Apr 12, 2013

Posted by in Real Estate | Comments Off on Property Managers Implement Tenant Service Agreement

Property Managers Implement Tenant Service Agreement

Not all landlords are able to actively manage their properties. When this happens they turn to a property management company to enforce the Tenant Service agreement. The best property managers know all of the legal requirements of advertising a rental unit and selecting a tenant for it. They also understand the economic impact that vacant residential units can have on the owner’s cash flow. Therefore, while they work to uphold the law and protect the landlord’s interest, they are also working to fill every vacancy as quickly as possible.

Screening applicants and selecting the best tenant is one of the most important jobs a property manager does for an owner. They must be completely unbiased when it comes to an applicant’s race, color, or religion. While those requirements are well known, there are other personal attributes that must not be considered as well. They are a person’s sex, mental or physical disability, family status or national origin. As federal and state guidelines change, the property management team must comply with the revised standards.

Property managers have every right to assess an applicant’s rental history, credit, and criminal background. Most Tenant Service agreements require good rental references for at least 6 of the prior 18 months. This requirement will often be waived if a person has just sold their home. Applicants can expect to be denied a unit if they’ve already been evicted from a unit, damaged their last residential home beyond normal use, or conducted illegal activity there. Anyone who left a rental agreement without paying the full rent due, will not have an easy time finding a new home. If a previous landlord refused to rent to them again, that will also make it hard for them to pass a rental history check.

Credit history is used as an indicator that the applicant will be able to pay the rent consistently and in a timely manner. Their should be no late payments, bankruptcy discharges, collection activity or repossessed vehicles in the report. Criminal background checks are used to protect the safety of other people using the building. There should no convictions for violence or arson, drug or gang activity, stalking or vandalism.

The best property managers know all of the legal requirements of advertising a rental unit and selecting a tenant for it.

Share

    Pin It on Pinterest

    Shares
    Share This