As a manager for rental properties, finding reliable renters is crucial for your business success and reputation. Hence, it pays to be informed or refreshed on why you should perform a thorough background check.
Remember, don’t skip the processing of applicants to save time or because the person “appears” right or offers you a tempting “deal.” People with nothing to hide don’t mind adhering to Federal Fair Housing Guidelines, but those who are ready to scam you might. Watch for these typical red flags.
A poor credit history may be a blazing trail of potential problem tenant behavior. Unless you know of the tenant’s personal situation—such as a divorce—which has caused the applicant’s financial picture, you’d be wise to forego the deal right then. However, if the applicant’s minimum credit score falls within your parameters, and their situation warrants consideration (especially with a qualified co-signor), then forge ahead.
This is simple math. If the applicant’s income barely meets the monthly rental, chances are good they will default on rent. Income should exceed two-three times the cost of rent.
A job hopper indicates a troubling behavior pattern. Similar to one with a bad credit history, this individual is potentially high-risk.
People may try to hide prior evictions or bad landlord references. Are applicant’s smart enough to pull off this trick? Not typically. One manager called to check a reference for and found it was the applicant’s friend using a different phone number and fake accent. When desperate, people will try many schemes.
Check if deposits were returned from prior landlords, as the lack of one being returned could indicate a future problem tenant, one who is irresponsible in keeping the property in good condition.
Also, check how much notification was given before the tenant moved out. Not giving notice within contract guidelines says a lot about the applicant.
Few people request to pay deposits or rental fees by cash. Those who do could be hiding a criminal background or illicit activity. Money may talk at the onset, but there is no way to predict future problems with someone who requests to deal in cash.
This is an obvious one. If the IRS has difficulty collecting from tenant applicants, can you expect any less?
Don’t negate your instincts when it comes to screening for a tenant. If an applicant is giving you a definite bad vibe (needy, demanding, rude), don’t second guess yourself.
Otherwise, use a legal, professional agency such as Data Screening, to assist you with a thorough background check. Learn as much as you can to protect your clients and keep your mind at peace.
About DataScreeening.com
Data Screening is a Certified Women’s Business Enterprise that has offered business-to-business employment and tenant screenings to human resource professionals and business owners, including staffing companies, for two decades. Among other organizations, they are members of the New Jersey Staffing Alliance, the Society for Human Resource Management and the National Association of Professional Background Screeners. How may we help you today?
As a real estate office or property management firm, credit screening becomes essential for considering prospective mortgagees or tenants. Unless the applicant is purchasing the home as an investment with trust funds or as a cash transaction, details about financial history prove whether the potential buyer can likely be trusted with a mortgage, to make the commitment of continued payments over years to come.
However, some applicants have real trouble with revolving credit, and their credit report will show how well they handle this type of credit. If they have a healthy credit report, the chances are they will pay back the mortgage. If their credit report is questionable (borderline), then they may have to provide more information to convince the lender.
Both installment and revolving credit are paid back to the lender in lump sums.
Installment credit is paid in equal amounts per month on the total sum which is determined when the loan is approved. Also, the total of the loan remains the same until paid in full. Think of a car loan, and you will understand.
Revolving credit, though, is issued as a total amount, but how much is expended and paid per month is up to the borrower. As the borrower spends against the total, s/he makes payments, and the total available “renews.” Credit cards are an example of revolving credit. So is a HELOC (homeowner’s equity line of credit). For an equity line of credit, the applicant pays a “commitment fee” as well as interest expenses as long as the line is open or until the terms are fulfilled, and the loan is paid.
Of course, credit card debt is not the sole place a potential buyer can get in financial trouble, but it is often a deep pit. If the applicant is not careful, revolving credit can cause damage to a credit report, particularly if only a minimum amount is paid and the interest is accruing. And it can take years to eradicate the debt and rebuild good credit standing.
A firm such as Data Screening.com can provide accurate and current information on any applicant’s creditworthiness. Cash flow concerns will be evident as will a complete financial picture. Then a real estate office or property management firm can approach a rental decision with confidence.
About DataScreeening.com
Data Screening is a Certified Women’s Business Enterprise that has offered business-to-business employment and tenant screenings to human resource professionals and business owners, including staffing companies, for two decades. Among other organizations, they are members of the New Jersey Staffing Alliance, the Society for Human Resource Management and the National Association of Professional Background Screeners. How may we help you today?
The Commerce and Industry Association of New Jersey (CIANJ) and its partner, COMMERCE Magazine, welcomed business leaders recently to the 3rd Annual Best Practice Conference saluting leadership.
More than 150 executives participated in the conference which featured a keynote speech from Jonathan Gilliam, a national security expert and former U.S. Navy SEAL, who often appears as a CNN commentator. Best Practice Awards were also given to business leaders selected by a blue-ribbon panel of judges assembled by CIANJ. The association represents more 900 corporate members and works to advance free market principles.
Martin Kafafian, managing partner at the Beattie Padovano law firm, who chairs the CIANJ board of directors, opened the program. He said: “It makes so much sense to focus on best practice because they are at the core of what we do at Commerce and Industry Association. CIANJ is all about helping business grow and thrive. What better way to accomplish that, than to share best practices, the experience – the knowledge and lessons learned by running a business.”
As part of the salute to leadership, COMMERCE Magazine Editor Miles Epstein asked business executives to share thoughts on the subject for the magazine’s annual Best Practices Guide. This year’s edition contained advice from 100 chief-executive-officers, managing partners and business owners. The guides were distributed at the conference. They are also available online at http://www.cianj.org/commag/bestpractices2016/index.html
Fred Amicucci of Data Screening accepted the award on behalf of Karen Jacobsen. Jacobsen stated having open communication and understanding other people’s jobs within our organization is the foundation of the company.
Gilliam gave insights on leadership and shared many of his experiences as a Navy SEAL and former FBI agent with the conference goers yesterday at Nanina’s in the Park in Belleville. His remarks drew hearty applause from the crowd. He urged the business executives to motivate their teams. “Leaders are made, some are self-made. But many are taught by mentors. There’s no doubt in my mind that leaders are not born – it takes time to cultivate a leader.”
Many of the CEOs who wrote for the Best Practice Guide discussed their personal approaches to leadership and collaboration. The judges were asked to select the most clever, extraordinary and innovative entries to be honored at the conference.
CIANJ President John Galandak said this year’s judges included: Dennis Bone, head of the Feliciano Center for Entrepreneurship at Montclair State University; Rob Ffield, a former commander of the U.S. Navy Blue Angels flight squad; Bill Hanson, president of NAI James E. Hanson; Debbie Hart, president of BioNJ; Dean Paranicas, president and CEO of the Healthcare Institute of New Jersey; and Dean Siamack Shojai of the business school at William Paterson University.
The Best Practice award winners for 2016 included:
| BDO USA, LLP |
| Berkeley College |
| Data Screening |
| Deloitte & Touche LLP |
| Next Level Performance |
| Grant Thornton LLP |
| Hackensack Meridian Health |
| Hunter Group CPA LLC |
| Investors Bank |
| Jackson Lewis P.C. |
| JCP&L |
| Konica Minolta Business Solutions U.S.A., Inc. |
| Lakeland Bank |
| Levine Jacobs & Co., LLC |
| McCarter & English, LLP |
| Nanina’s in the Park |
| NJCPA |
| Peapack-Gladstone Bank |
| QualCare, Inc. |
| Ramapo College of New Jersey |
| Riker Danzig Scherer Hyland & Perretti LLP |
| ROYCE Leather Gifts |
| Sobel & Co. LLC |
| Springpoint Senior Living |
| Stockton University |
| The Valley Hospital and Valley Health System |
| Trinitas Regional Medical Center |
| WeiserMazars LLP |
| Wells Fargo & Co. |
| Whitestone Associates, Inc. |
| Whitman |
| WithumSmith+Brown, PC |
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A federal court judge in California ruled in favor of an employer, granting a motion to dismiss a suit challenging the forms used to conduct background checks on potential employees. A pair of former employees sued, arguing that the employer did not satisfy the requirements of either the federal Fair Credit Reporting Act (FCRA) or the state counterparts by providing an application form along with a consent and disclosure form permitting the company to perform a review of the applicants’ credit histories. The judge, however, threw out the claims, although with leave to amend the complaint. “The court is not aware of any authority supporting this contention that merely presenting these documents together violates the FCRA,” the court said. Background check procedures remain a popular source of litigation from both employees and regulators (such as the Equal Employment Opportunity Commission, which has brought multiple lawsuits challenging the use of background checks), and employers should ensure that they are following both state and federal requirements when conducting preemployment background checks of applicants.
Detailed discussion
During the hiring process, Kohl’s Department Stores provided two forms to applicants. One document was an “Employment Application” and the second was titled “Consent and Disclosure for Acquisition of Consumer Report(s).”
The Employment Application consisted of two pages seeking identifying information on the first page, as well as information pertaining to availability, employment history, and the position sought. The second page requested that the applicant disclose his or her criminal history, with a statement above the signature line that released Kohl’s from liability associated with the preemployment check.
The one-page Consent and Disclosure Form requested the applicant’s identifying information and disclosed that Kohl’s would use a consumer reporting agency to obtain consumer reports on the applicant that would contain personal information such as criminal history, drug offenses and sex offender status. The form also provided the name and contact information for the consumer reporting agency, the method by which the applicant could dispute the report, and that Kohl’s might use the information gathered to make a hiring decision. Applicants were required to sign the form at the bottom.
Two former Kohl’s employees filed suit, challenging the national retailer’s background check procedures. The ex-employees alleged that, by providing the two forms to applicants simultaneously, Kohl’s ran afoul of the requirements of the federal Fair Credit Reporting Act (FCRA), the California Investigative Consumer Reporting Agencies Act (ICRAA), and the state’s Consumer Credit Reporting Agencies Act (CCRAA).
Kohl’s filed a motion to dismiss the suit. The U.S. District Court for the Northern District of California granted the motion, although it dismissed the FCRA and ICRAA claims with leave to amend.
Section 1681b(b)(2)(A)(i) of the FCRA requires that “a clear and conspicuous disclosure has been made in writing to the consumer at any time before the report is procured or caused to be procured, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes.”
The plaintiffs advanced a theory that Kohl’s violated the stand-alone requirement because the Employment Application and Consent and Disclosure Form were part of the same employment packet and provided to applicants at the same time. They also alleged that the disclosure also failed the “clear and conspicuous” requirement because it appeared together with other information in the Employment Application.
Kohl’s countered that the documents were two separate forms that served two separate functions in the applicant screening process. The court agreed.
“Plaintiffs have not sufficiently alleged Kohl’s failure to comply with the statute,” the judge wrote. “Each form separately bears [the Plaintiffs’] signature. The Employment Application is formatted in landscape, bears a separate title, and contains a separate form code. More importantly, the Employment Application appears to serve a different and distinct function. It requests certain employment-related information about the applicant such as basic identifying information, criminal history, and authorization and release for the company to ‘contact … employment references and personal references, as well as education institutions.’ In contrast, the Consent and Disclosure Form is formatted in portrait, and bears a distinct title and form code.”
Based on the pleadings, “Kohl’s appears to have provided two separate documents to Plaintiffs, in compliance with the FCRA,” the court said.
The judge distinguished two cases cited by the plaintiffs where federal courts found possible FCRA liability when employers presented a release of liability with either a disclosure or authorization provision in the same document. “Here, in contrast, the disclosure and authorization provisions appear in one document (the Consent and Disclosure Form) while a release of liability appears in a separate document (the Employment Application),” the court explained.
The court granted Kohl’s motion to dismiss with leave to amend the FCRA and ICRAA claims. The plaintiffs conceded that the CCRAA claim was subject to dismissal and it was dismissed with prejudice.
Source: http://www.lexology.com/library/detail.aspx?g=064fb9aa-de46-408e-8735-4f17e7142926
US Investigations Services Inc, the private firm that vetted former National Security Agency contractor Edward Snowden, has agreed to a settlement worth at least $30m, resolving US case connected to its background investigations.
Kimberly Amicucci is proud to be featured alongside other likeminded women in the latest addition of the WBENC January 2015 Presidents Report-click here to read the full article. Kimberly was asked to be part of a photo shoot and article about Atlas and their recent rebranding & relocation. Jacqueline Cleary CEO of Atlas has been a huge supporter of other woman owned businesses throughout her career and DataScrening is happy to be a partner of Atlas’.
Known as the The Opportunity to Compete Act
Summary:
For more information on this subject visit: http://www.njleg.state.nj.us/2014/Bills/A2000/1999_R1.PDF
Written by: Karen Jacobsen
Garden State Council – SHRM
23rD ANNUAL State Conference and Expo
October 19 – 21, 2014
Atlantic City Convention Center
KAREN JACOBSEN TO SPEAK AT GARDEN STATE COUNCIL SOCIETY FOR HUMAN RESOURCE MANAGEMENT (SHRM) 23rd ANNUAL CONFERENCE AND EXPO ON Background screening IN ATLANTIC CITY, NEW JERSEY
Karen Jacobsen President of Data Screening will deliver a session entitled The Do’s and Don’ts of Background Screening at the 23rd Annual Garden State Council Society for Human Resource Management (GSC SHRM) Conference and Expo scheduled for October 19 through October 21, 2014 at the Atlantic City Convention Center.
This year’s conference theme, BE AN HR SUPER HERO is a three day educational conference geared to Human Resource and business practitioners that offers more than 60 knowledge-filled concurrent sessions, dynamic keynote addresses, pre-conference activities and learning sessions on Sunday, evening networking opportunities, interaction with expert leading HR vendors, outsourcing partners, and service providers, a knowledge center and job board, HRCI certification hours, plus many other special events. This is a conference not to be missed!
For additional conference information and registration visit
http://www.gscshrmconference.org
September 25, 2014
Data Screening and our software provider TazWorks take security seriously and due to the early warning alerts we subscribe to, we were able to proactively patch our systems to protect us from the new security vulnerability known as the ‘Bash’ bug (CVE-2014-6271) the same day it was announced by the National Vulnerability Database. Read more
“Original article attributed to TazWorks, LLC.”
We will be sponsoring the 2014 HR Florida Conference October 6th and 7th. The conference will be held at Hilton Orlando at Bonnet Creek. Come visit us at booth 434. Continue Reading.
