Depending upon your type of rental property, location of the property and applicable local ordinances and city/county codes, there are some common practices to help manage traffic flow in rental complexes. As example, you could consider:

• Traffic signs, the familiar STOP signs placed at intersections within the complex to require drivers to come to a complete stop before proceeding or signs such as Yield, or SLOW to alert drivers to slow down before proceeding.
• Speed Limit signs posted throughout the complex to alert drivers to the maximum speed in clear conditions.
• Directional Signs, such as One Way Only, may be appropriate for some rental properties with designated entry and exit routes.
• Informational Signs, such as Caution – Children at Play, may help alert drivers to be more cautious when driving in certain areas such as playgrounds or green spaces.
• Pavement Modifications such as Speed Bumps to require drivers to slow down drivers in order to protect their vehicle or Split Ridge Indentations in the road that make tires vibrate alerting drives to reduce speed or correct lane movements. A sign that says Speed Bump Ahead can be an early warning signal to drivers to be prepared to slow down.
• Asphalt Striping Speed Warnings on pavement to alert drivers to Slow Down. A good practice is to directly communicate with residents through social media, a community email, or posted to the tenant portal that safety measures such as speed limits, signage, and pavement modifications have been implemented to help keep all residents safe, reduce accidents, and protect property.

The Fair Housing Act requires all covered multifamily dwellings designed and constructed for first occupancy after March 13, 1991 to be accessible to and usable by people with disabilities. Covered multifamily dwellings are all dwelling units in buildings containing four or more units with one or more elevators, and all ground floor units in buildings containing four or more units, without an elevator.

In order to be in compliance with the Fair Housing Act, there are seven basic design and construction requirements that must be met. These requirements are:

Requirement 1. An accessible building entrance on an accessible route.
All covered multifamily dwellings must have at least one accessible building entrance on an accessible route unless it is impractical to do so because of the terrain or unusual characteristics of the site.

• An accessible route means a continuous, unobstructed path connecting accessible elements and spaces within a building or site that can be negotiated by a person with a disability who uses a wheelchair, and that is also safe for and usable by people with other disabilities.
• An accessible entrance is a building entrance connected by an accessible route to public transit stops, accessible parking and passenger loading zones, or public streets and sidewalks.

Requirement 2. Accessible common and public use areas.

Covered housing must have accessible and usable public and common-use areas. Public and common-use areas cover all parts of the housing outside individual units. They include, as examples, parking lots, storage areas, indoor and outdoor recreational areas, lobbies, mailrooms and mailboxes, and laundry areas.

Requirement 3. Usable doors by a person in a wheelchair.

All doors that allow passage into and within all premises must be wide enough to allow passage by persons using wheelchairs.

Requirement 4. Accessible route into and through the dwelling unit.

There must be an accessible route into and through each covered unit.

Requirement 5. Light switches, electrical outlets, thermostats and other environmental controls in accessible locations.

Light switches, electrical outlets, thermostats and other environmental controls must be in accessible locations.

Requirement 6. Reinforced walls in bathrooms for later installation of grab bars.

Walls in bathrooms must be reinforced so that grab bars near the toilet, tub, shower, and shower seat, if provided, can be added later.

7. Usable kitchens and bathrooms.

Kitchens and bathrooms must be usable, that is, designed and constructed so an individual in a wheelchair can maneuver in the space provided.

If a housing project receives federal funding, Section 504 of the Rehabilitation Act of 1973 has additional requirements in addition to the federal Fair Housing Act accessibility requirements.

You should also research Americans with Disabilities Act (ADA) requirements to determine what other requirements may be applicable to your properties.

There are many issues that need to be researched before beginning a construction project. The following are just a few of the issues to consider.

Scope of Work

You should first define your project. A project description is the scope of work to be performed. The scope of work should identify specifically the work tasks within the project, including material specifications. Detailed, comprehensive descriptions should be provided for the quality, brands, models, and colors of project materials as well as code requirements for materials such as lumber and electrical components.

The scope of your project may be the most important consideration. Without this clear definition of the expected work, detailed for materials, tasks, and timeline, any contractor you interview can’t be sure what the job will entail and therefore may choose not to bid on your project.

Scope of work is important for comparison purposes of bids or estimates from different contractors. More detail rather than less detail will be to your benefit to ensure the work performed is the work you wanted done.

Starting and Estimated Completion Dates
In addition to a firm beginning date and expected completion date, consideration should be given to inserting a timeline that lists critical milestones. Depending upon the complexity of the project, the locale, and materials availability, consideration should also be given to extension of critical dates if warranted by specified conditions.

Cost and Payment Schedule
In general there are two types of cost and payment arrangements. A bid is considered a fixed-price agreement whereby the contractor bids for the job and completes the job for the quoted amount. An estimate is a cost-plus arrangement whereby the contractor calculates the final bill from  time and materials associated with project plus his overhead and profit.

The price and payment schedule should indicate how much you must pay at the start of and at specified intervals during the project and at completion including any deposits due at signing..

You may want a requirement that the costs for the job components are not to exceed a specified amount and that any cost overruns are the responsibility of the contractor.

Change Orders
Be aware of the contractor’s policy for change orders. A change order is a written agreement to alter work described in the original scope of work, whether it is an addition, deleted, substitution, or modification. If a deviation is needed from the agreed upon scope of work, you will need to discuss options with your contractor, and jointly agree in writing to the change order.

Unforeseeable Conditions or Problems
You may want to consider requiring a contingency for handling unexpected or unforeseeable problems that might arise during the course of project construction. The contingency should specify in detail what will be done in event of such problems, including selection and approval of substitute or equal materials and negotiation and adjustment of project costs.

Dispute Resolution
You should have a good understanding of how the contractor will handle problems, such as mediation and/or arbitration.

Tenant screenings are the tools to assess the applicant’s potential risk to the landlord’s business. Reference checking of the applicant’s current rental housing and his past rental history is an essential tenant screening. There is no better source of direct information regarding a tenant’s interactions with a landlord and neighboring tenants than reference checking with his past landlords.

Landlords understand the business of the landlord-tenant relationship and the policies and practices to protect that business. A landlord to landlord discussion of a former tenant who is now an applicant for a new rental can provide a frank exchange of information that is needed to evaluate the potential risk of lease default in a future tenancy. The fact that each landlord understands the risks in property management and can evaluate risk in a similar manner makes checking past rental history a valued risk management screening tool. A brief interview with an applicant may indicate a good match between the housing needs of the applicant and the landlord’s rental property. However, an interview with a past landlord as a rental reference may reveal details of a year-long rental relationship that tell a different story.

Reference checking of rental history is a simple but an important screening to help assess a tenant’s past performance in complying with lease terms and conditions, rental rules and regulations. Calling landlord references to determine whether the applicant satisfactorily fulfilled his lease obligations is a business safeguard. Failing to conduct all due diligence on applicants has the potential for claims of landlord liability and negligence.

Reference checking with a current landlord and past landlords is a verification process to identify red flag issues as well as to confirm the truthfulness of information supplied on the application. Some applicants hope that a landlord will be too busy with other matters to check rental references and the applicant can avoid having to explain a negative reference or a pending eviction.

Applicants wanting to withhold rental history may provide false or incomplete information such the name of a landlord/property manager or street address to prevent landlord reference checking. Applicants may name their friends as landlord references in order to conceal previous problems with a landlord. Research and verification is required to make sure the reference named on the application is the person who is actually the landlord/manager and confirm that the person is the appropriate party to verify past rental history. Independently researching the name of the landlord/property management company and the rental property address can be done using local and online public records. Having researched information before contacting the landlord/manager for an interview allows the landlord to be alert to false or misleading information. Legitimate landlords have knowledge of rental information that a person posing as a landlord would not know. Verification of the full name of the applicant to the full name of the former tenant is an important identity screening, particularly if the applicant has a common surname or generational suffix.

Current Landlord

Contacting the applicant’s current landlord may be informative regarding an impending eviction, serious rent default, or other lease violations that have been noticed. Some landlords are reluctant to contact the applicant’s current landlord fearing that the current landlord would provide positive feedback just to get rid of a problem tenant. However due diligence responsibilities require the landlord to make good faith efforts in qualifying an applicant.

If the applicant only lists his current landlord with dates of tenancy going back five years or more, it is still a good idea to call the landlord to confirm dates of the tenancy, that the tenant qualified each year for renewal and a satisfactory reference will be given.

An applicant may come prepared with a letter of recommendations. The landlord should still contact the rental reference to make sure the letter is legitimate and verify any other information provided by the applicant on his application or during an interview.

An applicant may request that the current landlord not be contacted. The applicant may not have given notice or may not want the current landlord to know he is looking. There is also the possibility that the applicant thinks the current landlord will give unfavorable information, which may or may not be justified. While the request is understandable, the landlord should adhere to his tenant screening policies. If one exception is made, other exceptions might follow. However, the timing of the decision to contact the current landlord could depend upon whether the applicant meets other qualification criteria. If the applicant fails to meet minimum criteria, there is no need to continue the process. If the applicant meets criteria, the current landlord should be contacted. Any information obtained from the landlord interview would be analyzed with information obtained from other screening reports for final evaluation.

Past Landlords

Many landlords require an applicant to provide rental history for the past three to five years. Usually that timeframe will provide at least one past landlord reference in addition to the current landlord. If the applicant has been a serial renter, moving quite frequently, that information may be of significance to some landlords who may choose to contact all past landlords.

In conducting rental reference checks, the best reference is a past landlord, not the current landlord. A past landlord will usually be open to questions and honest in his answers regarding the tenancy, since there is no longer a landlord-tenant relationship. If the past landlord was left with rent default or property damage, that information could be grounds to reject the applicant.

Some landlords may be reluctant to provide information even with the assurance that there is the applicant’s signed release of information. It may be personal reluctance or stated policy. At the least, a landlord should be able to confirm dates of tenancy, rent history, and security deposit amount. An important question is whether the landlord would be willing to renew this tenant. The answer or choice of words used may provide a valuable clue regarding the potential risk of installing the applicant as a tenant. The landlord’s answer, whether positive or negative, should be analyzed in context of that landlord-tenant relationship.

The willingness and extent of the current and past landlord’s cooperation may be dependent upon the approach the inquiring landlord takes during the interview. Most landlords will extend the courtesy of honest answers to the questions asked and expect the same consideration if they were to make a similar call in the future.

No Previous Rental History

An applicant applying for his first rental does not have a rental history, but that should not mean the applicant must be automatically disqualified or assumed to be less qualified than a tenant with years of rental history. A landlord may look to other references such as work references and personal references to help qualify the applicant. Standard tenant screenings for credit and background checks must still be conducted in accordance with applicable laws.

Interviews

Before conducting an interview, a landlord can prepare a list of questions to ask. Being prepared with a script is professional, courteous, and efficient. It also helps to ensure all questions are asked and in the same manner with each reference. Answers to the questions can be recorded on the worksheet and serve as written documentation to be placed in the applicant’s file.

Reference Questions

Information obtained through landlord references should be assessed against information obtained through other types of tenant screenings. A landlord must keep an open mind regarding any mention of personality conflicts, subjective feelings, or personal preferences as expressed by a past landlord. A positive reference by a past landlord does not necessarily mean a trouble-free tenancy. A decision to offer tenancy must be based on all objective data collected by the landlord’s tenant screening process.

A landlord should make sure there is no rush to offer tenancy without sufficient information and analysis of data. Equally a landlord must be sure there is no unintentional violation of fair housing laws by extending preference, privileges, or waivers of rental policies to certain individuals in certain circumstances. A policy of non-discrimination must apply to each and every applicant so that tenant screenings are conducted in the same manner, in the same way for all applicants.

Simple, direct questions may provide enough information to advance or reject an applicant. However, the manner in which questions are asked can influence what information is returned or how much information is returned. As an example a close-ended question encourages a short answer, generally a “yes” or “no” answer. An open-ended question encourages more explanation by asking for details. Open-ended questions facilitate clarification of a response while a closed-end question may just be a matter of confirmation. At no time should a question be structured to lead a respondent towards an answer that could be construed as discriminatory or biased.

When interviewing rental references, there are some key areas that many landlords focus on, such as:

• Identity verification
• Beginning and ending dates of tenancy
• Stated reason for leaving
• Required notice given
• Rent amount and payment history
• Security deposit, amount returned
• Warnings, notices given
• Legal actions taken
• Noise and disturbance complaints
• Property left in good condition
• Roommates
• Pets
• Eligible for renewal

Checking references with the current and past landlords is an essential risk assessment tool and perhaps the strongest indicator of an applicant’s future rental behaviors. A landlord must however evaluate an applicant’s qualifications using a variety of tenant screenings, not just one type of assessment. By using multiple types of screenings, if the tenant has been a problem tenant in the past there will likely be red flags that show up in other screenings.

Setting legally compliant occupancy standards requires careful analysis and understanding of applicable federal, state, and local law, municipal codes, and other published guidance. State and local regulations may differ in their compliance requirements and may be more or less restrictive than federal guidance depending on the circumstances.

Landlords must develop occupancy policies that are legally compliant at the governing level and agency requirements that are appropriate to the rental unit and circumstances. Industry guidance provides setting standards of ”reasonable occupancy.”

Without fully understanding what is considered reasonable in context with federal, state, and local restrictions, a landlord may need to defend his policies against claims of fair housing discrimination.

Fair Housing Act

The federal Fair Housing Act prohibits discrimination in housing because of race, color, national origin, religion, sex, familial status, and disability. Landlords cannot use occupancy restrictions to discriminate based on familial status. The Fair Housing Act’s protections against discrimination on the basis of familial status prohibit restrictive occupancy standards that are used to exclude families with children or that unreasonably limit the ability of families with children to obtain housing.

Familial status protections include:

• Adults in the household who have legal or designated custody of the child or children living in the household,
• A child or children under the age of 18 years,
• A child or children who are members of the household or expected to become household members.

HUD Guidance

A commonly utilized standard for rental occupancy limits has been the Department of Housing and Urban Development (HUD) guidance that “an occupancy policy of two persons in a bedroom, as a general rule, is reasonable under the Fair Housing Act.” Known as the Keating Memo, the guidance provides “that in appropriate circumstances, owners and managers may develop and implement reasonable occupancy requirements based on factors such as:

• Size of bedrooms and unit,
• Age of children,
• Configuration of unit,
• Other physical limitations of housing,
• State or local housing and occupancy codes, and
• Other relevant factors.

Since the number of bedrooms is not the only factor that must be considered in developing occupancy standards, the HUD guidance is commonly referred to as the “two-per-bedroom-plus” rule.

While landlords have some flexibility in developing an occupancy policy by taking into consideration the reasonable policy of two persons in a bedroom plus other relevant factors of a given situation, the guidance does not categorically set an occupancy limit for a rental unit. A landlord cannot know for certain that a reasonable two-plus occupancy limit for a unit will meet federal standards for legal occupancy. Until a landlord analyzes each applicant in each situation, a legal maximum occupancy number cannot be established.

State and Local Laws

States and municipalities can set their own occupancy standards that may be different than federal standards. State and local standards are usually equal to or greater than federal standards. However in some states, occupancy standards may allow fewer people to occupy a rental unit. This could result in a landlord being compliant with state standards but non-compliant with the federal standard if the HUD guidance is applied. Additionally, states or municipalities may designate other protected classes which are covered by anti-discrimination laws.

Building Codes, Health and Safety Regulations

Occupancy standards have historically been justified on the basis of habitability. Too many occupants in the rental unit could cause unsafe or unhealthy living conditions.

There may be local zoning, building codes, and fire codes on occupancy limitations that apply to rental units. Some localities have property maintenance codes to regulate occupancy by providing more specific rules. As an example, the International Property Maintenance Code (IPMC) regulations could be used to set occupancy requirements such as:

• All bedrooms with one person should have at least 70 square feet.
• Shared bedrooms must have at least 50 square feet per person.
• Kitchens and other non-habitable rooms cannot be used as a bedroom.
• Every unit should have an overall occupant limitation based on its overall size:
  • 1-2 occupants: must have at least 120 square feet living room,
  • 3-5 occupants: must have at least 120 square feet living room and 80 square feet dining room,
  • 6 or more occupants: must have at least 150 square feet living room and 100 square feet dining room.

Key Considerations

A landlord may have legitimate business reasons to restrict the number of occupants allowed in a particular rental unit. Legitimate business reasons to restrict the number of occupants in a particular rental unit could include limitations of building systems such as plumbing, electrical, sewer or septic systems that could not accommodate increased use. The age and condition of the rental unit as well as the size and configuration of the unit may also be a limiting factor for occupancy.

If the landlord’s occupancy policy restricts the number of occupants for reasons other than health, safety, or legitimate business need, the landlord may be at risk for claims of familial status discrimination.

A landlord, when developing occupancy standards for his units, must research federal, state, and local occupancy standards to determine how many people must be allowed in a particular rental unit under federal standards, under state statutes, and under local standards. There will be two sets of numbers that must be taken into consideration for occupancy standards, (1) the minimum number of occupants allowed in a particular unit, and (2) the maximum number of occupants as set by state and local health and safety codes based on the size of the rental unit and the number of bedrooms and bathrooms in the rental unit.

A common sense approach is to use standards that are at least as generous as the federal standards, but follow state and local standards if those standards are more generous than federal guidelines.  (Note: While past practices have used a reasonable standard of two people per bedroom, this approach is coming under scrutiny and has been successfully challenged by HUD. It may be a better practice and in some jurisdictions a requirement to use an occupancy standard of two plus one per bedroom rule. As example, the two plus one rule allows 3 occupants for a one bedroom unit. However even this approach must be carefully researched. A landlord may need legal consultation to make sure this approach is the most current thinking regarding legal compliance.

To reduce claims of discrimination, a landlord should document his occupancy policy including how the policy has been set according to guidance on reasonable standards based on unit size, and building limitations.

If a judgment debtor does not pay the judgment creditor voluntarily, the creditor will need to explore other ways to collect his judgment. The creditor must first discover whether the debtor has any assets that could satisfy the judgment. If a creditor does not have information about the debtor’s assets, the creditor may find it difficult or impossible to execute the judgment and collect his money.

To obtain information about the debtor’s assets, the creditor can file the appropriate form with the court of jurisdiction requesting that the debtor appear in court to answer questions under oath about the debtor’s financial status and ability to pay the judgment. The purpose of the debtor’s examination is to collect the information from the debtor that could be used to force payment from the judgment debtor. The judgment creditor can ask the debtor questions about where the debtor works, how much the debtor earns, information on bank accounts, stocks, and other income sources, real property owned, the location and value of the real property, mortgage debt, debt owed to others, personal property such as motor vehicles and anything else of value that could be used or sold to pay the judgment.

If a creditor wishes to examine certain documents, the debtor could be served with a discovery subpoena to require the debtor to bring the requested documents to the examination hearing.

As example, documents that could be requested:

• Documents that show proof of income, such as earning statements from most recent paychecks, proof of unemployment compensation, and documents showing public assistance payments;
• Current bank statements from all banks or other institutions where the debtor has or recently had an account of any kind;
• All deeds, leases, contracts, and other documents representing any ownership interest in real property, and all deeds of trust/mortgages or other documents showing encumbrances of any kind on real property;
• All stocks, bonds, or other securities of any class owned, including options to purchase any securities;
• Titles to all motor vehicles, watercraft, and aircraft owned;
• All life insurance policies in which the debtor is either the insured or the beneficiary;
• All promissory notes held by him and all other documents showing any money owed to him either now or in the future;
• All financial statements furnished by him within the past 5 years;
• All deeds, bills of sale, or other documents prepared in connection with any transfer made by him, either by gift, sale, or otherwise, within the last 5 years;
• A schedule of all regular expenses paid by him, such as installment debts, food, utilities, etc., including the amount paid, the payee, and the amount of debt owing;
• All documents showing any interest the debtor has in any pension plan, retirement fund, or profit sharing plan;
• Federal income tax returns for the last 5 years whether filed individually, jointly, or under a partnership or corporation; also any W2 forms received for those years;
• Driver license and social security card;
• All credit cards; and
• Other items.

If the debtor fails to appear for the examination hearing after being properly served, the creditor may request that the judge issue a bench warrant for the debtor’s arrest.

In most states the landlord or agents of the landlord may access rental property for the business purposes of inspection, repair, alterations, or improvements provided the landlord complies with statutory notice requirements. This could include access to the rental property for contractors, tradespersons, or service technicians. The conditions for notice requirements and reasonable hours of access apply for any access to the rental premises except in emergency situations.

Generally the landlord must give written advance notice to the tenant of the date and time for entry. If there is no state statute regarding landlord entry and tenant notification, the landlord should follow a guideline of reasonable notice to the tenant and reasonable times for entry in order to avoid claims of privacy invasion or even theft of a tenant’s belongings. The landlord’s lease agreement should contain a clause that details statutory requirements and the landlord’s policy and the procedures for landlord entry to the rental premises.

In many states, the notice period is 24 hours or as specified in the lease agreement. While the lease agreement cannot allow a period shorter than state law requires, if the lease agreement provides for a long period than does state law, the lease agreement prevails.

If a tenant refuses a landlord’s notice to enter, provided the landlord has complied with all requirements by state laws, a landlord could, depending on the circumstances, enter the rental unit. In general the landlord has the legal right to peacefully enter the rental premises to conduct his business during reasonable hours. Some landlords may choose to bring along a witness to observe the work being done and to counter any claims by the tenant of theft or other inappropriate behavior.

Statutes of some states may allow the tenant to refuse a written request for entry, but could require the tenant to prove justification for his decision. If the tenant repeatedly refuses landlord access to the rental unit, the tenant could be held in breach of his lease for failing to cooperate, thus providing a cause of action for the landlord to proceed with an eviction lawsuit. Under no circumstances should a landlord use force or threats to enter the rental unit. If the issue cannot be resolved satisfactorily, a landlord can obtain a court order to allow access.

A lease option is an agreement between a landlord/seller and a tenant/buyer where they simultaneously execute a lease agreement for a specific term, with the agreement giving the tenant an option to purchase the property, but not the obligation to do so. The term of the option need not be the same as the term of the lease, although generally the option period will be less than or equal to the lease period. For example, the tenant as a future buyer agrees to lease the property for one year and has the option to purchase the property by a specified date before the end of that year.

A lease option may benefit some landlords. In a lease option agreement:

• A landlord may be able to generate extra income because a lease option is often written with an above market monthly rent with the excess usually applied to the option purchase price.
• An option fee, usually a non-refundable fee, is paid by the tenant to the landlord as a consideration for the option to purchase the real property at a specified future date. If a tenant does not exercise his right to purchase the property, the tenant is not entitled to a refund of excess rent or option fee.
• Brokerage commissions and other marketing costs related to a future sale are usually avoided.
• Because the tenant expects to end up owning the property, the tenant may take better care of the property.
• If the market declines, the landlord as the seller may be able to sell at a higher-than-market price if the tenant as the buyer still wants the property.
• In many cases, the tenant will not exercise the lease option because the tenant can’t qualify for the mortgage loan or does not have the necessary funds to close the sale. If the landlord obtained premium rent, had a good tenant, and it was not important that the property be sold, the landlord could be ahead of the game.

The rental application process is a progressive series of business practices that collectively assess an applicant’s potential risk of lease default. The process provides opportunity for discussion and disclosure of important rental policies and rental standards that may affect a potential tenant’s decision to submit an application, subsequent qualification to standards, and potentially an offer of tenancy.

Many landlords include the various business practices leading up to an offer of tenancy as part of their rental application process. These practices can include the application, applicant interview, tenant screenings, verification practices, analysis and evaluation of applicant qualifications, and tenant selection. Each of these business practices is a detailed, specific set of procedures according to subject matter and the landlord’s business requirements. The following discussion is part of a series of articles addressing each business practice within a rental application process.

Application Packet

To aid an informed decision by the interested prospect on whether to apply for tenancy, some landlords provide an application packet containing information about the property, important rental policies, qualification criteria, the application form, and instructions for completing the form.  Understanding what is required by terms of the lease agreement, and what deposits and fees are due at lease signing may be a determining factor in a prospect’s decision to apply for tenancy at the rental community of his choice.

Information regarding rental policies and practices as provided in the packet must be compliant with applicable laws and in agreement with clauses contained in the lease agreement. Providing a detailed application packet to prospective applicants has numerous benefits, including:

• Allowing prospects to self-evaluate their ability to qualify to rental standards in order to move forward in the application process or choose to continue their search elsewhere for rental properties. This can reduce the number of unqualified applicants.
• Providing notice and disclosures required for legal compliances.
• Providing notice and disclosure to prospects of important rental policies and procedures.
• Hard copy documentation helps to reduce a prospect’s misunderstanding policies and practices.

As an example, information in the application packet may include:

General information

• Welcome letter to greet prospective applicants and set the tone for tenancy
• Contact information for the rental office (manager name, telephone number, email address, website address)
• List of property amenities and rental services available to residents
• Fair Housing Compliance Statement

Terms and Conditions:

• Important rental policies and practices
• Lease Agreement
• Lease Terms
• Deposits and Fees
• Rents
• Occupancy
• Use of premises
• Guest Policy
• Pets
• Utilities
• Renters Insurance

Qualification Criteria*

• A non-refundable application fee of $XX is due at application submission.
• Every adult who will live in the rental unit must complete an application and consent to tenant screening.
• A current photo identification document is required from each adult applicant, such as a driver’s license, passport, military identification card, state identification card, or acceptable equivalent document.
• Social Security number or Individual Taxpayer’s ID number as required for consumer background reports.
• Employment verification(s) will be conducted.
• Income must be sufficient to meet gross monthly income to rent ratio.
• Credit Check will be conducted.
• Background Check will be conducted.
• Rental Housing history from the previous three years is required, including rental address, landlord name and contact information.
• Landlord References will be contacted for verifications of rental history.
• Financial accounts information may be verified.
• Signed Consent for Authorization and Use of Personal Information for tenant screenings and verifications.

Note: The following rents, deposits, and fees are due at lease signing:

• First month rent,
• Security deposit and any fees or deposits allowed by state law and required by lease terms and conditions, and
• Pet deposit, pet fee and monthly pet rent surcharge if applicable.

Tenant is required to execute the lease agreement within XX hours after being notified of selection and offer of tenancy.

*As applicable by laws, statutes, and ordinances regarding landlord-tenant matters, consumer reports, fair housing, and consumer protections.

Instructions for completing Application Form

Only complete applications will be accepted, Failure to provide requested information and/or providing false and misleading information will be grounds for rejection of the application. If information cannot be verified for any reason, the application will be rejected.

If the form asks for information that is not applicable, the applicant should mark the line item as N/A before moving on to the next field. Applications will be processed in a timely manner in the order they are received.

By signing the application form, the applicant attests that all information provided by the applicant on the application form is truthful to the best of the applicant’s knowledge. Applicant further acknowledges that discovery of materially false information at any time during the tenancy will result in termination of tenancy.

Landlord Use of Application Form

The application form is the document that begins the rental application process. It is the primary data collection document to obtain a variety of relevant information to adequately screen applicants for tenancy. The application form is the most efficient way to collect and organize applicant information in a standardized, consistent format.

A prospect’s decision to submit an application is a voluntary action expressing his interest in becoming a tenant. An application is not a lease contract and therefore is non-binding on a landlord and an applicant. A landlord is not obligated to offer tenancy to an applicant upon submission of application nor is an applicant obligated to accept a landlord’s offer of tenancy during the application process.

A landlord’s arbitrary decisions to accept or refuse to accept an application could result in claims of discrimination.  Accordingly, a best business practice is to accept all applications submitted and process the applications according to the landlord’s stated rental policies and practices.

The information requested on the application form must be business related to the qualification of an applicant for rental housing. As a general rule, a landlord can request any information that would objectively point to the applicant’s ability to pay timely rent and comply with lease terms and conditions. A standard application collects information such as the applicant’s legal name, current address, contact information, email address, Social Security number, state driver’s license information, employment history, income, rental history, and rental references. Applicant information is used to conduct employment verifications, income verifications, credit checks, background checks, verifications of previous rental housing, and landlord references interviews. A landlord should research applicable laws regarding the disclosure of Social Security or other personally identifying tax identification numbers for tenant screening use.

The same information should be required of all applicants by utilizing a standardized form. A landlord uses this information to conduct the same screenings and verifications of all applicants which prevents selectivity and preferential treatment of one applicant over another.

The application or an attachment to the application may contain required landlord notifications and disclosures by applicable laws, statutes and local ordinances. Disclosures could include the landlord’s policy and practices for tenant screening and qualification criteria, standard rental policies, fees and deposits, utility responsibilities, or other property disclosures required by law.

There are state statutes and local ordinances that may limit, restrict, or prohibit certain tenant screenings at time of application or during the screening and selection process. A landlord will need to research current laws applicable to the state or city/county governing his rental property location to develop legally compliant screening practices and, accordingly, associated rental documents for qualification and screening.

A landlord has the obligation and duty to safeguard the information collected on the application form and the screening reports and to use the information for permissible purposes. If the applicant declines to provide his personal information, a landlord may reject the application on the basis that the applicant did not meet rental criteria.

For liability protections and to further manage risk, a landlord should reserve a section on the application for management use only. This section can contain the date and time the application was received, the property address, the rent amount quoted, deposits and fees quoted, receipt of deposits and fees paid at time of application, unit availability date, and requested move-in date. With the applicant’s signature on the application, the document serves as confirmation of oral discussions of rental issues at time of application or during a prior meeting. A landlord should not leave himself vulnerable to a misunderstanding of terms and conditions of tenancy or rely upon the memory of either party as to details of any discussion of move-in requirements.

In a few jurisdictions a landlord is required to accept the first qualified applicant following a specified notification period. It is considered a better business practice for a landlord to select the first qualified applicant rather than the most qualified applicant in order to reduce the risk of a discrimination claim. Showing proof of date and time of application is a first in time practice that provides some protection from claims of discriminatory treatment.

The application form is a risk assessment tool to collect relevant information about an applicant within the parameters of permissible purpose, business necessity, and legal rights. The application process properly conducted and documented can reduce the risk of claims of discrimination in screening and selection of applicants.

There are basic measures the landlord can take for tenant protections to adequately protect entry to rental units and common areas. Since a landlord has no way of knowing if a tenant has made duplicate keys of his rental unit, and whether those keys have been given to outside persons, the very best policy is to re-key every lock each time there is a change in tenants. A new lockset is substantially cheaper than pay an attorney thousands of dollars if a lawsuit is filed regarding the matter.

Keys to the rental unit should be given to the new tenant only after lease signing, receipt of all fees, deposits, and rent per terms of the lease agreement, and completion of the landlord-tenant move-in inspection and checklist. A landlord should document in the tenant’s file the type and number of keys given to the tenant, including entry keys, gate keys, garage doors keys and openers, laundry room keys, and any other keys to landlord provided amenities. The tenant should be required to return all keys at time of move-out because that n indication that the tenants gave up possession.

The cheapest way to eliminate risk is to spend $30 to $40 for each new required lockset or to spend somewhat less to take the locksets to a store which will rekey locks at a significantly even lower cost. Locksets are very easy for a landlord to install, avoiding locksmith services. Although a little more expensive initially, purchase of Kwikset Smart Key locks makes rekeying low cost, even no cost if a landlord avoids buying rekeying kits by accumulating a collection of keys.

Key control is a safety and security measure which restricts access to master and back-up keys and provides documentation of the use of those keys. Failure to take reasonable steps to secure back-up keys and control access to master keys may be considered negligence on the landlord’s part if there is an event where unauthorized access was obtained.

Master keys and back-up keys should be kept in a locked key box in a secure location. Access to keys should be limited to designated individuals. A key log should be maintained to document key use. The key log should contain entries for the date, time, reason for key access/use, and the identity of the individual requesting use. The return of the key should be documented to complete the log.

As a safety and security recommendation, keys should be coded in such a way that the tenant’s information (name, unit address, and building designation) is protected. A separate, secured document should be used to provide the key code assigned to the individual tenant. The tenant should be advised that such measures are taken as a precaution for their safety against potential criminal acts.

Key access to rental units for repairs and maintenance should be controlled and supervised by the landlord or his designated agent for safety and security purposes.