Is this standard practice of PMs in Arizona?

Question

We are looking for a professional property management company to manage our SFH rental property in Arizona. One PM we talked to (and liked in all other aspects so far) has a practice of not sharing any detailed information about the potential tenants that will be placed. Their practice is to just share a very very brief summary of the final tenant they place. And the summary is basically the name of the tenant, if they have pets, and few other captions about the remaining screening parameters with a notation of "meets criteria". No additional paper work or evidence of background checks performed, or even what the credit score is. Is this common practice in AZ? They do provide eviction guarantee for non-payment of rent.

We have another rental property in a different state , managed by a PM, but we have always been provided all the paperwork of the background checks done. The final say on who gets placed is ours.
So, this approach is completely new for us. Trying to get feedback from folks here on how you would feel about it, if you were the property owner?

Nathan Gesner · Answer

Yes, this is how a professional operates.

I manage around 400 rentals. My office processes nearly 1,000 applications per year. What experience or knowledge would a private landlord possess that could possibly add to my screening process? Nothing.

I am a professional, and I know how to choose quality tenants without violating Fair Housing discrimination laws. I do not have the time to involve the landlords in the decision-making process, and there's no benefit to it for me or the landlord.

Once selection is made, I will notify the landlord that a tenant has been selected. Example:

"The tenant is a husband, wife, and one child. They signed a one-year lease starting August 15th for $2,350 per month."

That's more than enough.

Drew Sygit · Answer

@Rajesh Sharma why do you want the tenant info?

What specifically are you gaining?

The only time we get owners involved is when they are putting pressure on us over length of vacancy and then we'll discuss applicants a bit deeper so they can see we're screening to protect them.

Adam Bartomeo · Answer

We share this information with our owners when they request it but to avoid any discrimination with the Fair Housing Act we do not allow the owners to make the decision. So, if they meet our standards we let the owner know that we are placing the tenant and if they request info we send it to them but they do not get to say yes or no. If the potential tenant is close to our standards but does not pass the qualifications than we reach out to the owner (only the owners that want to be contacted) and let them make the decision.

Rajesh Sharma · Answer

Thank you, everyone, for providing your reactions. It helps to hear different perspectives.

Bill B. · Answer

It used to work that way maybe 15-20 years ago. I used to get a call, saying. We have an applicant with thsi credit score, here’s why it’s not perfect, they make thsi much working at this place, etc etc.

About 10-15 years ago it became: Here’s a copy of your signed lease and your money. We agree ahead of time on rent to be charged and minimum/maximum lease terms, that’s about it. Occasionally I’ll get an email saying tenant would like “X” to sign the lease. (Pet door, new lock, whatever.) Sometimes they offer to pay for it, sometimes they want it thrown in. That’s about it.

I hired a PM because I don’t like screening people, I like owning properties. It turns out they also kept me legal, charged more late fees than I would have, and raised rent more than I would have. Pretty much paid for themselves

Ps. Had a 6 year tenant move out last week after falling on hard times and failing to pay rent. Place is a disaster, needs 2000sf carpet, repaint, holes in walls/doors, new blinds, massive junk haul out, and cabinet doors reattached/replaced/repaired. I approved it Thursday. They said they hope to have it done by Monday, Tuesday at the latest. How long does that take without a PM? Reduce vacancy and time you have to work on it. Even with this “big problem” (my worst move out in 10+ years) I won’t spend an hour this month on my rentals.

Is this standard practice of PMs in Arizona?

Is this standard practice of PMs in Arizona?

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