Background Screening

In this month’s newsletter, I thought we would discuss password security. About 93% of all Rental Services, Inc. clients access the RSI website. Every person who uses the RSI website is issued a unique username and password to login to the website. Some use the site to order reports and others simply use it to review completed reports. During a recent RSI team meeting it was brought up that we continue to receive phone calls from clients about login issues. As we explain the steps to recover or reset the password using the built-in tools from the website, we often find the client is sharing login information with someone else in their office. The person sharing the password doesn’t know the answers to the security questions and they can’t reset the password. This causes problems for everyone involved. No one using the RSI website should share their login information with others. It is a direct violation of the RSI Services Agreement and the credit bureaus require us to su...

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 publ...

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...

Property management Company Settles for $105,000 Another property management company was recently sued by a former tenant. A&G Rental Management chose to settle a lawsuit with a previous tenant for $105,000. The suit claimed the property management company provided the tenant with deplorable living conditions. The suit against the property management company claimed the tenant had to live with hypodermic needles, rats and overflowing garbage at their apartment community. The tenant consistently complained about the conditions over their lease term, but the property management company never addressed their concerns. The tenant decided to file suit for emotional harm after they received several move-out charges from the management company totaling $1,500. The ex-tenant felt these charges were unfounded based on the living conditions and the move-out fees. It seems like this lawsuit could have been avoided by taking two basic steps. When buying real estate, t...

Rental Services, Inc. is proud to announce that we’ve entered into a strategic partnership with a leading property management software company. This partnership allows RSI to offer cloud-based property management software to each of our clients. RSI Property Management Software provides solutions to various aspects of property management. When using the RSI Property Management Software, all monthly charges and late fees are automatically billed to the tenant. There is no need for Manager involvement or potential for human error on recurring charges. RSI Property Management Software ensures that your tenants are being billed accurately. Tenants are automatically billed based on your customized rules ensuring late fees are applied. Post vacancies to popular website like Apartments.com, Apartment Finders, Apartment Living, Rent Jungle and Oodle. Track work orders and maintenance requests online from the web-based control panel. Let Tenants pay rent online using ...

Over the past few years Rental Services, Inc. has noticed more companies transitioning to the use of applicant tracking software, also known as property management software. These software products handle the general bookkeeping and keep track of a resident through the complete rental cycle. Many of these software platforms have an additional option that provides automated tenant screening services for an extra fee. RSI has also noticed these companies using an instant nationwide criminal report. I’m writing to clarify why the automated tenant screening provided with this type of software and the nationwide criminal records are an inferior product compared to the reports provided by Rental Services, Inc. and why using them is not in your company’s best interest. Let’s start off by looking at Eviction records, they tell you a lot about a perspective renter. The first eviction can be traumatic for the renter. The second eviction doesn’t hold the same mystery. It’s like watching a ...

Are you aware of the Gramm Leach Bliley Act? You should if you’re a client of Rental Services, Inc. or you access personally identifiable information as part of a resident screening report. We’ve posted a copy of the Gramm Leach Bliley Act on the RSI website and we recommend taking a moment to review the complete document. Rental Services, Inc GLBA link.

There are a growing number of online options available to individuals looking for background information.   The increasing accessibility of online background screening has fostered the misconception that these checks are easier and cheaper than ever before…and that the information available through an automated platform is of the same quality as that obtained through a qualified credit or background investigator. We live in a society accustomed to having a wealth of information at our fingertips. The internet is an endless resource for FREE information! However, the plethora of public data does not necessarily make it any easier to generate quality screening information. This is the first problem with online person search products: shockingly poor quality. Online companies are not able to adequately cross-reference for accuracy. The human element is missing, and in that void lays the essential key to quality screening.   An inaccurate address could lead to a complete...

The Justice Department recently announced that a settlement was reached with the owners and operators of an apartment community in Fremont , California . The lawsuit challenged a policy upheld by the complex which prohibited children from playing outside in the common grassy areas. It was argued through this litigation, that the actions of the defendants constituted a pattern or practice of discrimination against families with children residing on the property. Complaints were filed with the U.S Department of Housing and Urban Development by 5 families who claimed to be negatively impacted by the apartment policy. HUD investigated allegations and then issued a charge of discrimination against those responsible for initiating and maintaining the policy. “Federal law guarantees families with children the right to equal access to housing, including full access to their homes’ amenities and facilities,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights D...

A 5-year-old boy revealed to investigators that he intentionally set fire to his home with a lighter Sunday night. He, his mother, and two other children escaped the blaze but his 2-year-old cousin died of smoke inhalation in an upstairs bedroom. Children under the age of 10 cannot be prosecuted for homicide in Pennsylvania, but the boy will be evaluated by Children Youth and Families and court proceedings may result in his being removed from the family. According to Stephen A. Zappala Jr., the Allegheny County district attorney, the landlord had likely violated local ordinance by not maintaining or providing smoke alarms in the rental property. The scene was reported by firemen and neighbors to have been silent, with no alarms sounding at the time of the fire. Mayor Michael Cherepko said 60 percent of the houses in McKeesport are owned by absentee landlords and that many of those landlords allow their properties to fall into a state of disrepair. His administration is working o...

It may appear that your resident has permanently surrendered possession of your rental unit…they have moved the majority of their belongings and returned the keys. If any personal belongings of sentimental or monetary value have been left behind you should use caution before cleaning out the unit for re-rental. The legal parameters regarding the disposal of personal property can often seem vague and confusing to property owners when applied to real world situations. Here are a few helpful points to bear in mind: There are regulations in place to protect the rights of the resident (making a “lockout” illegal). The statutes allow for removal of property under certain, specific circumstances, however, the only way to guarantee that there can be no legal claims against you as the landlord is to go through the eviction process and have a writ of restitution executed by a sheriff. To avoid having to go through the eviction process simply to remove any abandoned belongings, you may get t...

Recent changes to Colorado law have created a ripple effect through many local industries. Amendment 64 legalized the recreational use of marijuana and blurred policy boundaries that were once clearly defined in the rental industry. As a result, there is some confusion over how to best install and maintain appropriate rental policy standards. Here are a few quick facts that are sure to help: Both Federal and Colorado law give power to the property owner to determine rental property policy. A smoke-free policy is still enforceable and can include prohibiting the use of marijuana. Updating policy documentation to specifically reference use (or non use) of marijuana is recommended. Property owners may still require drug testing as a condition of employment   According to Amendment 64, “nothing shall prohibit any person who owns or controls a property from prohibiting or otherwise regulating the possession, consumption, use, or growi...

Keeping information secure is vital. We have recently implemented a new layer of defense to our already solid security platform.   Multifactor Authentication (MFA) makes it more difficult for an unauthorized person to enter our system and access sensitive information. This multi-layered approach requires a combination of two independent credentials: a knowledge factor (something that only the authorized user should know) and a possession factor (something that only the user has access to).   If you are not already using MFA…you should be! We will be contacting clients in the coming months to get you on-board with our new authentication system.   What to expect as you begin using the new system…   You will notice a change when accessing our website only during one of the following: When you login for the first time under the new criteria When you login from a different (unknown) computer When your login from a different   IP addre...

Documented Criteria is Essential when Screening Possible Tenants   It is not only fundamentally important to screen possible tenants in order to protect your property, but how you outline your screening criteria can be essential to protecting yourself. As a landlord, you need only accomplish one easy task, do it consistently, and you can avoid the headache and financial drain of this legal vulnerability. Document your screening criteria . Though your criteria may vary greatly from another landlord’s criteria, all documented criteria should: 1.)    Comply with federal, state and local laws in addition to fair housing requirements. Information specific to Colorado can be found at: http://www.coloradoattorneygeneral.gov/sites/default/files/uploads/identity_theft/CoConsCreditRepAct.pdf . If you are not certain that your criteria are in compliance with regulations, be sure to have an attorney review the screening document and offer advice. 2.)   ...

Issue Number:    IR-2013-79 Inside This Issue:  Low Income Housing Limits to Be Waived For Colorado Disaster Victims WASHINGTON — The Internal Revenue Service announced today that it is waiving certain limitations for projects financed with low-income housing tax credits or exempt facility bonds so that owners and operators of these facilities anywhere in the nation can provide housing to victims of severe storms, flooding, landslides and mudslides in Colorado that began Sept. 11. Because of the widespread devastation to housing caused by storms and flooding, the IRS will temporarily suspend certain limitations for qualified low-income housing projects that house people displaced by the storms and flooding. The action will expand the availability of housing for disaster victims and their families. Further details are available in Notice 2013-63 and Notice 2013-64 , posted today on IRS.gov . The IRS recently announced other relief avai...

As with most things, there are many options available when it comes to screening possible tenants. Today landlords have even more options then ever before and the results and effort required can range greatly from a good ol’ gut check to having tenants supply their own credit reports or digging a little deeper and having a screening company verify application information. You may feel overwhelmed and unsure about how to get the best information for the least amount of money. Having been in the industry for 29 years, RSI employees have seen it all. We have heard countless horror stories about how massively other screening measures have failed a given landlord. And while we always say “go with your gut” the advice is constantly balanced with the addendum “be sure to check the facts”. Here is a step by step guide to accomplishing exactly that: 1.)     Do not put all the power in the tenant’s hands! Many new screening companies offer tenant driven ba...

The Colorado Supreme Court recently ruled that owners and managers of limited liability companies (LLC) now have less exposure to personal liability and no fiduciary duty toward creditors should the company become insolvent. Limited liability companies are primarily governed by each state’s LLC Act and LLC operating agreement. It is in this way that courts across the nation are being asked to determine a standard for LLC accountability. This landmark ruling makes Colorado very attractive to potential owners and managers forming new LLCs and serves as a precedent for other states. The rental industry in Colorado could stand to benefit greatly because of this appealing reduction to personal liability. Existing property owners operating under LLC can now take a deep breath and new property owners will be drawn to the state for its lower risk investment potential. -H. Evans

In April, the Equal Employment Opportunity Commission (EEOC) updated its approach to employee background screening. Many anticipated that the EEOC would be implementing restrictions on the amount of information employers are allowed to monitor when hiring. Outright restrictions would have gone so far as to omit screening for a potential employee’s criminal history. Does an employer have the right to pry into their employees personal lives, in order to establish a pattern of high risk behavior? If a person has a history of theft or violence, do we in the rental community owe it to our residents and staff to be aware of these potential threats and prevent such activity to the best of our ability? Should the EEOC have moved forward with the restrictions, the safety of residents and staff in rental communities would have been greatly impacted. Instead, they recognized a company’s right to conduct consistent and unbiased, job-related background checks thereby ensuring a foundat...

It is the classic nightmare for rental property owners. You do everything possible to protect yourself and your investment from the unscrupulous renter…dutifully screen the applicant for any criminal history…any eviction history…you take a close look at their credit report…you call their references and verify employment and salary. Everything looks stellar, perfect and wonderful…until it isn’t. The worst has happened and you ask yourself: HOW did this person get past all of my efforts weed out high risk residents? The answer is simple…criminals are not above stealing. Identity theft paints these criminals as stellar residents gaining them access to your rental property. Avoid finding yourself mired in nightmare tenancy by following these three simple steps: 1.)     Obtain social security verification in all your screening reports 2.)     Check for valid photo identification on each applicant 3.)     Conduct regular inspecti...

If you believe the world will end on December 21, 2012 you can skip the rest of this article.   However if you’re concerned about the increased number of natural disasters and want to encourage your renters to be prepared you may want to take notes. Many property owners leave move-in gifts for new renters as a way to say welcome.   Why not put together a disaster kit for them?   As hurricanes, wildfires, snow storms and other natural disasters increase survival kits have become very popular.   The cost to setup a complete survival kit may exceed your budget for a move-in gift so start small with some basics.   First you will need a large plastic tub.   Fill it with a basic first aid kit, personal hygiene items, matches in a water proof container and a flash light with batteries.   Make sure to add a survival kit check list so your renters can complete the emergency kit with other items like food and water.   If you need a full list of recomme...