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Landlords: Screening potential tenants

The decision to rent or not to rent to a prospective tenant is a decision that Property Managers and Landlords have to make on a case-by-case basis. The best decisions are those that are supported by good documentation practices, and can include pre-screening, telephone reference checks, credit checks, background check, and income verification.

It is important as a matter of good management to keep detailed records of the decision factors used in selecting an applicant as a tenant. With consistent and fair practice any management decision should stand-up if challenged in a legal proceeding. Here are of 5 examples of management practices that will help you to make and justify, if necessary, a decision to rent or not to rent to any applicant.

Prescreening

The objective of applicant prescreening is to determine the reason that they are in the housing rental market and whether they qualify for subsidized housing, if you are managing government subsidized property.

Some reasons may include: no housing available at present time living with other family members and overcrowded conditions
increase size of family at present time current housing is considered substandard or standard living with parents at present time present rent is 50% or more than current monthly income being evicted. If this is the case, they should be asked to state the reason(s) for the eviction.

The applicant should understand that by submitting their application they are not automatically guaranteed an apartment.

REFERENCE CHECKS:

TELEPHONE REFERENCE CHECK An applicant should be willing to disclose the name, address and telephone number of their previous landlord. Conducting a telephone reference check with the previous landlord could reveal if the tenant could be considered a "model" tenant or not. With just a few questions, you can learn if the applicants have:

- a history of unjustified and/or chronic nonpayment of rent and/or financial obligations, or
- a history of living or housekeeping habits that would pose a direct threat to the health and safety of other individuals or whose tenancy would result in substantial physical damage to the property of others, or
- a history if disturbing their neighbors, or
- a history of violations of the terms of their lease agreements, especially those resulting in eviction from housing or termination from residential programs.

A telephone reference check should record the name of the Person Contacted, the position or title within their Organization, if any and their


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