TENANT SCREENING – by Mel Metts 2009

Michael and Barbara Martins applied for my 2-bedroom apartment in Lincoln.

According to their application, the Martins have been living one block up the street for the past year. They list their landlord as “Mrs. White,” and provide her phone number.

I call Mrs. White’s number and I’m told to leave a message. When Mrs. White returns my call, she says, “You called about my tenants, the Martins. What would you like to know?”

Mrs. White says that the Martins are nearly perfect tenants, always pay on time, keep a clean unit, and there’s never a conflict with the neighbors.

Should I rent to the Martins family? Is Mrs. White really the landlord? Should I have asked her a few more questions, such as How much is the rent, and How long have the Martins lived in their apartment?

When I called the county treasurer’s office, I found that the property is owned by Mr. & Mrs. Brown, not Mrs. White. And when I called Mr. Brown, I found that the Martins family is being evicted for unpaid rent amounting to $2,000. If Mr. Brown couldn’t be contacted by phone, I could have learned the same information by visiting the Martins’ apartment building, and asking some of the neighbors. The neighbors could also tell me how to contact Mr. Brown directly. Does this sound like a lot of work? You bet! But it’s nothing compared to what a wrong decision will cost you. And while you’re renting to bad tenants, you’ll have a devil of a time attracting good ones.

Once the tenant has the keys to your rental unit, the balance of power shifts from you to the tenant. Considering the tremendous cost, in time and money, to correct an error on your part, it is imperative that you carefully screen each applicant before making a renting decision.

A thorough screening process includes employment verification, current and prior landlord verification, a credit report and a civil/criminal background check.

Other landlords in your area are your competition. If they are reasonably competent in weeding out their bad tenants and rejecting bad applicants, those applicants are going to show up on your doorstep. Either you check them out carefully ahead of time, or you’re stuck with the dregs of the community.

Always follow this rule: If you can’t verify the information, deny the application.

We are amazed at how many landlords accept tenants without even talking to the previous landlord. Many of our tenants move on to other landlords and we rarely receive a call to verify their rental history.

At a bare minimum, thorough tenant screening includes:
• Talking to the current and prior landlord
• Verifying the tenant’s job or other source of income
• Criminal background and evictions check
• Credit report

Additional steps that you may need to take, at least some of the time:
• Personally visiting the applicant in their current home. If you pay a surprise visit, you’ll be able to collect a great deal of information. Because, once again, respectable tenants live respectably.
• Talk to the applicant’s existing or old neighbors. They’ll provide a wealth of valuable information, and the price is right. It’s free.
• Your local police department may be willing to provide background information on your applicants, including the number of calls to their address. This is especially helpful because some tenants are problems because of a violent boyfriend or ex-husband.

Many bad tenants are experts at finding apartments; they do it all the time. But they leave clues, and the list of tactics below are familiar to every landlord who’s been in business long enough to regret some of his mistakes. In the second column are some suggested techniques to protect yourself from undesirable tenants.

Tactic used – Impersonating someone else
What the landlord can do – Check a valid photo ID.

Tactic used – Falsifying current / prior landlord and / or address
What the landlord can do – Ask questions the fake landlord is not likely to know (ie How much is the rent, what’s the street address, how long has Susie rented from you?). Ask for current utility bills in the applicant’s name to document address.

Tactic used – Falsifying current / prior employer
What the landlord can do – Ask for a current pay stub, call employer’s Personnel / Human Resources Department. Don’t take the word of Susie’s supervisor, “Mary”.

Tactic used – Concealing a prior eviction
What the landlord can do – Civil records, credit report or current / prior landlord

Tactic used – Underreporting the number of occupants
What the landlord can do – Check with current / prior landlord

Tactic used – Creating a sense of urgency (i.e. “We have the cash, our belongings are in the car, and we need to move in now.”)
What the landlord can do – Just say “No!” Don’t take shortcuts you’ll regret.

One thing is sure: Undesirable tenants know that you’re probably too lazy or too busy to screen them properly. Let them know how wrong they are! And if you find it difficult to verify some of the information, shift the responsibility to the applicant (i.e. “Since your previous employer has gone out of business, give me names and numbers of some of your coworkers I can contact”). Be especially thorough if you observe some of the following behaviors.

Warning Signs
• “We’re ready to move in…we have the cash with us!”
• Wanting the apartment after only a minimal inspection.
• They like the apartment a little bit too much.
• Telling you too much about themselves.
• They absolutely must move in this weekend.
• Erasing or crossing out and changing information in the application.
• Wanting to pay the full deposit in advance, because they’re “Sure their application will be approved.”
• Need to take the application home so they can fill it out later.
• Providing unverifiable information.

The Application form is the first step in the screening process. Make sure your application looks professional, and include every question that will be needed in your verification process. Ask for even more information, where legally possible, that might help you track down a tenant who later skips out with unpaid rent and damages.

Every experienced landlord has strong opinions on how to take a rental application. What works for you may not be right for someone else, but you’re welcome to try any of these and select the ones you like:
• Insist that each applicant provide photo identification.
• Don’t hand out applications; have the tenant complete the application on the spot.
• Don’t let the applicant fill out the form; instead, ask the applicant questions while you complete the form yourself.
• Charge a nonrefundable application fee to separate the serious from the window shoppers.
• Require that each applicant sign authorization for a criminal background check. This should scare away some problem tenants.

In conclusion, we want to stress that there are wonderful tenants out there, and you can arrange for them to live in your apartments. And as you weed out the undesirables, the job becomes easier — less litter to pick up, less damage to repair, fewer late or bounced rent checks, longer-term tenants.

And finally, remember our “Golden Rule,” If you can’t verify the information, deny the application.

Landlord Story about Texas Evictions
Submitted July 2009

In Texas it only takes money to evict a tenant. Here is the jiggle:

Rent due on the 1st. Three days later, issue a 3 day notice. It is a 4 day if the 3rd day is a Sunday or holiday. Fourth day to the J of P to initiate the legal service. Cost $97.00. That day to initiate legal service does not count. After 5 days, landlord and the tenant meet in court (if they show up, usually not). Landlord wins the eviction. Tenant gets another free day. We must wait 5 days for the tenant to appeal.

If no appeal, $51.00 to the Constable for forceable removal within 3 days. Another free day for the tenant. (filing days do not count).

Twenty one days at the minimum.

We now have a judgment. We file to prefect the judgment, another $16 for recording. We now have a viable document good for 10 years, renewable for another 10 years. If I may paraphrase former USA Vice President John Nance Garner when asked the value of being VP responded “worth about as much as a bucket of warm spit”. I feel about the same for the judgment.

At this point we have invested one months rent $350
rent + 261 for costs.

That is $611 + 3 day trips @ 25 miles per trip.

I would be happy to donate this judgment to any one. Especially if it went to a charity.

Think how many owners would do this. Think how many rentals there are.
It could recycle its self if the charity would support the homeless. It would work if the DMV or other state supported entity would not renew driver license or auto registration with out their eviction. I would assume that at least 1/2 or more would be administration fees.