A smiling face and a fist full of cash is not the same as a rental application.
The Letter Carrier, a trusting hardworking man who emigrated
with his family from Laos a few years ago and now owns a few rentals,
drops off the mail and asks if he could speak to me. It seems his
tenant hasn’t paid him in the four months she lived there. So I asked
him about his tenant. Did she have any prior evictions or criminal
problems? No, she is a nice lady and he even asked her if she had ever
been evicted before he rented to her.
Enquiring minds wanted to know. I ran a public record search on her.
She was evicted four times in the past two years and had seven, yes
seven, convictions for prostitution including three at the mailman's
house. We helped him do the eviction. She knew the system and stalled
it by applying for emergency assistance through W2.
When it was over six months lost rent and thousands in property
damage, including that done during a police raid while the eviction was
on hold. So saving $20 by not checking the tenant cost the owner around
five thousand dollars.
The Screening Process
No
owner wants to have Drug Dealers or users in their properties. They are
hard on the buildings, drive out good tenants, cause the neighbors to
complain and they don't pay rent. Moving them instead of jailing them
is akin to releasing a herd of locust on our housing stock and
neighborhoods. Both locust and drug criminals leave a path of
destruction in their wake.
Likewise no owner wants to have a bunch of freeloading, nonpaying
professional deadbeats beating them out of their rent while enjoying
the use of water heat... well you know the issue.
You need a solid screening process to keep the bad guys and gals out
of your place to avoid the associated problems. One that works is:
- Require all applicants have a picture ID, otherwise you don't really know who is standing in front of you.
- Have
all applicants provide a utility bill or piece of mail addressed to
them. This is the quickest way to find if they really live where they
say they do. Don't forget to look at the date; it could be an old bill
from a long ago address
- Use Tenant Screening Services or
some other credit reporting agency to obtain a credit report. More than
the credit information you will want to look at the header, which
provides addresses and names they have used. Then check with those
property owners as well because the current owner, especially if they
are smaller, may lie to you just to get rid of their headaches.
- Have
Accurate Screening Services or another tenant screening service verify
the actual ownership of the properties they live at and talk to that
owner. You can do all this yourself but there is a point of diminishing
returns.
- Get in you car and stop by their current home. It
is amazing how many times everything else has checked out, only to find
they really don't live where they say they do, or there are twenty gang
members in the front yard, or you are greeted by a 150 pound pit bull
or they are sloppy or no one at the property even knows who they are.
Once we even found the address was a vacant lot.
- A month
after they move in stop by and check who is really living there. The
worst drug problem we ever had the tenant checked out perfect. He never
moved in and later admitted to the police that he took $300 from the
drug dealer in exchange for renting the apartment for them.