Sublime Selections Start with Carlsbad Tenant Screening!
Can you say that five times fast? Like many Carlsbad area landlords, you probably find that tenant turnover is one of your chief concerns. This becomes especially apparent if you're handling a lot of the burdens of property management on your own. Perhaps you've struggled with empty units for a few weeks and have finally found the right way to market them. Now you have applications starting to roll into your email and filling your mailbox. That's great news—except that now you've created a new set of challenges! How can you sort through the prospective renters that you have and make the right choice?
Carlsbad tenant screening can be an involved process—for a good reason. It's vital to ensure that the tenants you choose are going to be a good fit for your property and expectations. It isn't a leap to say that your tenants are business partners in your real estate investments. For this reason, it's essential to give them all due scrutiny before putting pen to paper (or an e-signature) on a lease. But where should you start? Here are a few best practices that you can put to use in your Carlsbad area investments right away.
Some Tenant Screening Best Practices
Following tenant screening best-practices means doing a few things that will give you reliable and consistent results (and help you stay on the right side of the law). It also means avoiding actions that will cause you to mistreat potential tenants (intentionally or not) and open you up to charges of discriminatory behavior.
1. Be Consistent
Be consistent with your procedures and policies. Run the same checks on every potential tenant and don't make exceptions. If you run a criminal background check and credit check on one tenant, do the same thing with every tenant going forward.
2. Stay Educated
Keep up with changes in the law that can affect how you screen tenants. Changes in rules and policies at the federal, state, or even local level can have an impact on what information you can use in your screening process. Stay up to date and stay on the right side of the law.
3. Keep Records
Keep good records. Retain records of your dealings with tenants (even applicants that you don't ultimately take on as tenants). These records should include rental applications, tenant screening reports, signed releases, and documents or information collected during tenant screening. This information is critical to have on your side if an applicant contents your denial down the road, and the issue ends up in civil court. It can be wise to keep documentation such as this for up to ten years.
4. Avoid Discrimination
Whether you are screening tenants yourself or relying on a third party, establish the parameters that are important to you, and screen your tenants on those factors. Screen for an applicant's credit score, income, and criminal background and do your utmost to make a choice that is not influenced by religion, race, disability, or another protected class.
5. "Write It!"
Put rejections in writing. When you deny a rental application through Carlsbad tenant screening, document the reason why in an "adverse action letter" that gets specific about why you are not choosing that tenant. Your denial should be relevant to your screening criteria and should leave no doubt as to why you did not select the applicant as a tenant.
6. Seek Counsel
Remember to seek legal counsel when in doubt. Turn to someone well versed in real estate and rental law in the Carlsbad area when you have a question. This can save you a ton of trouble down the road if something unforeseen arises. Have an attorney periodically review your applications and other important documents to make sure they are compliant with relevant laws.
Look for a BRE Number
If you decide to outsource your tenant screening to a third party or Carlsbad tenant screening company, make sure that they have what's known as a BRE number (BRE#). This concept is important for Carlsbad property managers because a BRE number is the number of a real estate license granted by California's Department of Real Estate. With a handful of exceptions related to property management, California requires that an individual hold a real estate license to do almost anything related to real estate.
A property manager can avoid this requirement if they do not engage in rent collection or leasing activities, or live on-site if they do. Additionally, employees of a licensed property manager don't need to be licensed to perform activities connected to residential apartments. These activities include things such as accepting applications or providing information about a property. When you choose a company or licensed property manager that has a BRE number, you're selecting someone with greater flexibility and utility for you. Additionally, they're ultimately accountable to a licensing body.
Work with a Carlsbad Property Management Partner
Tenant screening can be a critical part of your success and can be a complicated process to tackle. Remember that you have help available to you when you need it! Reach out to a Carlsbad property manager if you find yourself struggling with this critical process. RainTree Property Management provides tenant screening services (among many others). Why not get started with our guide to Foolproof Tenant Screening? We would love to put our extensive understanding of property management technology to work for you!
