Friday, December 21, 2007

How To Screen Tenants (Part 3)

Tenant Screening Part 3

Managing tenants effectively builds our wealth and begins with screening tenants properly when they submit an application. Most landlords use applications for a fee. My objective here is to give you a smorgasbord of screening tips allowing you to select items of your choice to work into your system.

Application: first of all, make sure your application is proper and legal and does not violate any
fair housing laws or local laws. On the back, include a section with a few lines allowing the applicant a place to write comments. Also include a small section of text briefly detailing your qualifying standards and permission for the landlord to check all sources in evaluating their application for tenancy. Also include a phrase stating an “false or incomplete application” is a reason to be disqualified or not approved. Their signature line is below this small bit of text.

The first section on the application asks for their full real name, date of birth, social security number, and phone numbers to contact the applicant. Ask for several phone numbers – home, work, cell, pager, etc. After attending a class by an enforcement officer of the Equal Housing Commission, I learned to my surprise it is permissible to ask for “date of birth” for identification purposes; although you can not ask the applicant their age -baffling, but true.

Rental History: The next section deals with rental history for the last five years, including addresses, owner / manager contact information, and dates of residency along with reason(s) for moving.

Income: This next section demonstrates the applicant’s ability to afford and pay the rent. Information
about their employer, wages, and other source(s) of income are entered here.

Incidental but powerful information section falls below the income section. It includes “What kind of animals do you have?” Do NOT ask “Do you have pets?”. This phrase almost automatically implies the landlord does not accept animals and your applicant will almost always answer this question with a “No”. The first question implies it is okay to have animals.

“What is the name of your attorney?” Having this question on your application is powerful. Many leave it blank (which is great). Those who fill it in quickly might ring a bell with you. It might be one of those attorneys on TV advertising “Help me find somebody to sue”.

How many evictions have been filed on You? It seems like the applicant has trouble reading the question properly. Even when confronted with false information on the application, the Applicant who answered this question ZERO or None will respond “I have never been evicted!”. Fortunately, that is not the question. Read the question again, if you need to. Again, this question puts another bullet in your gun to protect you. Load up on some ammo.

Household composition is the next section. You can not use the word “family” or “children”. Think of those words as lighting fuses to cause you trouble. If you are doing it, STOP IT NOW. Substitute the phrase “How many people are in your household?” If they answer and respond about children and spouses, you are in good shape. They volunteered and offered the information. You did not ask it. Yes, it does seem a play on words; however, the fair housing shoppers (investigators) looking for landlords who violate the federal laws can call and record your phone conversation. Be aware.

Keep Cranking It 24-7!

Mike Butler

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