Are you tried of renting to people who don’t pay their rent on time, destroy your property or cause problems for your other tenants? If so, tenant screening is the “key to success” when it comes to weeding out the individuals who could be problematic and connecting with those individuals who could be great tenants for living in your Portland Oregon Rental Property.

Tenant Screening 101

#1: Develop Written Qualification Criteria & Document Them

As a landlord, you have to decline an applicant from time to time. Sometimes, that applicant may be a member of a protected class under federal or state housing regulations. If an applicant accuses you of housing discrimination, you’re going to want to be able to show them a race-neutral, gender-neutral, disability-neutral, familial-status-neutral criteria written in advance. And of course, you’ll want to be able to show how the plaintiff didn’t meet these perfectly legal tenant screening criteria.

#2: Verify Income Sources

A generation ago, it was very difficult to create a fake pay stub. However, now that everyone has a computer, a scanner, and photo editing software, it’s a snap to forge or alter a pay stub. Sites like www.stubsamples.com and www.speedystub.com allow small business owners, contractors, and others who are frequently paid in cash—many of whom are legitimate applicants—to create their own pay stubs. However, it’s a simple matter for anyone to generate entirely fraudulent pay stubs for the purpose of deceit.

To reduce the risk of being conned by a fraudulent pay stub, consider asking for three months of bank statements as well.

#3: Check Out Social Media Profiles

If you can find the applicant on Facebook, Instagram, or LinkedIn, take some time to scroll through their account. Does their information match their employment and residence history? Are there references to committing a crime or being incarcerated? Do they affiliate with any hate groups or gangs? Know the warning signs.

#4: Contact Two Previous Landlords

Remember, their current landlord may speak of them in glowing terms just to get rid of their worst tenant. If the tenant is trashing the place, is a chronic late payer, or is generating complaints, the current landlord has every incentive to give a superlative reference just to get them to pack up and leave. Call their previous landlord, if possible, to get a less biased reference.

#5: Run a Background Check on Each Adult Applicant

Both spouses or roommates should get their own background check. Stay alert to attempts to substitute a relative’s background check information in place of the actual applicant.

#6: Don’t Offer Leases Without a Completed & Signed Rental Application

Often, someone who fails to complete an application in full is hiding something. If you need to conduct an eviction down the road, you may need that application in order to show that the tenant lied. If you allow them to turn in an incomplete application, you open yourself and your other tenants up to risk, and you lose important documentation if it comes to an eviction.

#7: Don’t Make Written Comments on the Application Other Than Those Pertaining to Your Rental Criteria

A comment like “Credit score of 560 is less than the 620 required” or “Income is less than the $4,000 per month required to rent” is fine. However, if a plaintiff’s attorney gets ahold of the tenant’s application and finds that you’ve written “Two small children” on the application, that’s probably enough for them to go after you on a housing discrimination claim.

#8: Hold on to Applications for Several Years

The specific time frame depends on the statute of limitations in your state. However, be sure to keep them under lock and key. These records contain sensitive, personal information on each applicant that they’re depending on you to secure. Access to these records should be on a strict need-to-know basis.

#9: Beware of False Positives

If a tenant has a common name, it’s relatively easy for an innocent person to get flagged. If an otherwise good tenant is coming up hot on a criminal background check, look at the mugshot and basic biographical info to be sure that it’s the same person.

#10: Use a Property Manager

A professional, experienced property manager offers important benefits for the landlord. First, you don’t have to spend time dealing with unserious or unqualified applicants. Second, a qualified and experienced property manager is likely to stay up-to-date on the evolving laws and regulations that govern housing discrimination. They can prevent landlords from making common mistakes, like posting discriminatory language on housing ads that can cost careless landlords tens of thousands of dollars in fines and court costs. Third, if the property manager makes a mistakes, they generally carry substantial errors & omissions insurance that can protect you if their error results in liability to you as the landlord. This is a vital consideration. You can ask for proof of E&O insurance when you interview and contract with a property manager.

Don’t Believe Every Reference Until You Verify It

In today’s internet age it’s easier than ever before for a potential tenant to put down fake personal or professional references in order to fool landlords or future employers.

To verify references you should spend 5 minutes looking up each personal or professional rental reference on Google because if the reference can’t be traced online then it’s probably fake.

Remember that if a personal or professional reference can’t be found on Google, you should always try websites like LinkedIn or last of all, Facebook, to determine if a rental reference is real or not. 

Tired Of Managing Your Portland Oregon Rental Property Yourself? Contact Us Today!

Are you tired of managing your rental property in Portland Oregon yourself? Contact Property Management Systems today by calling us at (503) 646-9664 or click here to connect with us online.