STRATEGY
TENANT SCREENING
MAINTENANCE SERVICE YOU CAN TRUST
Case Study: Tenant Screening in a Challenging Market LOCAL POLICIES REQUIRE FLEXIBILITY AND CREATIVITY FROM LANDLORDS.
by Eric Worral
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creening tenants successfully is vital to your success in rental real estate. The best landlords and property managers have personal secrets to suc- cess that make it possible to choose the right client nearly every time. One of the things that makes this process so com- plicated is that it can vary not just from state to state, but also from city to city. Case in point: In Seattle, Washington, tension between tenants and landlords has run high for several years thanks to aggres- sive and dynamic tenants’ rights policies enacted on a citywide level. In fact, some of the headlines might convince you to turn and run if you do not own rentals in the area already. For example, “Smug Seattle to Mom and Pop Landlords: Criminals are Welcome!” ran on a national news channel just two months ago. It’s true: Seattle-area laws have changed, and landlords are now banned from run- ning criminal background checks. The city is also making headlines for its “rent strikes.” However, the area still represents incredible opportunity to investors able to effectively navigate local policy and politics while in- stalling reliable, long-term tenants. How are S
information may still be important for your rental investment strategy. As early as 2016, the general counsel for the U.S. Department of Housing and Urban Development (HUD), Helen Kanovsky, issued a statement on crim- inal background and the Fair Housing Act. She said, “A policy or practice that denies housing to anyone with a prior arrest or any kind of criminal convic- tion cannot be justified.” Although this guidance does not necessarily affect every single landlord and was, at the time, addressed to apartment building managers, it both sets a precedent for future, localized action (such as in Seat- tle) that all landlords must monitor and establishes a clear, unequivocal opinion from HUD on the topic.
they getting this done? Here are three major changes Seattle landlords have recently experienced along with three methods for dealing with and navigating a complicated rental environment like this one: First, let’s look at local politics, policy, and law: BACKGROUND CHECKS Since background checks are one of the things that most landlords use when making their tenant decisions, the new rule against criminal background checks can slow the process. Due to an ordinance approved by the Seattle City Council in late 2017, landlords can no longer ask about any type of criminal record, arrests, or pending charges as of February 2018. This information cannot be used to make any decisions about resident applications except in the case of sex offenders, and then there are limitations. CHANGE #1 NO MORE CRIMINAL
At Real Property Management, we set expectations and make sure you know the maintenance process, what to expect from beginning to end, the costs associated with the work being done, and how it will appear on your monthly statement. You can have peace of mind knowing we have solid relationships with our maintenance vendors, and that they are thoroughly screened, verified, licensed and insured. Our standard policies vendors follow when dealing with our clients and working in your rental home result in cost-effective, quality repairs made by people you can trust. “My previous manager found creative ways to steal our income, like fictitious repairs and lawn mowing. I can’t fly out there for $600 to review a $200 repair and they knew that. You have to be able to trust your property manager and communicate with them regularly and that wasn’t happening. Real Property Management has always been honest and responsive, and does a good job.” – Rick, client in Indiana
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Eric Worral has owned and managed rentals for over 9 years. Currently, he works in marketing at RentPrep.com, a tenant screening service for landlords and property managers, and co-hosts a
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HOWDOES THISAFFECTME? Don’t own property in Seattle? The issue of including criminal background
podcast, “RentPrep for Landlords,” where he shares tips and insights on managing your rental properties.
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