but didn’t pass. John Stovall of the Washington Low Income Housing Alliance said the bills would likely either be re-introduced or that similar legislation will be filed during the 2020 session.

Just cause eviction laws mean landlords can’t serve tenants with 20-day no-cause eviction notices. Under current state law, landlords can evict monthly renters with one of these notices, leaving tenants with no legal recourse. Landlords are also not required to provide a reason for the evictions. seattleweekly.com/news/tenant-advocates-prepare-for-another-push-in-olympia/

Legislators and advocates are active in Washington and change is bound to come sooner than later. And with change comes confusion and, ultimately, working with a third-party tenant-screening agency remains a best practice in order to stay confusion free and compliant with law.

To learn more about the new Washington State law and how such changes to the way a landlord can go about the tenant selection process can cause confusion and why there is so much opposition to the new tenant screening laws including potential changes to the eviction process read recent TenantScreeningUSA.com press release: Challenging Housing Laws in Washington State Could Lead to Further Confusion in Tenant Screening

Seattle’s Tightly Regulated Landmark Tenant Screening Law Faces Challenges

The final outcome is still undecided as challenges face Seattle’s new landmark tenant screening law. Seattle’s recent tenant screening law, one that tightly regulates to whom a landlord and/or property manager can rent, has faced legal challenges and Washington’s State Supreme Court upheld key provisions of the law. Any legal or legislative activity that affects tenant screening should put landlords and/or property managers on notice to make sure their policies and procedures are legal and compliant; and a best practice remains to work with a highly qualified tenant screening agency.

Seattle’s tenant screening law, commonly referred to as “First-in-Line” has survived initial legal challenges. Seattle’s law could face numerous legal challenges which, subsequently, highlights the need for landlords and/or property managers to work with a well-qualified tenant screening agency.

Several years after the initial passage of Seattle’s “First-in-Time” law legal challenges continue to slow full implementation.

From Seattle.Curbed.com (Nov. 21, 19):

Three years after its initial passage, Seattle’s “first-in-time” law, which requires a landlord to accept the first qualified applicant to live in a rental property, has been upheld by the Washington State Supreme Court. The law had been overturned in late March by a lower court and was subsequently appealed by the city. seattle.curbed.com/2019/11/21/20967118/seattle-tenant-protections-first-in-time

The law was intended to eliminate bias in tenant screening and related housing.

From Seattle.Curbed.com (Nov. 21, 19):

The laws were the First in Time law, requiring landlords to rent a property to the first qualified applicant, and the Fair Chance Housing Ordinance, prohibiting landlords from looking into the criminal backgrounds of potential tenants. ibid

Landlords and property managers have begun to push back against this law, hence the recent court challenges, and are pushing hard to reverse the law entirely.

From MHPMag.com (Nov. 19, 19):

The property owners objected to these laws based on protections in the United States and Washington State constitutions against government takings of private property and for due process and free speech. Lower courts had found these arguments persuasive based on precedents established by earlier cases. A laymen’s reading of the decisions by the Washington State Supreme Court is that the justices decided that the lower courts erred by concluding that the Washington State Supreme Court had established protections that were broader than those found in the Federal Constitution. Also, the justices determined that recent rulings by the United States Supreme Court had effectively invalidated some of the precedents the lower courts had used as justification for their decisions. Therefore, they reversed the lower courts’ rulings. mhpmag.com/2019/11/setback-in-seattle/

Because of the humungous impact a law like this has on how the tenant selection process must work, landlords need to be cognizant of how they screen potential tenants in a way that does not break the law. This is why it is still a best practice for landlords and/or property managers to work with well-qualified third-party tenant screening agency, one that can assist in maintaining compliance with the law. This is especially true when new laws are introduced and challenged in court. Laws can change quickly and it’s best to be prepared and wise to pay attention to such court rulings.

To learn more about Seattle’s First in Time law and the Fair Chance Housing Ordinance and how these laws affect tenant screening policies and the overall tenant selection process along with how to stay compliant with such new laws read recent TenantScreeningUSA.com press release: Seattles Landmark Tenant Screening Law Faces Challenges

In this Complicated Time in the Rental Housing Industry New Landlords Need to Be Aware of Tenant Screening Laws

In the past few years the rental industry and the tenant selection process within that arena has seen humungous change that has complicated how landlords can go about leasing their available units. Parts of this process such as performing criminal background checks on potential tenants now has to be performed a certain way in certain jurisdictions within the USA. These laws are not always consistent from one location to another and this makes the apartment rental process much more confusing for landlords. However, it is even more complicated and daunting to people becoming new landlords.

Recent laws being enacted across the country sometimes place limits on how far back landlords can look into a potential new tenant’s criminal history and/or eviction record history. Some places in this county even have laws regarding leasing decisions based on bad/poor or no credit history. Now more than ever new landlords need to do their due diligence before starting the leasing process. A best strategy would be to utilize a third-party tenant screening agency to help assist in remaining compliant with all laws pertaining to the tenant selection process.

Many people now in certain situations are considering becoming landlords. For instance, when their kids leave the coop it may be time to downsize. But the best option may be to keep the house and rent it out. Or perhaps there is a nest egg to buy a small rental property, an investment to create additional income. Or, maybe, the apartment over the garage is finally cleaned out and ready for a renter.

So you want to be a landlord?

There are a number of things to take into consideration before becoming a landlord. There’s the expense in the original investment, maintenance of the property, and finding a renter.

And conducting a tenant background check.

Being a landlord is no simple task, one that requires patience and persistence. And an important part of being a landlord is fully vetting all tenants. A best practice for tenant screening is to work with a well-qualified third-party tenant screening agency to remain compliant with all law. And, keep in mind, laws can change frequently.

Additionally, screening a tenant helps protect property and the investment. Investing in a rental property is a big financial commitment and one does not want to threaten financial standing through a bad tenant.

From Bizrate.com (Oct 4, 19):

Being stuck with a bad tenant can not only disrupt your cash flow, but it’s also one of the reasons landlords fail.

“People don’t screen their tenants adequately. One bad renter can ruin you,” … This can be especially true depending on your state’s landlord-tenant laws. bankrate.com/real-estate/becoming-a-landlord-do-you-have-what-it-takes-to-manage-property-and-people/

Laws that govern tenant screening and reports utilized therein are often complicated and can change frequently. For a new landlord it can be overwhelming.

From Bizrate.com (Oct 4, 19):

It is important to “always know and understand your federal, state and local rental laws,” … “Many landlords learn the hard way that not being knowledgeable about the laws can end in costly lawsuits or lost rental income.”

The U.S Department of Housing and Urban Development (HUD) Fair Housing Act prohibits housing discrimination based on race, color, national origin, religion, sex, disability and familial status. In addition to federal discrimination laws, each state and city will have specific landlord-tenant laws and regulations.

“Knowing the law will help you stay in complete compliance with regard to safety issues,” … “Not knowing will not protect you from legal action.” Ibid.

Being a landlord can be very rewarding, as long as you have the tools to do it. Adding a tenant screening agency to your tool box is a best practice.

Because of the wide spread affordable housing crisis in many places in this country new landlords may want to build or buy apartments that are affordable to help curb homelessness and to quickly fill their units with tenants.

Working with a tenant screening agency is critical and well worth it. The cost of not being in compliance is far higher than a simple tenant check. Additionally the cost to perform a thorough tenant check is negligible compared to the monthly rental income profits.

To learn more about the pitfalls of becoming a landlord and why it is imperative that all landlords understand the laws regarding the tenant selection process and why partnering with a tenant screening agency can greatly assist in remaining compliant with those laws read recent TenantScreeningUSA.com press release: So You Want to be a Landlord?

Minneapolis Proposed Rule Changes Point to Continuing Challenge in Rental Housing

Affordable housing and the overall rental housing marketplace continues to face issues all over the USA. Across the nation challenges in rental housing continue to grow exponentially. Demand continues to grow and, subsequently, so does cost to rent; thereby forcing parts of the population to become a greater risk for homelessness.

As rental housing becomes increasingly scarce, the cost to rent increases in a typical supply and demand scenario, but the real challenge is that families are getting squeezed out of housing and options are becoming limited.

The ordinance in Minneapolis seeks to limit the use of criminal records history and evictions records. In theory it is thought this practice will allow more individuals access to housing.

From StarTribune.com (Aug 29, 19):

The Minneapolis City Council’s Housing Policy and Development Committee approved moving the ordinance to the full council after the three-hour public hearing. The full council is expected to take it up next month.

The ordinance would limit how far back landlords can consider an applicant’s criminal and eviction histories, cap security deposits and limit how credit scores are used.

The public hearing caps a bitter summer long standoff between tenants and landlords that has put Minneapolis’ struggle to solve — or at least curb — the city’s affordable-housing crisis on full display. startribune.com/minneapolis-tenants-landlords-square-off-over-limits-on-screening-tenants/558625472/

The proposal will certainly affect landlords.

From StarTribune.com (Aug 29, 19):

The proposed rule would mean landlords can’t deny an applicant on the basis of a misdemeanor if the case is three-plus years old and seven-plus years old for felonies, and in certain cases of arson, assault or robbery more than 10 years old. Council members are also aiming to curb the effect of eviction judgments by not allowing them to be considered if they are more than three years old. The ordinance would also limit how credit screenings are used, including preventing landlords from denying an applicant because of insufficient credit history. The proposed ordinance would also cap the amount landlords can charge for a security deposit at a month’s rent. ibid

Opponents let their opinions be known as well, citing that safety could be compromised and the true cause of the housing crisis, lack of affordable housing, has not been addressed.

From MinnPost.com (Aug 28, 19):

The Minnesota Multi Housing Association (MHA), which advocates on behalf of some 1,900 property owners, disagrees. At the hearing, members of the group reiterated their argument that the council has embarked on a misguided effort to increase renters’ access to housing — one that could have unintended consequences for the city’s rental market and tenants’ safety

— while doing nothing to get at the root cause of the issue: a lack of affordable housing. minnpost.com/metro/2019/08/minneapolis-holds-first-public-hearing-on-controversial-tenant-screening-proposals/

The decision in Minneapolis has not been finalized and there is another month before the final vote is taken. But with housing an issue across the country many municipalities may look to Minneapolis as the road map of managing housing challenges.

In the end a best practice remains that landlords and property managers should work with a well-qualified third-party tenant screening agency in order to stay compliant with existing law as well as potential law.

To learn more about how new ordinances like the one in Minneapolis; if it becomes law would affect landlords and the overall tenant screening process, especially how criminal background records and eviction records can be used read recent TenantScreeningUSA.com press release: Proposed Rule Change in Minneapolis Points to Challenge in Rental Housing

Identity Theft and Tenant Screening – Ongoing Challenges to the Rental Industry

Across the country identity theft continues to be an enormous challenge. Seemingly every day there is another announcement of a significant data breach, one that exposes millions of people to identity theft.

Recent data breaches include:

  • Capitol One – 100 million People
  • Equifax – 143 million People
  • Marriott – 383 million People cnet.com/how-to/its-not-just-equifax-heres-every-major-security-breach-and-data-hack-so-far/

The information gained and the results of a data breach varies, but the numbers involved should make everyone that exchanges data cautious.

Companies that use critical data such as social security numbers and consumer credit reports must provide the greatest security possible in order to protect data. It is not always easy, as seen with recent data breaches, but diligence and maintaining the most secure protocols goes a long way.

However, in Charlotte, North Carolina, one family experienced identity theft when an individual started renting apartments using stolen data.

From WSOCTV.com (Jul 11, 19):

One of the apartments in her name was at Somerstone Estates. The manager there told Channel 9 this looks like a subleasing scheme they’ve seen before, where someone rents an apartment with stolen information and then finds someone else to sublease it and pays them directly. wsoctv.com/news/-i-want-my-info-back-apartments-rented-out-by-identity-thieves/965192011

But identity theft can potentially take place from within.

In Salt Lake City a live-in maintenance worker went back to prison for a parole violation. In the course of searching her room officials discovered critical personal data of the residents. Access to this data was not part of the maintenance worker’s job description. sltrib.com/news/2019/04/11/salt-lake-city-apartment/

Renting a property is stressful for both parties. Landlords need to vet potential renters and verifying critical data such as consumer credit history and eviction records is an important part of the process. And for renters providing this data, there is always a concern about the security of information provided. Ultimately, using a hyper secure data portal for tenant screening such as modern tenant screening systems do may be the answer.

New Tenant Screening Services are now available online and go to great lengths to keep sensitive data and personally identifiable information secure and private.

Landlords – It’s most likely been a challenge to obtain the background information you need to get a more complete picture of your rental applicant-until now. Gain access to your potential tenant’s credit report, criminal report and a leasing recommendation without costly onsite inspections, monthly minimums or annual fees. Since the renter is part of the process, the renter consents to having his or her information viewed by the landlord or property manager.

Renters – For the first time in recent history rental applicants have some control over their sensitive, private data when it comes to background checks and applying to rent an apartment. Typically, the rental applicant gives their potential landlord their Social Security number (SSN) and other personally identifiable information (PII) as part of the leasing application process. But with modern online tenant screening systems the landlord no longer needs the SSN and other PII, and chances are, the landlords don’t want it so they can’t be responsible for any breach or misuse of such information. With modern online tenant screening systems, the rental applicant can verify their identity directly to the tenant screening agency without the landlord ever having access to it and then the tenant screening agency sends the landlord only the reports they need such as the credit report and criminal history report. Identifying information like social security number, birth date and account numbers are masked to protect the privacy of the renter.

When searching for a tenant screening agency always check to see how the process works and make sure the potential renter enters in their own sensitive information without the landlord having access to it. When the landlord emails the applicant a tenant screening request the rental applicant then fills in all their personal information and then the new tenant screening services run the necessary tenant background checks on the applicant including criminal background check, eviction record report, credit report and sometimes even a leasing recommendation. The landlord then receives all the background reports without ever seeing the personal information of the applicant. This new way of screening tenants is very secure and keeps personal information private making identify theft near impossible.

To learn more about how new online tenant screening systems using hyper secure data portals can protect sensitive data while also letting the renter directly enter their personally identifiable information to the tenant screening agency without the landlord seeing it and how this helps prevent identity theft read recent TenantScreeningUSA.com press release: Challenges in Renting: Identity Theft and Tenant Screening

New Legislation Affecting Tenant Screening Laws Should Alert Landlords

All over the USA there is new legislation looking to make significant changes to tenant screening laws and this should alert landlords and property managers to review existing tenant screening policies. It is also a time to consider working with a well-qualified tenant screening agency to help in remaining fully compliant with existing and new law. It is this halfway part of the year which oftentimes new laws get enacted and in 2019 this thought remains true; and should alert landlords and/or property managers to the urgency of remaining compliant with every changing law even if it is in a different State.

Housing continues to be a challenge across the country and as lawmakers take up the challenge of housing changes occur with laws governing tenant screening. This attempt to manage and control rental housing may lead to confusion over the legal and lawful use of tenant screening documents like eviction records and criminal background records. Subsequently, landlords should work with a professional tenant screening agency for assistance in maintaining compliance in their applicant selection vetting process.

In California State legislators continue to battle homelessness and affordable rental, two challenges that go hand in hand.

From the website of the Sacramento Bee, (Jul 01, 19):

One of the few remaining tenant protection measures still alive in the California Capitol became a two-for-one bill this weekend, after lawmakers amended rent cap legislation to include eviction restrictions.

The strengthened Assembly Bill 1482, which limits rent increases to no more than 7 percent plus inflation, now also prohibits owners from evicting residents under certain circumstances. sacbee.com/news/politics-government/capitol-alert/article232144507.html

Evictions have always been an important tool for landlords in managing their property. With changes to eviction laws, landlords must take greater care in managing their use of evictions.

In Washington DC lawmakers are taking a different direction in managing rental housing and ease of availability by changing law to allow for expungement of eviction records.

From DC.Curbed.com (Jun 28, 19):

That could change under legislation proposed this month by Ward 3 D.C. Councilmember Mary Cheh. As drafted, it would allow D.C. judges to seal or expunge eviction records in a number of circumstances, and it would also require them to seal all eviction records three years after an eviction proceeding is resolved in court. Cheh says the goal is to offer “long-needed relief to tenants” and help ensure that evicted renters can find affordable housing.

“An eviction is a permanent mark on a tenant’s record, harming one’s ability to find safe and secure housing,” she said during a June 18 D.C. Council meeting. “Eviction records can have devastating consequences for tenants. Landlords may charge a higher rent based upon the presumed risk posed by the tenant, or they may refuse to consider the tenant’s application outright.” The harms are acute for those who have experienced homelessness, Cheh added. dc.curbed.com/2019/6/28/19102673/evictions-housing-landlords-tenants-court-rent-displacement

Finally, and, perhaps, most importantly the State of New York has enacted a wide-range of laws governing tenant screening and housing. Just as changes in housing laws in Portland and Seattle can have broad reaching affects, changes to New York law can have a national impact as well.

From NewYorkTimes.com (Jun 21, 19):

Taken together, the new laws — on everything from evictions to security deposits to rent caps for residents of mobile homes — represent a significant power shift away from landlords and cement New York’s standing as a national leader of policies favorable to renters, of which there are 8.2 million statewide. nytimes.com/2019/06/21/nyregion/rent-laws-new-york.html

The citations herein are only the tip of the iceberg, regarding change to tenant screening laws, most specifically the use of eviction records. Although the use of tenant background checks will continue, how and when they are used is changing as laws change to help alleviate the affordable housing crisis and to help people with certain pasts be able to get safe and secure housing and to minimize homelessness as best as possible.

To learn more about the new legislation that will be affecting the tenant screening arena and why States and Cities are making new laws to reduce homelessness and to help increase affordable housing read recent TenantScreeningUSA.com press release: Changes in Tenant Screening Law Should Alert Landlords; Opines TenantScreeningUSA.com

Impending Changes to Tenant Screening Led by Minneapolis and Portland

Recent legislative efforts in Minneapolis and Portland to change tenant screening laws provides foreshadowing to potential change across the country.  With Portland aggressively moving to change tenant screening regulations, and Minneapolis not too far behind, landlords and property managers should be working with a well-qualified third-party tenant screening agency in order to remain fully compliant with new and existing law.

The cities of Portland and Minneapolis continue to lead the nation with potential changes to tenant screening and laws that govern the use of public records like criminal background records. This effort could easily lead to other similar changes across the nation. Any time there are potential significant changes to tenant screening laws and regulations landlords and property managers should take note; and when two large cities pursue similar legislative action around the same timeframe then reviewing current tenant selection polices can no longer be ignored by landlords anywhere.

Additionally several big cities and towns across the country face the continuing challenge of affordable housing, specifically with rental housing. Low cost housing is increasingly scarce and cities, such as Portland and Minneapolis, are looking for ways to allow tenants greater access to decent living situations. Subsequently, as these efforts arise landlords and property managers sometimes push back.

It is a current and ongoing challenge.

From the Minneapolis Star Tribune (May 31, 19):

Minneapolis City Council members are drafting a new ordinance that would limit how landlords use credit, eviction and criminal history to screen prospective tenants.

As city officials search for ways out of the affordable housing crisis, they are taking aim at a long-running point of contention in the housing debate: the tenant screening process. Housing advocates say the process does not give a full picture of an individual’s ability to be a good tenant.

But property owners say restricting their ability to screen tenants would prevent them from having enough information about potentially unsuitable applicants. startribune.com/minneapolis-considers-limiting-landlords-ability-to-screen-tenants/510644802/

Minneapolis is only the most recent city to review tenant screening policies as a means of easing challenges with housing, but as landlords and property managers know tenant screening can be an important tool in vetting potential tenants. If done fair and equal across all applicants, tenant screening can be successful in assisting landlords and property managers make a sound decision on candidates. If tenant screening and the applicant selection process is done correctly it removes the possibility of discrimination and injustice.

Efforts to change tenant screening policy continue unabated in Portland, Oregon.

An article in wweek.com (May 22, 19) discusses Portland’s on-going efforts:

“This proposal also helps reduce barriers to housing for a population that has faced unjust obstacles in our community for far too long – those who have been incarcerated,” they wrote. “This ordinance uses research-based criteria to identify low-risk characteristics that would help former offenders obtain housing and not be perpetually punished for long-past offenses. This would help reduce the cycle of incarceration and homelessness for many in our community and help get people back in stable housing and on their feet again.” wweek.com/news/city/2019/05/22/four-multnomah-county-commissioners-endorse-portlands-proposed-tenant-screening-and-security-deposit-ordinances/

At this point in time when larger cities, such as Minneapolis and Portland, work on reform on tenant screening policy and law in order to resolve an issue that has spread across the country, property managers and landlords should take note and take a hard look at their current tenant selection policies and make updates if necessary to remain compliant and ahead of the curve.

One approach that has been successful for many landlords and apartment managers is to work with a professional tenant screening agency, one that can provide the proper background reports at the proper time and to help aid in the creation or maintenance of sound tenant screening policy that can consistently avoid applicant discrimination and injustice.

To learn more about why cities like Minneapolis and Portland are looking into making changes to tenant screening laws and the overall tenant selection process and why this may help alleviate the affordable housing crisis read recent TenantScreeningUSA.com press release: Changes in Tenant Screening Law Should Alert Landlords; Opines TenantScreeningUSA.com

Even if You Are Just Renting Out a Room – Remember the Tenant Check

With the current rental housing shortage across the country people looking for a place to live are now considering renting out a room in a single family house or larger apartment.  Additionally people that own a house or large apartment are looking for extra income and are willing to share their living space for a price.  However, renting out a room in your living space can be problematic if you let a bad tenant in.  In this scenario (before renting out a room) it is even more critical to perform a thorough tenant background check on the person before letting them live with you…

Numerous communities across the country face a rental housing crisis, one that continues to boil.  Eventually it could become the “front and center” challenge that pushes politicians to make bold statements and complicated laws.  For now people are finding different means of rental housing.

Rental housing comes in a variety of forms and the most common type is an apartment.

Apartment living has become a very popular type of housing for millennials as they tend to be more transitory than previous generations.  Having lived through the Great Recession in the early 2000s has made them skittish about settling down and, further, they also have no fears in traveling around the country in search of the perfect job.

Moreover, the ability to move around the country and working high paying jobs has allowed millennials, and others, to pay more for rental housing.  Additionally, they have placed greater demands on amenities, such as roof top pools, concierge services, and on-site gyms, and they are willing to pay for it.

The option of paying more for a smaller apartment is not for everyone and one of the options might be renting out a room in a single family dwelling or larger apartment. As generations grow older, kids grow up and move away, downsizing from a house that is paid for might not be the next step.  Renting out a room may be a good way to earn additional income.  And, in other cases, having someone to share the rent is not a bad thing.

The truth is that renting out a room should be handled in the same way as renting out an entire property.  Applicants should go through a thorough vetting process, one that includes a complete tenant check.

From a recent article posted to WTOP.com (Apr. 25, 19):

It isn’t enough for a tenant to look good on paper. “Tenant screening for live-ins is critical,” says Glenn Carter, the chief editor of Condo.Capital, an Ottawa, Ontario-based digital content platform for condo buyers and real estate professionals. “I’ve heard so many horror stories of bad tenants making your life difficult by being messy, not respecting the space, being up all hours of the night and so on,” Carter says. He also suggests walking the prospective tenant back to his or her car “to see how tidy they keep it” to get a sense if the tenant is neat.  https://wtop.com/news/2019/04/considerations-when-renting-out-a-room/

Whether it is a room in a house, the spare room in an apartment, or the Mother-in-law apartment over the garage, a tenant check goes a long way in understanding and verifying the information provided on a tenant application.

Tenant reports often include (but are not limited too):

As with traditional apartment leasing it also remains a best practice for anyone wanting to rent out a room in their personal living space (especially to a stranger) to conduct a thorough interview and investigation.  A vetting process that consists of a complete tenant check which includes several background reports like criminal background checks and reference checks.

In the end tenant checks do not cost very much and the benefits far out way the price and the time it takes to verify all pertinent information.  A third-party tenant screening company that offers affordable, thorough, and secure background screening for landlords and property managers is always the best option, and they can also help keep you compliant with relevant laws concerning the tenant screening arena.

To learn more about why performing a thorough tenant check is so important before renting a room to a stranger and how sharing your living space could cause huge problems and headaches read recent TenantScreeningUSA.com press release:  Renting Out a Room? Don’t Forget the Tenant Check