Applicant Screenings
As more cities enact rental housing ordinances and states continue to add or revise landlord-tenant statutes, there is correspondingly significant impact on landlord business management policies. Legislative efforts that move toward more inclusive tenant screening and selection practices do not prohibit a landlord from operating to his business necessity. However the new regulations have requirements and prohibitions on certain rental practices that could change a landlord’s policies and practices for rental qualification criteria, screening, and selection. In some circumstances a landlord may be required to conduct individualized assessment of an applicant’s qualifications and history.
There are many types of tenant screenings that provide data for applicant qualification to rental standards and consideration for tenancy. A landlord will need to pay particular attention to the applicable laws and ordinances in effect for the location of his rental property. In some areas scheduled implementation dates of new legislation have been postponed until a later this year. A landlord must be prepared now for the compliance that will be required. Compliance efforts should include a review of policy and practices including all forms and documents used in his property operations. Landlord screening policies and practices will need to be re-formulated to business necessity and compliance. Tenant screenings retain the same business purpose of risk management to qualify applicants to rental standards for ability to meet lease terms and conditions, to pay full and timely rent, to respect tenant neighbors, and to maintain the rental unit to good condition.
As a recommendation for areas particularly affected by issues of affordable housing, rental practices for screening prospective tenants has begun to focus more attention on qualifying applicants on such factors as income and employment verifications, credit history, and rental references.
The tenant screening practices discussed below are selected screenings recommended by some metropolitan areas as guidelines for landlords to determine if an applicant would be a good renter.