According to Fair Housing Act of 1968, it is illegal for property owners and property management to refuse tenancy to an individual based on religion, sex, race, national origin, disability, or family status. However, a property manager has to consider the prospective tenant's finances and ability to pay the rent. Therefore, property management should have strict policies based on consistency and fairness, regarding screening of prospective tenants. Here are some important criteria that can be implemented into the screening process.
Establishing Income Level Requirement
This might involve extra work, but it will save a lot of time in the end for a property manager. When there are different types of properties, or different types of units on a single property, property management can work out the minimum income a prospect should be earning for renting the particular unit. For example, if there is a one-bedroom unit that has a monthly rent of $600, the minimum income requirement could be fixed at $1,800. All applicants for such a unit whose income is below the required level are to be declined without exceptions.
Policies for Reviewing Credit Report
A credit report is a strong indicator of the prospective tenant's finances. However, there are many ways to judge a credit report, especially when the economy is not doing well. Many property managers consider various aspects, apart from the figures shown in the credit report. Hence, if you are willing to accept a tenant with a low credit score, while considering other aspects, then you should consistently apply the same policy to all prospective tenants. Once a particular standard is fixed, it should be uniformly applied without any exceptions.
Considering rental history of a prospective tenant is quite important, as it provides a picture of what type of tenant the person has been in the past. An application can be legitimately denied if the rental history shows, damaged homes, evictions, and/or consistent late payments of rents. Again, if you are basing your policies on rental history, then they should be consistently applied for all, and not be biased towards a specific group.
Job stability is an important factor to consider while screening prospective tenants. Evaluating employment history of the individual will provide information about how long the person is able to hold on to a job. However, it is difficult to frame an exact policy about reviewing job history, as many factors can come into play regarding job changes. Individuals, who are just starting out on their career might have to change jobs to find better opportunities according to the experience they have gained.
Secondly, a person who has recently moved into the area might not have enough time in a particular job, which might indicate instability. Hence, it is important to carefully chart out all types of exceptions and apply them uniformly.
While screening tenants it is important not to take cultural background, disability, familial status, sex, or race into consideration. Secondly, whatever standards are adopted for screening various other aspects, they should be uniformly applied to all.