We have an eviction problem in the U.S. brought on by COVID 19 and the loss of jobs. These are unusual circumstances. The number of people across the U.S. believed to be on the edge of eviction for non-payment of rent is a staggering 18 million renters. No landlord wants to go through evicting a tenant. If you have a new or vacant rental property, you may be eager to fill it and begin collecting rent as soon as possible. However, it is worth the extra time and effort to conduct your due diligence when screening and selecting tenants.
A prospective tenant’s employment and income sources, rental history, credit history, and any relevant public records are all essential factors to consider when deciding whether to accept or reject a rental application. Investing the resources to identify good tenants at the application stage can lead to significant benefits over time if you can rent to responsible tenants and retain them over the long term. However, it is also critical to ensure that you comply with federal, state, and local anti-discrimination laws when evaluating prospective tenants.
Drew Sygit writing at BiggerPockets has some suggestions: “The tenant screening process needs to start with the end in mind—specifically, what are you willing to accept as a “minimum viable tenant”? There are lots of metrics that people can and do use to make that assessment. Still, we’re not even worried about metrics at this point—we’re talking about the most fundamental attributes here, the really non-negotiable bits.”
Drew Sygit writes, “When putting your criteria together (and throughout the tenant screening process), you must always keep in mind the Fair Housing Act (FHA), the most significant U.S. law that dictates what you can and can’t do during the screening process. According to the FHA, you cannot consider any of the following when screening applicants:
Importantly, because there’s almost no way to prove exactly why you’re treating different applicants differently, it’s 100% always the best idea to treat all applicants identically until you’ve figured out one or more of the “non-negotiable bits” above that gives you a solid, legal reason to do otherwise.”
As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. We offer the simple truth about your home and how we can help you sell it fast.
Give us a ring. We would love to help you understand the process and to answer all of your questions. You can reach us at 402 999.0577.