If you’ve gone through the trouble of painstakingly creating an outdoor oasis, it would be disappointing to have a tenant who can’t care for it. A neglectful tenant could ruin expensive furnishings, damage appliances, and tie down your money through late payments. Selecting a good renter is also a good investment, so landlords need to know how to navigate tenant screening.
On the flip side, how much information is too much? In a bid to make the best decision, overzealous property owners can cross the line by inquiring about things that are a little too personal for comfort. If you have no idea what is appropriate and what can be grounds for a discriminatory suit, we’ve got your back. Stick around till the end to learn how to balance thorough background checks with tenant privacy.
Legal Boundaries of Tenant Screening
Tenant screening is a crucial step during the rental process for both parties. On one hand, gathering as much information as possible helps landlords decide who the best applicant is for property preservation. Savvy property owners often verify tenant information with a professional property manager in Northern Virginia to ensure their choice is the best fit.
On the other hand, tenants also have a right to privacy and equal housing opportunity. That’s why fair housing laws exist to prevent discrimination against protected classes. But how does a landlord know where to draw the line?
What Information Can Landlords Legally Request?
1. Credit History
Despite its flaws, you can tell a lot about a person from their credit score. Applicants with a pattern of late payments, loan defaults, and even bankruptcies are more likely to make rent collection more tedious. However, paying off a debt can also reduce your credit score, so it would be best not to use only this metric to make your decision.
2. Criminal Background
A recent past of violent offenses can be a precursor to trouble. As a result, landlords can legally ask tenants to disclose their criminal background. The cleaner the slate, the less likely you are to encounter problems with tenants carrying out illegal activities on your premises. Besides, it also protects your property and neighborhood by ensuring your tenant is responsible.
3. Income and Employment
Follow the money. When evaluating a potential renter’s eligibility, remember to ask about their monthly income and employment status. In addition, you can ask the prospective tenant to back up their claims with a payment stub and confirm their authenticity. You can also reject their application if you don’t feel the applicant’s earnings can conveniently cover the expected rental income.
4. Previous References
Prioritize past landlord references when making a decision. Getting critical insight into a tenant’s behavior, how they get along with other renters, history of rental payments, and property maintenance can be a tiebreaker between two or more seemingly perfect candidates.
Potential Biases to Avoid
1. Race and Origin
Under Fair Housing Laws, you cannot reject an applicant because of their race or national origin. As long as they are legally allowed to live in the United States, you have to give them a fair shot at becoming tenants.
2. Sexuality and Gender
Federal laws also condemn discrimination based on a person’s gender or sexuality.
3. Religion and Politics
You cannot disqualify potential applicants because they practice or have different belief systems or religious observations.
4. Physical or Mental Disabilities
Some landlords try to discount persons with disabilities because they have to make special provisions such as reserving parking, installing handrails, or allowing assistance animals on their property. However, landlords cannot discriminate against tenants with a disability.
How to Conduct Tenant Screening with Respect to Privacy Rights?
1. Use a Written Rental Policy
When screening tenants, using a written rental policy is the easiest way to avoid a wrongful discrimination suit. You need more than good intentions; you have to proactively create an outline that lists the information you will consider before reaching a decision and share this with your potential tenants. That way, everyone is on the same page, and you can refer to that document whenever you want to make a fair decision.
2. Obtain Consent
Ask prospective tenants for permission before you start collecting information about them. Remember that renters are entitled to their privacy, and it would be best to obtain a written consent form stating they approve a thorough background and credit check.
3. Collect Only Necessary Information
Obtaining consent to do a background check is not a free-for-all information buffet. You have to stick to only the information landlords can legally request, including details like names, previous addresses, employment status, and income. Anything that does not directly contribute to your decision and could create a bias is off-limits.
4. Use a Verified Background Check Service
Avoid making costly legal mistakes by outsourcing the screening process to an expert. Several professional background-checking services can relieve landlords of the responsibility of collecting and sifting through so much information. As a result, they make it easier to decide on the best prospective renter while complying with state laws.
5. Choose Objectively
Consider all the information you have and choose objectively. After collecting so much data on each applicant, it would be a disservice not to use and decide to opt for sentiment. The best thing for your rental and reputation as a landlord would be to analyze the results carefully and pick a new tenant wisely.
Conclusion
Navigating tenant screening requires a sensitive approach and requires a constant balancing act between background checks and privacy, but it’s doable. Stick to the information you can legally request, such as credit history, employment status, criminal background, and previous references. With the right verification and close attention to detail, these metrics are often sufficient to make a good decision. Stay away from asking questions that could open up pits for potential bias, such as disabilities, sexuality, and gender, or politics and religion.
In the long run, it would be best to involve your prospective renter in the screening process by showcasing your written policy and obtaining consent for a background check. Of course, you can always outsource the latter to an expert property management service to help you collect and place highly qualified tenants in your rentals.
