Rental Services, Inc. 2019 March Newsletter


If you are not paying attention to what’s going on with your state legislature, it’s time to wake up and get in the game. Rent Control was passed in Oregon and there is already talk about expanding it across the nation. Colorado moves closer to passing rental application reform with HB19-1106 and will impact fees and possibly time frames for criminal record usage.

Recently the state of Oregon became the first in the country to implement a statewide rent control law. The new law prevents property owners from raising the annual rent more then 7%. Many groups are looking at this as a quick solution to provide affordable housing in markets all over the country.

Rent control is under serious consideration by law makers all over the United States. If rent control legislation is passed everywhere it is currently being discussed nearly 1/3 of the country’s rental housing would be impacted by rent control.

Advocates site California, Maryland, New York, New Jersey, and Washington DC, as providing the largest source of affordable housing based on current rent-controlled units. It is believed that rent control programs are a cost-effective method to increase affordable housing.

On the other side of the argument is the property owner who is directly impacted by rent control. Some property owners believe rent control is unconstitutional and is a form of privatized welfare. Why should a property owner have to accept below market valuation for rent based on the government’s desire to show compassion towards a tenant? What’s next? If a person owns a restaurant should they be limited to how much they can charge a patron for a meal? We wouldn’t want anyone to go hungry because they can’t afford the price of a meal.

If you would like to discuss rent control in more detail make sure to visit the Rental Services, Inc. Facebook page and leave a comment.

On a different note, Colorado HB19-1106 has been picking up steam. The bill to address the application process currently has bi-partisan support and looks like it is going to pass.

The bill addresses charging an application fee that is equal to the actual screening fee. If more money is collected, then the actual cost for the background screening report the balance would need to be refunded back to the applicant. The bill will also make it illegal to charge different screening fees to applicants applying for the same or similar rental unit.

A receipt for the application payment will need to be given to the applicant. The receipt can be given in an electronic format unless the applicant requests a paper receipt.

The bill will address the time frame for usable records in the background check. The Fair Credit Reporting Act (FCRA) sets limits of seven years for credit information and Colorado CRS 12-14-.3-105.3 (1)(e) states No consumer reporting agency shall make any consumer report containing any of the following items of information: (e) Records of indictment or conviction of a crime that, from the date of disposition, release, or parole, predate the report by more than seven years.

My biggest concern is the proposed limitation of the criminal time frame to five years. I’m always against limiting the amount of information a client can receive to make an informed business decision.  

Adverse notifications will be required as part of HB19-1106 and is already addressed under the FCRA.

I would recommend preparing for HB19-1106 to pass. Make sure you have documentation that explains your application fee. Adding a section to your rental criteria would meet this requirement. Adjust your application fee to match your screening fee and provide a receipt. If you use the RSI Quick App it will send out an electronic receipt or if you use the 2ply RSI paper application the yellow copy can act as a paper receipt. Familiarize yourself with access to the adverse action noticed provided with each RSI background report and when necessary, send them to the applicant.

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