Should PM be showing me Background checks?

Question

Hello BP,

Should my PM be showing me background checks on perspective tenants?  I have 1 SF home that I rent out.  My PM told me with the first tenant that moved in he would be doing backgrounds but would NOT be sending me the info do to personal info on report such as SSN.  He does give me a verbal run down of there background.  Does this sound right?  I have told him my minimum requirements which he seems to follow but will try and convince me to stray from once and a while.  I do NOT listen.  Let me know your thoughts.  Thanks in advance for your input.

James Wise · Answer

When a company starts running credit reports there are very strict standards in place that they must adhere to or they will loose their ability to run credit. Site visits are necessary to ensure compliance. Things like shredders, locked computers & cabinets are all required. Allowing you to have access to the report could violate some of the rules they need to follow as the tenants are authorizing that company to see the reports not you. They are under strict standards to keep that data secure.

Josue Vargas · Answer

If you want to see this information, have your prospect tenants sign a release of information agreement showing in it that you will also be receiving these reports.

PMs are providing a service that you pay, they should not be telling you what to do, but they should be helping you out to get whatever you need.

If the issue is the means of getting this personal information to you, then he also should know how to encrypt files before sending over email.

Peter Tverdov · Answer

@Scot Sorenson when my PM company does them we do not share them with the clients.

If you’re hiring a PM, let them do their job and trust their judgement/experience, don’t micro manage them.

Shazia Chiu · Answer

As the owner I think I'd want access to the background checks. If the PM wants to withhold sensitive information like SSNs then he can easily redact that, but I don't really see a strong argument for why that is necessary. I imagine that most tenants go into the background check process knowing that the information will be shared with all stakeholders, especially the property owner.

Scot Sorenson · Answer

@Patricia Steiner Thanks for the response.  I had the same thought about the leaving out the SSN.  I will be making some changes to how we operate and communicate.  "if it doesn't work for me, you don't work for me." HAHA I like it. Thanks

Patricia Steiner · Answer

A client of mine purchased several condos in a professionally managed community. The tenant screening company engaged by the PM would only share the background check information with the PM - and the PM would not share it with the owner due to privacy concerns.  The privacy policy given to the tenant by the screening company even stated that the results would only be shared with the HOA.

That didn't sit well with me.  The owner has the greater risk...the HOA has none since payment for their services comes from the owner - not the tenant.  We are now in the process of having that system changed. We will either refuse to use their tenant screening process and use our own - or demand a change in the disclosure practice.

Scot, I recommend advising your PM that if he/she will be assuming responsibility for the tenant and any non-payment/damages/etc, that you're fine with the non-disclosure. But if you, as the owner, have the risk to property, loss of income, and more - that they will need to change their background check disclosure statement/policy - or you'll need to either do the screening through a third party provider and/or find a new PM.

You're the owner and the client.  The PM works for you...did he/see ever consider just redacting the SSN?  Wouldn't that solve the issue?  Remind the PM:  if it doesn't work for me, you don't work for me.

Scot Sorenson · Answer

@Bryan Richardson I do make the final decision based on what he tells me.  I have had to deny people so I feel like he's being honest about the backgrounds.  I just think its a bit strange he won't show me the info. He handles evictions but as we have not had to go down that path yet I'm not sure how that will work.  Thanks for the help.

Bryan Richardson · Answer

@Scot Sorensonare you making the decision if he moves in or not? If so yes I would want to see everything. Also if you handle the eviction you will need there ssn for garnishment.