Consistency in the tenant screening process may be one of, if not the most important keys to your property manager clients avoiding a potential Fair Housing complaint or lawsuit. Unfortunately, we often hear of applicants filing complaints or even lawsuits against landlords or property managers because they feel they were discriminated against. This is why it is so important to keep records of the screening process so a landlord or property manager can show they approve or deny applicants based on a legitimate, nondiscriminatory system.
Here are a few tips to relay to your Property Manager Clients that they can use when choosing tenants.
- Be Consistent – using an organized and comprehensive screening process for every applicant will protect your client if someone claims they violated the Fair Housing Act.
- Learn and understand the fair housing rules – The Federal Fair Housing Acts (42 U.S. Code §§3601-3619, 3631) prohibit discrimination on the basis of race, religion, national origin, gender, age, familial status, physical or mental disability (including recovering alcoholics and people with a past drug addiction). Many states and cities also prohibit discrimination based on marital status or sexual orientation.
- Run a Credit Check & Verify Employment – There are countless companies that run credit checks for a minimal fee. Outsourcing this function can help reduce your client’s liability. Be sure your clients are thoroughly checking credit scores and verifying employment so they can be sure they’ll get the tenants they desire.
- Check references! Especially past landlords – make sure your clients ask about past evictions (if any), pets, complaints from other tenants, if rent was paid on time, any maintenance issues, and an important question to ask is if the previous landlord would rent to this tenant again.
Remind your property manager clients that it is important not to cut corners when conducting the screening process. A great tool you could suggest to your clients is the “Every Landlord’s Guide to Finding Great Tenants” book which they can find on NOLO.com.
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