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 tax lien and all civil judgment (eviction) information that didn’t
meet National Consumer Assistance Plan standards.
When an eviction record is found it will often include
information on who filed the eviction, the reason for the eviction and the balance
owed by the former tenant.
Some companies only provide eviction filings vs actual
judgements. The eviction filing is when the person is late paying rent and is served
a notice and sent to the courts for the eviction process. Often the tenant pays
or moves and that’s the end of the process. A judgement is obtained when the
eviction process is complete, and possession of the unit is granted to the
property owner. A similar comparison showing the difference in the two types
would be criminal arrest records (eviction filings) vs criminal convictions
records (judgements).
Rental Services, Inc. only uses actual judgement records and
the RSI team of credit investigators manually verifies the records with the
company or person who filed the eviction. Very few companies do this additional
step and will only provide you with a record match and leave the verification
up to you.
Evictions can come from more than failure to pay rent. Criminal
activity, excessive noise complaints or other nuisance behavior can be grounds
of eviction.
Knowing the applicant has a history of problems with other
property owners is extremely helpful when making a rental decision. Making sure
the applicant will pay on-time, take care of your asset and be a good neighbor
to other residents is invaluable.
Do you use the RSI Quick App?
If you’re not currently taking advantage of the RSI Quick
App you might want to start using it. The online rental application is an easy
was for applicants to apply online and pay the application fee for you. Using
the RSI Quick App saves you time and money.
Comments
Post a Comment