The Carlsbad tenant screening process is the start of a relationship that can be either fruitful or frustrating depending on how well you can manage it. There are some easy Dos and Don’ts that can help you keep the process focused and avoid potential pitfalls or discriminatory behavior.
Do apply your screening procedures uniformly and consistently. Don’t cut corners on your screening procedures for an applicant just because you get along well with them or like their personality. Doing this can stave off any concerns about favoritism and protects you from tenants who may have a winning personality but low credit score.
Do check tenant credit reports, employment, and criminal history. These are easy tools to use to ensure that your renters will be able to pay their rents on time regularly and that they will be good partners in your business.
Do keep records for up to ten years. These records should include rental applications or agreements, signed leases, data pulled from any reports, and copies of correspondence. Whether you deny an applicant or not, a paper trail can help to protect you down the road if an applicant claims that you are discriminatory in your practices and helps you to track trends and stay consistent in how you make tenant decisions.
Do put it in writing. Sending a written declination letter when rejecting an application will clearly state the reason that you denied a prospective Carlsbad tenant and help to protect you from discrimination claims.
It is essential to stay abreast of any changes in laws or regulations at the local, state, and federal level that govern the screening process. Please don’t fall into the trap of doing things the way that you’ve always done them. Be sure to find a legal resource who can help you keep your documents up to date and field any questions.
Don’t stray from the basics on application forms. Keep the information you collect related to things like employment and income and previous rental history and avoid asking questions about things such as marital status, disabilities, sexual orientation, or citizenship. It’s immaterial to a tenant’s ability to pay the rent and can start to encroach on Fair Housing Act-protected categories.
Don’t reject applicants with a criminal record outright. There are often policies in place, including US Department of Housing and Urban Development guidance issued in 2016, that require landlords to consider applicants with a criminal record on a case by case basis rather than using blanket policies. Consider this background information in conjunction with other factors.
A professional Carlsbad property management company can handle many of the challenges of tenant screening for you, freeing you to focus on the bigger picture of your investments.
If you need help choosing the right property management company, please download our free guide to finding the best Carlsbad property management company.
