This is an original and creative method of helping out tenant and landlords.  We have always stressed the importance of understanding the rental laws of your community, as well as State and Federal.   Jefferson Community is providing a great resource to their local community, and we hope more cities and towns follow their lead. 

They stressed in the article the importance of establishing a business relationship with your tenant/landlord, instead of seeking a friendship.  This is a business situation and “friendships” can feel betrayed by some factors that are out of your control as a landlord.  They recommend establishing the business relationship right away to avoid any awkwardness later.    

Source of Credit Reports
One of the ways of establishing that business connection is to begin with a formal tenant screening program.  The applicant is required to sign a release form, and will undergo a standardized background check based on your requirements, which may include a credit history report, eviction records, employment verification, as well a criminal record search. Obtaining credit reports on your potential tenants requires an initial site inspection of your office premises, to protect credit data against potential fraud.  You may be tempted to allow your tenants to bring in a downloaded version of a credit report.  While this is expedient, you are exposing yourself to potential modified documentation.  The power of Photoshop is hard to decipher.  We recommend you obtain credit reports using your tenant screening provider.

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Desperate Times
These are desperate times, and more than ever you need to start tapping into your a survivalist instinct.  Think of life as an episode of “Man vs. Wild”  But instead of wandering through a Siberian Forest, you are moving through your world on the brink of an apocalypse.  You can save yourself time and money by relearning street smarts.  The stories of older relatives who survived the depression are more relevant than ever.  Now is the time to think carefully about every financial relationship you build, which bank you decide to use, what landlord you want to rent from, want tenant you want to rent to, and the quality and reputation of every business relationship you cultivate.

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“They’re pulled their condos off the markets and they put them in the rental pool,  so now our rental pool is now saturated too”  

Act fast to take advantage of this rare combined effect of winter and housing slump and pick up that apartment you’ve always wanted.  There are attractive rental rates available as well as incentives to move; sometimes 1month or 2 months free. 

If you are looking to live a complex, duplex, or any sort of apartment living in close proximity to other tenants, make sure your landlord screens every tenant.  This usually includes a credit history report, income verification, and employment verification, but should also include a criminal history search.  You can learn a lot about your landlords’ property management style by how they treat you during the lease signing period.

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Tenant’s Liability

According the OC Register, some tenants believe that they don’t need renter’s insurance because they are covered by the building owner’s policy.  While the building owner’s policy covers the building, it doesn’t cover theft or kitchen fires.  Tenants are arguably liable for “any problem they create” such as a kitchen fire.  Even if your landlord doesn’t require renters insurance, it’s valuable for tenants the protect their property and the risk of a lawsuit with renter’s insurance.   Renter’s insurance should defend you should someone decide to sue you for slipping and falling inside your apartment or on your balcony.  Another little known detail is that renter’s insurance might be able to provide assistance should you be involved in a civil suit, similar to the protection provided by a home owner’s policy.   Talk to your insurance broker about the exact details of each policy.  

Landlords Benefits of Renter’s Insurance

Landlords who require renter’s insurance enjoy the benefits of having tenants who are protected, should a tenant-caused accident occur in the apartment, and it also provides a level of tenant screening, by screening out some tenants who are so strapped that they can’t afford to pay an additional  $15-20 per month.  If your tenants cannot afford this small amount, chances are they might not be able to pay the rent very soon.

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The article says that the city council is pondering whether to mandate other apartment complexes to pay for security measures, such as security cameras, security guards and better lighting.  They are wondering if legally, these apartment complexes pose an unacceptable risk to public safety.  It should be interesting to see how this legal issue plays out, especially since some property managers can be held liable if the crime is foreseeable.   The new mandate seems a touch heavy-handed and big government (will they be instituted for every apartment complex, or only larger, crime ridden ones?)  Is it open to manipulation and graft?   It’s worth pointing out that it appears Creative Management instituted this additional security policy and tenant screening program based on their own business strategy and not by government mandate, and now they are enjoying a better reputation, probably charging higher rents, probably seeing higher property values (in the long run) and receiving positive press and developing a excellent business image.  Hopefully the other apartment building owners will see these benefits and institute similar policies without government intrusion.

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Keep them renting or abandon the building
This bill addresses a larger strategic issue for urban planners, whether to keep foreclosed buildings with renters inside to maintain the value of the property, or evict them and have an abandoned building on the block, open to vandalism and abuse.

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North Adams Transcript has a full article about a horror story that occurred to one family :

“we all found out the house was in foreclosure and we were all being evicted”

At tenantchecker.com  we frequently talk about the need for landlords to screen their tenants; but perhaps tenants need to start thinking about doing some checking of their own.   Can you screen your landlord?  Part of this will include some common sense.  Inspect the building before you sign a lease.  Do you see any signs of problems.  It’s painfully obvious, but is there any foreclosure notes posted on property?  Ask around the neighborhood.   Ask the neighbors what they think.   Finally, you can conduct a landlord background check by running a Business Partner Owner Check.  These reports can tell you who owns the building, and possible liens and UCC violations that might have occurred.

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bad landlords

Under the program, police would provide background checks and recommendations on prospective tenants.

Hopefully this program will work to the benefit of the community. We are a little skeptical about the efficacy of the police running background checks giving recommendations on prospective tenants, not because they aren’t informed or effective, only that this is exactly the sort of labor intensive work that boggs down police departments and creates a huge backlog of background research for police officers and non-sworns to do.

To speed up your screening, we recommend you run county criminal records searches in all counties where your prospective tenant has resided. The searches take approximately 1 to 3 business days, depending on your area, and will provide you with a powerful history of your tenants criminal past.

Landlords who attended the meeting in Millsboro shared horror stories:

Ted LaMantia said he has multiple clients that owe him thousands of dollars, including one tenant who declared bankruptcy twice to avoid paying him $6,000 she owed.

Tenant Financial Responsibility
So your prospective tenant does not have a criminal history. Now what? Make sure they can pay you. Also run your tenant credit history and also check for previous evictions, and bankruptcies, liens and judgments. You should also verify their current ability to pay for verifying their employment, either through a pay stub or employment verification search.

Read the entire article here:

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Read the full article here

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Chicago Sun

Rental income can cover some or all of the mortgage payments, freeing you from having to dole out the entire amount each month. You might even make a profit if your monthly expense is low enough.

The problems arise from the human element of dealing with your tenants.  It’s best to learn the local laws regarding your rights and responsibilities.

Disputes with tenants over tenant rights and unpaid rent could require legal representation and legal fees. – State, local and federal statutes must be understood and followed, with failure to do so often resulting in fines.

Always establish and maintain lines of communication with your tenants, and make sure they understand the terms of the lease.  One of the best ways to protect yourself from problem tenants is to run background checks on them.   With a signed release, you can run your prospective tenant’s credit history, criminal history, and eviction records.  Most background checks for tenant screening are instant, but you can also conduct a more thorough review of county house records if you feel it is important.  The credit report will provide you with valuable information about your tenant’s financial responsibility.   

 
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