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How Can You Legally Screen a Tenant?

Property Management comes with many responsibilities, and one of the most crucial is prevention. Preventing tenant-damages property and the incurred costs. Preventing vacant property because the tenant left without notice – and without pay. Preventing damages caused by pets in a no-pet zone. The list continues. The most effective prevention tool is investing the time and finances to pre-screen clients. It will save you both time and money in the end. A key factor is prescreening within legal boundaries.

Here are 7 steps to handle keep tenant screening legal

  1. Have the prospective tenant complete a rental application. Your state may allow you to charge an application fee which may cover the background and credit check.
  2. Make sure the form clearly states you will be performing a background check and criminal history report as you must have the person’s written
  3. Check all financial information such as bank records, income, and credit cards. It’s good to go back about 7-10 years to get a full financial picture, such as a burden of debt, and learn how the prospective tenant will have the ability to pay rent each month.
  4. Verify the prospective tenant’s income. You may want to request a recent pay stub since some employers don’t give out private information or salary histories.
  5. Always ask how many people will be living at the address. Include questions and applicable information about pets.
  6. It is possible to ask about habits such as smoking and friends who smoke or if the person works the night shift or odd hours.
  7. Contact and validate personal references.

Better yet – contract with a professional screening company, such as Data Screening – they will ascertain all aspects of screening are complete and legal, ultimately saving you cost and frustration.

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 ASA (American Staffing Association), SHRM (Society for Human Resource Management) and the NAPBS (National Association of Professional Background Screeners).

 

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New HUD Guidelines for 2018

If you rent properties, you need to know about laws and issues regarding legal aspects of leasing. For instance, new guidelines released by the US Department of Housing and Urban Development may affect the way you approach the tenant screening process.

The end of April, HUD released a bill aiming to raise rent for families who receive housing aid to reduce long wait times for federal assistance and to increase self-sufficiency. This rent reform bill will set new boundaries and limits on assistance.

The Making Affordable Housing Work Act (MAHWA) of 2018 intends to amend the Housing Act of 1937 to introduce rent reforms and standards. HUD Secretary Ben Carson said, “The current system isn’t working very well. Doing nothing is not an option.”

The MAHWA bill is similar to draft reforms first reported in February 2018. President Donald Trump signed an executive order in April which mandates work requirements for benefits in preparation for welfare reforms affecting housing, food, and healthcare.

MAHWA establishes new formulas for calculating rent; that is, families must pay 35 percent of their gross monthly income or 35 percent of the total an individual would earn working 15 hours minimum per week for four weeks—whichever amount is higher. The bill also creates a new minimum rent for those presently exempt from paying the 30 percent, which includes the elderly and disabled.

In summary, the new legislation enables public housing authorities and landlords who accept vouchers to put in place work requirements for people who receive aid. While the bill does not indicate minimum or maximum hours of work to be set, or the nature of the work involved, it does give Carson the power to set those terms. And Carson’s theme is to promote self-sufficiency and better financial stability.

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 ASA (American Staffing Association), SHRM (Society for Human Resource Management) and the NAPBS (National Association of Professional Background Screeners).

 

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First-Time Landlord? 5 Things You Must Know

Interested in being a landlord? Everyone starts in the same place, wanting to learn how to manage a property. With this in mind, it is smart to learn from experienced professionals who can teach you to avoid mistakes they have made, and fortunately for you, a lot of tenant property owners are willing to share where they went wrong.

  1. Your rental property is a business. Conducting good business means complying with all relevant laws to keep you and your tenants’ safe and secure. It also means keeping your investment in top shape to prevent problems before they occur. In fact, experts recommend setting up the property as a Limited Liability Company (LLC) to shield your personal assets and gain tax advantages.
  2. Document everything about your property. Whatever your property’s condition, take pictures and videos before renters move in, or tenants move out. Keep all receipts of repairs done because of tenant issues. Compare the information to assess for damages. A documented record also protects if you need to defend against a claim filed by a tenant.
  3. Set the right rental price. Research your locale to determine competitive rates for similar properties. Then compare those rental amounts to your fixed and variable expenses. You should know how monthly rental expenses will affect your monthly revenue.
  4. Have a network of reliable contractors who can complete repairs correctly and promptly. Having contractors that are both trustworthy and skilled to do the work you need is like having a treasure chest of gold. It gives you peace of mind that the property and tenants are in good hands.
  5. Implement a tenant screening process. It won’t matter what you do if your tenants don’t pay on time. Require a rental application that provides all pertinent information including details on previous rentals and references. Be specific about how many people will live in the rental and whether there are any pets (if you allow them). Include a credit check and background screening, too.

These are merely a few of the recommended steps to take when becoming a landlord. For accurate and effective screening, why not contact Data Screening. The firm has knowledgeable staff to help with legal aspects of tenant screening and questions.

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 ASA (American Staffing Association), SHRM (Society for Human Resource Management) and the NAPBS (National Association of Professional Background Screeners).

 

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Employers Should Know: Employment Screening for 2018

Keeping up with state regulations and background screening industry trends can be a daunting process for employers and HR professionals. While changes in laws may implement protections for those who are seeking work, employers must also be mindful of how they conduct hiring and screening processes to prevent discrimination and negligent hiring.

Here are some hiring trends and background check information employers need to know for this year.

Ban the Box

The Ban the Box policy was instituted to encourage employers to consider an applicant’s qualifications rather than take the chance of being prejudiced by his or her criminal history. The Ban the Box policy removes the question of criminal history from the employment applications, so all candidates have a fair chance at employment. To date, more than half the states in the U.S. have adopted the new law. California has put it into practice as of the first of this year, and other states are likely to follow this progress toward adoption nationwide.

Limited use of Credit Reports

Cities and states are battling laws to limit credit reports as consideration for employment arguing these prejudice the employer and are thus discriminatory. The caveat exists for applicants who will be making financial decisions, accessing financial records or handling money as the screening is directly applicable to their job. While only a handful of states have thus passed a law about credit reporting, projections say other states will follow suit.

Inquiries about Salary History

Several states have restricted employers from inquiring about previous salaries. The impetus behind this requirement is an effort to end the wage gap or gender discrimination. This law is also likely to continue a pattern of adoption across the nation.

Engaging the services of a reputable professional agency, such as Data Screening, ensures you as an employer will meet all federal, state and local laws as you determine the best candidates for your positions.

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 ASA (American Staffing Association), SHRM (Society for Human Resource Management) and the NAPBS (National Association of Professional Background Screeners).

 

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What Is Tenant Screening – Why Is It Necessary?

If you are in the business of real estate, such as a property management company, real estate office or apartment building owners, you need specific and accurate information to evaluate and choose reliable, qualified tenants for rental properties.

The Process

  1. Tenant Pre-Screening

From the potential tenant’s initial contact about renting your property, you begin to form impressions as to whether that individual will be someone who can fulfill the lease agreement. While rental price vs. income is an obvious qualifier, pre-screening goes beneath the surface.

You can often discover a lot by allowing the prospect to lead with questions so you may learn what is important to them. For example,

  • Questions about a pool or exercise area might indicate that the potential tenant values personal care – and people who value personal care, often value property care.
  • Questions about average utilities or washer/dryer hook-ups may indicate a person who is careful with finances.
  • Questions about social outlets in the area from daytime activities to bars and nightlife reveal their interests.

Presenting your questions is also a critical part of prescreening.  Be sure to include questions such as,

  • Do they currently rent, how long have they rented, and how long will they expect to live in the rental?
  • Why are they moving to a new rental and how soon do they want to move into the apartment? (If moving was a sudden decision and they need to vacate their current location, it may indicate some negative issues.)
  • What do they do for a living and what is a rough estimate of their annual income?
  1. Rental application and credit screening.

If a prospective tenant is still interested, set up a time for completing a lease application and securing a deposit. Keep an eye out for red flags as you meet the applicant. First impressions do tell you a lot – like a sloppy appearance may indicate what you can expect regarding upkeep of the apartment.

  1. Background Checks

When the rental application is complete, review the lease agreement, collect a deposit, and inform the potential renter you will need to run a credit report and criminal history check. Remember, it is a legal requirement to inform the prospective tenant you will be checking their credit report and for them to authorize the screening. Consider charging a nominal fee for this service, which will apply to the first rental period if the background check is clean

Rather than do all the screening and checking yourself, particularly if you have limited staff, it would be beneficial and efficient to hire a qualified, reliable agency such as Data Screening, to administer the process on your behalf.

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 ASA (American Staffing Association), SHRM (Society for Human Resource Management) and the NAPBS (National Association of Professional Background Screeners).

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6 Reasons for Background Check Delays

Employment screening is a crucial part of the hiring process.  While an employer may want the most rapid response possible, it is wise to mitigate risk by being thorough and accurate.

On average, an employment background check takes up to five business days depending upon the nature and scope of information requested. It can take longer, however, due to a variety of reasons.

Incomplete information. One of the top causes for delay, yet it is the most easily prevented. As an employer, ensure that all the information about a candidate – full name, address, etc., including correct spellings – is accurate before submitting it to a screening agency.

Identity check.  Some records are nearly instant, but others take longer depending on the type of check conducted. A social security number trace may take less time than a passport or national identification card. Some identity screenings may also include a search of a global watch list.

Drug testing. Face it – drug screenings take time. The potential candidate must get to a lab, and then you have to wait or results. On-site facilities for collecting specimens helps, but there is still a wait period.

Holidays and backlogs. Courts can be backlogged or closed for a holiday. This increases time it takes for records to be processed. A delay can also occur when a court mandates research must be conducted specified personnel. Of course, the record must be confirmed as up to date and legally reportable.

Difficulty establishing verifications. Sometimes you may have trouble contacting a former employer or educational institution. Furthermore, their response may take a while. Other times, you may need to request additional information to substantiate previous documentation.

Nonresident information. If a candidate’s background contains information that must be requested outside of the United States, expect a slower process. Organizations and institutions located in other countries may operate differently and require additional time to verify a request.

Remember, if a background check signals a glitch, as a potential employer, you are legally obligated to notify the candidate. Once notified, the candidate has the opportunity to dispute the issue.

Consider contracting a screening agency to do your background checks. They still have to deal with the above issues, but they will be dealing with them – while you have more time to do what you do best.

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 ASA (American Staffing Association), SHRM (Society for Human Resource Management) and the NAPBS (National Association of Professional Background Screeners).

 

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Protect Your Property while Subletting

As a landlord, your priority is protecting your rental property. It is the reason you have leasing agreements and tenant screenings. But what do you do when a tenant who has always paid rent on time and kept his apartment in pristine condition wants to sublet?

Subletting is not a risk-free concept – nor is it easy, but sometimes it’s the best choice. For example, if that premier tenant is leaving for an extended work assignment, but neither wants to put his/her furnishings in storage or have to find another apartment when returning. (Subletting differs from assigning, in which the tenant permanently leaves the apartment and assigns the lease responsibility to another individual.)

Protection Comes in Writing

If you agree to sublet, clarify terms and document everything.

  1. Ask your current tenant to share, in writing, their reasons and documentation for approving the potential sublessee.
  2. Even though the sublessee has earned the tenant’s approval, have them fill out your standard application and conduct your usual procedure – including credit and criminal background checks.
  3. Create a sublease agreement, which establishes who pays the rent and, if not included in the rent, the utilities.
  4. Establish who is responsible for late fees, damages, etc. In most cases, the buck should stop with the original tenant.
  5. Get the current tenant’s contact information and establish in writing, that you will be notified of any changes that occur while they are gone.
  6. Ensure that both you and the current tenant are in compliance with your local and state laws.
  7. Take photos of the apartment on the day the current tenant is leaving – this will establish proof of the condition of the property, as well as the furnishings, should a question arise.

Whether or not you choose to sublet, managing property includes background checks. Let Data Screening make your job easier. We have been serving businesses since 1996.

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 ASA (American Staffing Association), SHRM (Society for Human Resource Management) and the NAPBS (National Association of Professional Background Screeners).

 

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Ban the Box and Criminal Record Laws

Employers and HR Managers are on constant alert for changes to state and federal background check regulations to prevent discrimination in hiring practices and screening laws. This includes the evolving Ban the Box laws.

The phrase “Ban the Box” was coined by groups in a civil rights campaign on behalf of ex-offenders who frequently were unable to secure or were limited in the jobs for which they could apply or be hired.

The underlying concept was if an ex-offender could not find a job, a higher percentage of those people would tend toward recidivism. So, instituting more advantageous hiring policies would benefit society by fewer ex-offenders backsliding.

Advocates of the program agree to its necessity because of stricter laws governing drug crimes—which may have been the result of a wrong decision in an applicant’s youth.

Those who disagree argue it exposes their businesses and employees to higher risk and potential crime. Some propose it could also expose employers to more lawsuits from unsuccessful candidates. However, those who wished to quiet the campaign may have inadvertently enforced the Streisand Effect on it.

Either pro or con, there is an official guidance offered by the EEOC. The guidance provides details (in Section III, A.) regarding contextual framework for use of criminal record-screening.

Criminal Record

As with the Ban the Box trend, employers are expected to consider an applicant’s qualifications before learning about their criminal history. To date, more than 150 cities and counties and 30 states have adopted the fair chance practice.

States, too, have included their interpretations to the ban the box and criminal record checks, such as how long after the criminal history the employee is applying, and how grave was the offense. These amendments help the employer to assess individuals concerning the duties inherent to the job.

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 ASA (American Staffing Association), SHRM (Society for Human Resource Management) and the NAPBS (National Association of Professional Background Screeners).

 

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Is a Former Employer’s Bad Reference Harmful?

Company XYZ wanted to hire Joe Blank. He seemed the perfect candidate to fill the job after a lengthy and exhaustive search. Is there such a thing as a too ideal candidate?

Even his credentials seemed a masterful fit to the position’s requirements. If Joe was so perfect, then why did he have two bad references?

One negative reference would have been conceivable to overlook. But two?

The firm decided to dig deeper to find out why and asked the staffing agency that had found Joe to look further into his background. Was it possible that two of Joe’s former bosses had real issues with Joe’s performance? Were they crazy or was it sour grapes?

Here are three points to consider about references:

  • The Rant. When a former manager begins with negative comments and continues on a rant, it may be time to disregard the conversation. After all, the agency had spoken with Joe but didn’t know anything about the person providing the reference except that Joe had given the agency the name. And, yes, it is possible that two bosses had given bad references. People do tend to report negative qualities rather than positive ones.
  • The Truth. When Joe had applied for the position, he had been candid that he left his former positions with some conflicts. He admitted that he had ethical issues with some of the tasks his former managers had asked him to do.
  • The Excuse. The person providing the reference appeared double-minded. “What would you like to hear? Joe did his job okay, but I just didn’t like him. So, I wish you better luck.” Then before the agency representative hung up, she heard Joe’s former manager say under his breath, “Joe doesn’t know what he’s worth. If I give him a bad rap, he can’t leave.”

The point of any reference is to confirm what the interview has revealed. While it can push a decision forward, it also can feel like such a shot in the dark that it’s best to disregard what is said and rely more on the background screening.

In Joe’s case, the third reference gave glowing remarks and answered the representative’s questions in detail which persuaded her that Joe was worth receiving the job offer.

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 ASA (American Staffing Association), SHRM (Society for Human Resource Management) and the NAPBS (National Association of Professional Background Screeners).

 

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Answers to Three Important Questions about Background Checks

What can a firm expect when outsourcing candidate background checks? The following Q&A may help you decide what is right for your business.

Q.I have a small business and must carefully watch my bottom line. Why would I hire an agency rather than just use information at hand, like searching the Internet and Social Media, or speaking with references supplied by the candidate?

A. Internet and Social Media findings are just a place to start. Because it is difficult to know from what source the information originates, neither will provide the most complete picture of the candidate. Too, it is always best to hire a reputable screening agency, so you comply with federal and state ethical and legal standards.

Speaking to a candidate’s references can be an excellent way to confirm what the candidate expressed in an interview. The reference received, however, may be incomplete for several reasons. A former boss may not give a complete or honest answer about the candidate. You do not know the person providing the reference, and, the person may not have known the candidate. (Some candidates are clever and give their friend’s information knowing s/he will pose as a former boss.)

Also, the previous boss may have moved on. Or the reference will only verify the person’s employment start and end date and their salary.

Q. Why do I need to perform a background check?

A. In keeping with federal, state and local statutes, a thorough background check includes verification of past employment and can include a credit history and criminal history. These aspects help as a means of judging a candidate’s past, character and fitness as well as determining the potential risks for safety and security. For instance, an employer can tell if the candidate lied about being terminated from a past position, or avoided mentioning being charged with a DUI. Remember, as a business; you are also responsible to ensure the safety of all your employees.

Q. What else does an employment background check do?

A. It flags discrepancies in the information the candidate provided. It verifies education and certifications. It reduces risk and liability by fulfilling due diligence. It highlights a criminal or drug history. These factors give a more complete picture of the candidate.

It might sound cliché, but paying for a reputable professional agency, such as Data Screening.com, to provide the information you need on your prospective candidates gives you peace of mind about hiring. Since many businesses tend to be overwhelmed with responsibilities, laying to rest the worry about applicants seems a good ROI.

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 ASA (American Staffing Association), SHRM (Society for Human Resource Management) and the NAPBS (National Association of Professional Background Screeners).

 

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