Rental Services, Inc. 2019 July Newsletter


July is here and that means everyone doing business in Colorado has less than 30 days to comply with HB 19-1106. I feel that it was important to address this issue again because it is going to directly impact many RSI Quick App users. If you are located or do business in other states, I recommend implementing many of the Colorado requirements as part of your general business practices. Many states have passed similar legislation or have it on the horizon. On a different note, several clients have asked for referrals to other multi-family vendors for bids or recommendation.


Do you need a recommendation for a painting company, management software, carpet cleaning or towing? Rental Services, Inc. has been working with property owners and management companies since 1984. If you have a need other than background checks, we probably know someone. We literally have several directories covering every business type in the multi-family industry. Just this week I referred a client to a law firm we’ve worked with for over 20 years. Another client is retiring and wanted a recommendation on a fee management company. At RSI we think of ourselves as a trusted industry partner, who can help clients do more than just background checks.

If you do business in Colorado, HB 19-1106 will impact how you interact with applicants. It’s important that you evaluate the type of screening report you’re currently using and how you will handle the application process.

The new law will be implemented on August 2nd, 2019 and impacts how much you can charge an applicant for the background check. This fee is often referred to as an application fee. Many property owners and management companies routinely charge more than the actual cost of the screening report. Starting in August, this will be illegal. If you use the RSI Quick App and it is set to charge more than the actual screening fee you will need to contact us to change the fee. RSI will not change any fees without written authorization from you.

The applicant must be provided written criteria that details your standards and grounds as to why the applicant could be denied. It is recommended that they sign the criteria when they complete the rental application. If you use the RSI Quick App you can send them your criteria in an email when you send the link, post it on your website so they can review before applying or it can be added directly to the RSI Quick App. If you want criteria added to your custom link it needs to be sent ASAP. If you wait until August 1, 2019 changes will not be completed in time. Some clients may have to have new links built and it will require additional time. Please help us help you, by sending changes before the deadline.

All screening companies will no longer be able to report criminal records that are older than five years before the date of the application. The law also makes it illegal to use arrest records. The exception to the five-year rule will be any conviction pertaining to methamphetamine distribution or preparation. Any conviction requiring registration as a s*x offender. Crimes classified as a homicide in CRS 18-3-101 and Stalking as described in CRS 18-3-601. Records that are exempt from the five-year rule will be covered by Colorado CRS 12-14-.3-105.3 (1)(e) – Reporting of information prohibited. The law states, No consumer reporting agency shall make any consumer report containing any of the following items of information: (e) Records of arrest, indictment or conviction of a crime that, from the date of disposition, release, or parole, predate the report by more than seven years.

Currently only twelve states restrict reporting information on any case older than seven years.  These states include California, Colorado, Kansas, Maryland, Massachusetts, Montana, Nevada, New Hampshire, New York, Texas, and Washington.

The last requirement is written notice of denial. The Adverse Action notice will need to include the reason why the applicant was denied. If you use the Insta-Chek Scorecard and they do not pass the scorecard you will need to give them a copy of the report. The Adverse Action notice and Consumer Copy Report are available on the RSI website.

Violation of the new law will result in paying 3 times the application fee, court costs and reasonable attorney fees.



Comments

Post a Comment

Popular posts from this blog

Renting To Young Adults

I recently read an opinion from a person in the apartment industry that I found to be interesting. He states that he has seen an alarming trend of younger and younger debtors sent to collection by apartment communities. People 18 and 19 years old may legally sign a contract but most won't understand or remember it. If no co-signor or guarantor is on the lease many people of this age are not responsible enough to be given control of an asset valued in the tens of thousands of dollars. I agree on face value. However, if you have strong rental criteria in place the age of the applicant shouldn’t matter. When your tenant screening company conducts the background check they should be verifying income, rental history, credit, evictions and criminal records. Match this information up with your criteria and you increase your odds of getting a good renter regardless of age. Quality tenant screening and criteria decrease the chances of renting to individuals who can’t pay the rent. 
Read more

Rental Services, Inc. August 2019 Newsletter

Each day I talk to current and future clients about background screening and other industry related topics. The one question that I’m asked on a regular basis is what is the most important part of the background check? After I explain how every part is important and how each individual piece of information is needed to make an informed business decision, we talk about Forcible Entry and Detainers (otherwise known as an “FED” or “eviction” lawsuit). In my opinion an applicant who has a verified eviction is a high-risk renter. At Rental Services, Inc. we feel an eviction search is so valuable it is included with almost every screening package we offer. Industry studies have shown that applicants with an eviction are three times more likely to have another eviction and have double the number of apartment related collections.   At one time eviction records showed up on the credit report. However, on July 1, 2017, Equifax, Experian and TransUnion began to exclude most public t
Read more

The election and you!

Hello Apartment Industry Advocates! With the election a mere five weeks away, it seems appropriate to devote this edition of the Apartment Industry Mobilization Service (AIMS) communication to our role as advocates for the apartment industry in the upcoming election. There is no denying it – this year’s election has the capacity to impact every level of government. Not only will control of the White House and House and Senate be decided on Election Day, but 11 governors and numerous state legislatures, city councils and mayors’ races, 166 statewide initiatives in 35 states and a staggering number of local community questions will also be determined. Although media attention may be focused on the presidential election, virtually everything federal, state and local policymakers do, or don’t do, impacts your business and your bottom line. So, no matter which side of the political aisle you’re on, your participation and vote on all these ballot items are vita
Read more