Tenant Screening
Reference Materials
Enhanced Tenant Screening Website is Online — Are You?
February, 2009
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would like to thank you all for your continued cooperation with our tenant screening tribulations, and would also like to take this opportunity to thank our tenant screening staff for the great job they have been doing.
As of February 1, 2009, AAGLA is featuring an enhanced innovative website, which can still be accessed at credit.aagla.org/. One of our main objectives is to make it easier for you to read and decipher tenant-screening reports. I highly encourage all of you to take a look at the format and get accustomed to the changes. The really good news, as reported last month, is that in addition to the reformatted reports, AAGLA members now have the ability to do debt reporting (a tool used to recoup losses from deadbeat tenants), gain access to criminal reports nationwide, and to get new free services, including interactive negative credit notices, marketing and income reports, and rent comparison reports.
Some of you might already have spoken to Cindy Felix, Sam Lee, Lorraine Williams or Mona Begum, who are in the process of setting up your accounts. Although the process is time consuming, we are doing our best to systematically update and complete the new compliance packets. Remember, if you do not have your compliance paperwork complete, you can not be given access to the new website.
For your edification, over the past two months there have been three frequently asked questions.
Three Business References
We need three vendors or businesses you work with on your apartment building. It might be a gardener, plumber, electrician, or apartment supplier account. If you own and operate a small apartment where you do most of the maintenance work yourself, current utility bills are acceptable. Use letter format, preferably on company letterhead.
Letter of Intent
The letter of intent is a written letter stating your intent when using AAGLA's tenant screening services. For instance, "I intend to use AAGLAs tenant screening services to make rental decisions on potential tenants. If there are any questions or concerns please contact me."
The Inspection
Unlike previous years, the Federal Trade Commission and credit providers have made inspections mandatory for all end-users (apartment owners).
They "must" be conducted annually (sorta). If your compliance packet is complete, wait until your tenant turns in their "30‑Day Notice to Vacate." Then, register for your inspection online (a good way to save $10 on registration costs). This way you will not have to incur the cost for the annual inspection until you need it.
I strongly urge you to get all of your compliance paperwork completed and turned in to our tenant screening staff. We will continue to contact you in order to set up your accounts. Your username will be your AAGLA membership number and the password will be created by you. Something to note, the password must be a minimum of six characters and include one number.
In these hard economic times, we recommend you take full advantage of the new features on the website. Quadcheck online reports will cost $15 while regular call-in quads will cost $23. With a price difference of $8, we strongly recommend that you use the online reports if at all possible, especially in this economy.
So take full advantage of our newly formatted online reports and save big bucks.
Ability to Report Bad Debt to Credit Agencies Restored
January, 2009
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s many of you may already know, the requirements for tenant screening have changed. The evolution of the internet and the advancements of associated technologies have made it much easier to attain information. In essence, the world is at your fingertips!
The bad news?
Internet crimes, specifically identity theft, have risen dramatically in the past few years. In addition to internet crimes, the current economic situation has pushed the Federal Trade Commission, Experian and Transunion to make significant changes to their requirements for getting sensitive consumer credit reports.
Most of the requirements are the same as before. The changes require three signed rental applications, a letter of intent, three business trade references, and the front page of the end-user's (that's you) bank statement. Of these new requirements, the most resistance comes from the bank statement request. We can't change that.
There is however, an alternative to getting annual inspections. If you choose this option, you can use a "qualifier." The "qualifier" will give you a rental decision on your potential tenant based on criteria of your choosing. The downfall is that no raw credit data will be provided to you, only a "yes" or a "no."
My advice is to make sure your compliance paperwork is complete, and get your inspection before you need to run reports unless you run them very infrequently. In that case, you may want to wait until you need a report to get an inspection.
In last month's article, we said that it was not necessary to turn in a copy of the front page of the end-user's bank statement. The reality is that Experian has made it mandatory for everyone using their services to turn one in. The credit bureau's sentiments make it clear that these requirements are non-negotiable.
Of course, with additional requirements come additional features for our members. Due to the new website and all the additional functions, doing tenant screening checks online has become much more affordable. Make sure to take full advantage of discounted on-line reports, if at all possible.
AAGLA also is proud to announce the launch of new easy‑to‑read reports. All the raw credit data will be translated into a reader‑friendly format. Also, in an exciting development, AAGLA has regained the ability to report bad debt to credit bureaus. If your tenant leaves the apartment without paying rent and/or damages your unit, this new service can help you to get your money back!
Some of you may have doubts about providing this information. The compliance information you provide will be stored at AAGLA. Since audits by the credit companies are on done on a random basis, we must have your paperwork to continue your service. Your packets will be kept in a safe room with all the technological support and the promise that we will maintain your confidentiality with the utmost of care.
While you are getting your files up to date and complete, we will still be able to provide tenant screening reports to you, and they will still be available by phone and fax.
On January 15, 2009, a newly designed website will replace our current one for on-line tenant screeners. In order for you to get a username and password for that service, you will need to submit a completed compliance packet to Cindy Felix by January 9, 2009. If you have submitted a completed packet but have not received a username and password, please contact Cindy (x304), Mona Begum (x701), Maureen Farrell (x319), or Sam Lee (x340) at 213384‑4131. They will be more than happy to help you with any questions or concerns. Thank you for your continued understanding and your cooperation.
Preventing ID Theft — Round Two
December, 2008
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n last month's article, I detailed Experian's efforts to curtail identity theft. After consulting with AAGLA President John Schulhof and others, we decided to "outsource" Experian to a third party that is already "certified." We will soon be up and running on a new "platform" that will offer Experian credit reports.
That's the good news.
The other news is you must still prove that you really are an apartment owner/manager. Minimum requirements include the following.
1) A copy of your telephone bill or listing in the phone book.
2) Three signed rental applications.
3) Proof of ownership of your rental property showing the same name as your membership name, such as a tax bill or property deed dated within the last 12 months.
4) Three business trade references.
5) A signed and dated list of the properties you own or manage.
6) A copy of the front page of your bank statement with the account balance, name and account number is required.
7) A letter of intent stating the nature of your business and the intended use of the service.
8) An on-site inspection of your office (see our website for this link).
9) If you are a property management company, a signed contract with one of your clients for whom you manage.
You also must sign that you acknowledge your responsibilities when obtaining confidential consumer credit reports, and that you will adhere to the Consumer Credit Reporting Reform Act of 1996. You must keep the consumer (rental) applications for a minimum of three years from the date of inquiry. Due to the extra costs required to process this new paperwork, we are forced to increase the cost of Experian credit reports from $6.50 to $7, our first such price increase in 15 years.
There also may be an alternative to the above. It gives you more privacy and provides some information. Basically, it requires that you set up a series of criteria that credit reports "bounce" against. You only get a "go" or "no-go" result. The actual report itself is not available to you. I am still investigating this option. If it is feasible, I will report on it in later articles.
Finally, this month is John Schulhof's last month in office. I personally want to thank John for his guidance and assistance over the last two years. Members don't realize the amount of time it takes to be the President of a large, non-profit trade association (for which they receive no compensation). Thank you, John. Happy Holidays to all.