Tenant Screening

[John Kallas]

Hi, I need to have a formal application and tenant screening resource.  I saw the tenant screening service recommended by BP - SmartMove.  I don't think it will work for me.  My properties are located in Dayton, OH and my 1 BDRM units rent for $375.  SmartMove won't work because most of my tenants make $8/hr - $12/hr and are not internet users.  I need a written application that I can submit for a low fee.  In the past I would just review their background for free on local court websites.  I required a photocopy of photo ID to verify their info.  I also required photocopies of paystubs to verify monthly income is 3x monthly rent.  I still feel like that strategy fits my marketplace, but I am worried about the legalities of tenant screening.  What is appropriate?

[Kimberly H.]

@John Kallas 

I just switched from a screening service someone mentioned above to NTN once I figured out NTN caught more stuff than the other (an applicant last year gave me an NTN someone else pulled on her and I pulled the other, NTN had more info).

That woman you met with sounded like a definite PITA!!

As far as legalities go, you need to have a written criteria and stick to it. Have a clause that says, "No one who has demonstrated combative or argumentative behavior will be approved".  To lower your chances of being sued, try to be as nice as you possibly humanly can when you reject them. You don't want to piss them off so they run to a lawyer out of revenge. 

I *always* look up potential tenants on the online county lawsuit databases because I always find more info that way than any screening company I have tried has. I only do this after I have a paid for application since there are way to many tire kickers in my area.  If I find that an applicant is fighting with everyone, getting sued and suing people, getting pulled over multiple times for DUIs, not having insurance, etc., I seriously doubt they are going to get follow my rules about written approval to modify the residence or honor my pet or smoking policy.

In this case with this lady you just denied, that's a tricky one.  When she asked for the application I would have responded that although I really appreciate her feedback, that I would not be changing anything with the tub or floor or lowering the rent.  If she fights with you about it, there you have your combative and argumentative behavior. But I wouldn't deny her right on the spot.  If she still applied and didn't fill out the application completely and called to inquire later, assuming your application says it needs to be completely filled out to be processed, if it wasn't let her know that it wasn't and that's why you didn't process it and offer to refund her app fee. Or that she lied on the app (if she did), that you found contrary information online/via screening, and that that is an automatic denial (good reason to not upfront let her know what you know via the online records). Make sure you issue the required denial letter.