Tag Archives: tenant background checks

Tackling the Tenant Screening Background Blacklist With New Legislation

New York Times
By ELIZABETH A. HARRIS
Published: April 7, 2010

If you have ever been in housing court for an eviction proceeding — whether you withheld rent because of the hole in your ceiling or because of the ticket you bought to Maui — your name may be on a list that screening companies sell to landlords to help them spot potentially troublesome tenants.

Even if you won the case.

The list of those named in eviction filings has remained, by and large, relegated to the murky status of urban legend. But in February the City Council passed legislation, introduced by Councilman Daniel R. Garodnick, called the Tenant Fair Chance Act. It requires landlords, property managers and brokers to disclose which screening company, if any, they plan to use for these background checks.

Starting this summer, tenants will have the chance to order their files from the firms in question, and correct any inaccuracies.

“We began to hear from constituents throughout the city that they were getting rejected for apartments and they couldn’t figure out why,” said Christine C. Quinn, the City Council speaker. “They had an albatross around their necks, and they didn’t even know it.”

As soon as an eviction case is put on the calendar by a clerk or lawyer, New York’s housing court system sells the names of tenants to screening companies. The court has sold case information since 1990.

One pitfall for renters is that because the database is organized by name rather than, say,Social Security number, it is possible that someone with the same, or almost the same, name as a tenant-defendant could be included. But even if the information on the screening report is accurate, there is generally precious little of it. It will not say, for example, whether rent was withheld because the building was falling down, or whether the housing court found in a tenant’s favor.

Screening companies do not coordinate with one another, and there are more than 600 of them nationwide, so it is important to know where a landlord plans to look.

“We can’t stop the practice,” Ms. Quinn said, explaining that any decision to end the practice of selling this information would be made by the State Legislature. “But at least we’ve brought it out in the sunlight, and that’s always the best disinfectant. Tenants will have knowledge, and in these types of situations, knowledge is power.”

Louise Seeley, the executive director of the City-Wide Task Force on Housing Court, a nonprofit agency that helps people navigate the housing court system, said her organization received 5 to 10 calls a week from potential tenants whose names were on the list. Names are meant to be expunged after seven years, she said, but some companies are not careful about purging their records.

The prospect of being added to the list can have a chilling effect on tenants, advocates for renters said.

For the rest of this article please visit: http://tinyurl.com/tenant-screening-help
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In this economy you have to screen your tenants!

As everyone knows the economy is drastically effecting the economy and cash flow.  But now is not the time to cut back on costs associated with proper property mangement practices.  I like to think of my property mangement practicies like Goldlocks and the 3 Bears.

If your expectations are too high (too hot!) you may limit yourself from finding qualified tenants for a vacancy.

If your expectations are too low (too cold!) or vague you may find plenty of tenants but the quality of those tenants will most likely be poor.

If your expectations are reasonable (mmm…just right!) your property mangement practicies will assist in protecting your investment and keeping your cash flow, well, flowing.

One of these good property mangement practices is getting in the habit of doing a thorough background check on a prospective tenant.  Tenant screening background checks are important and the reports included in them can vary.  Generally a tenant screening background check or tenant screening report will consist of the prospective tenant’s credit report or credit history, rental history, and any criminal activity.

Right now many tenant screening providers provide 2 different options to access tenant screening credit reports.  The first option is to receive a rental recommendation based on the prospective tenant’s credit report.  The second is to make your own decision by examining the credit report yourself.

For the first option, a rental recommendation based on the prospective tenant’s credit report, is an extremely valuable and quick way to decide if a tenant is “move in ready”.  The tenant screening provider will run the credit report and provide you with an instant decision based on the applicant’s credit. 

The second option requires a onsite or physical inspection.  Its more work on your part and costs more money.  While it does allow you to make your own decision, I’m not convinced it’s all that necessary. 

When selecting a tenant screening provider make sure they have an assortment of reports to choose from, like:

  • A Credit Report Decision or Credit Report
  • Criminal History
  • Statewide Criminal History
  • Nationwide Criminal History
  • Countywide Criminal History
  • Telecheck – a great source to check if a tenant wrote a bad check
  • Sex Offender Searches
  • Eviction History – I almost forgot that one!  Checking the Eviction history of your tenant is very important!!!
  • SSN History – this will provide you with all addresses associated with the Social Security Number.  It can be really helpful with evaluating some of the reports above
  • Fraud Checks
  • and many more

In addition to running the above reports for a reputable tenant screening provider, you’ll also want to obtain documenation from the prospective tenant.  Not only are these documents great for the tenant screening process but they will help in the recovery your money should the tenant skip out owing you money!  So keep these in mind:

  • Driver’s License
  • Social Security Card
  • United States Passport
  • United States Birth Certificate
  • United States Military Identification Card
  • Certificate of Naturalization
  • Certificate of Citizenship
  • Permenant Resident Card
  • Foreign Passport with United States Visa and valid I-94 form
  • United States Military Discharge or Separation Documentation
  • Medical Insurance Identification Card
  • Marriage Certificates
  • Divorce Decrees
  • Concealed Weapons Permit
  • Employee Identification Badge (with photo!)

Important!  You should be viewing originals only!  Do not accept photocopies!  It’s bad enough fraudlent documents are created to trick a landlord but its even easier to create a photocopied one.  Only accept originals.

Thanks for listening!