Important Resdient Screening Criteria!!!!

What’s The Most Important Resident Screening Criteria?

When it comes to screening applicants, each property manager has their own set of criteria that potential residents must live up to. Whatever that criteria is, it’s important that it is applied to every applicant that walks in the door. Establishing a consistent screening process when renting an apartment or a house drastically reduces the threat of discrimination lawsuits.
So what’s important to you? While there are always exceptions to this, a good credit score is a great first indicator that an applicant may be a reliable resident. However, it’s important to note that not everyone with a high credit score is a good resident risk…and that not everyone with a low credit score is a high risk. Other key indicators need to be taken into account as well.
One of those things would be a consistent job history. In fact, this may be more important than the credit score. If an applicant has a stable job history, that usually indicates several things; they’re responsible, they’re reliable, and they’re a decent worker; all things that you’re looking for in a resident. I’d take a stable job history over a slightly low credit score any day.
Good rental references are another solid indicator of an applicant’s level of risk. As with a stable job history, good rental references indicate that the applicant pays his/her rent reliably, will likely not trash the property, and will leave it in decent shape when they move out. What more could a property manager want?
Criminal background is another area that needs to be looked at. While at times this can be a judgment call, violent crime or drug convictions should raise immediate red flags in your resident approval process.
I know some property managers and leasing agents who base a large part of their decision on appearance. This can be a major mistake in a lot of ways. Dress is much more casual these days, and a dressed-down applicant does not indicate that they are unable to pay the rent. More importantly, a neatly dressed individual provides no guarantee that their rent will be paid on time.
While a lot of property managers have developed a sixth sense of sorts when evaluating applicants, it’s important to make sure that your rental decisions are based in fact and documented for your records. Careful attention to the criteria you set will ensure that your good applicants turn into good residents.

Will the cost of renting rise in 2011??

Will the Cost of Renting Rise in 2011?

Even though the Federal Reserve Board and the U.S. government keep telling us that there’s virtually “no inflation” and little if any “inflationary pressures”, most Americans know otherwise.

Major financial news channels like Bloomberg and CNBC are reporting that in many regions around the nation vacancy rates are going down. As a result they say that the cost of renting an apartment or a house has been rising. Will rising rates drive would-be renters to purchase homes?

As the National Association of Home Builders states on their web site “While the national home ownership rate stands at an impressive 68%, millions of American Families struggle to find housing that meets their needs at a price they can afford.”

There have been all kinds of foreclosure numbers proclaimed by the media, so it isn’t an easy figure to ascertain. I’ve read and heard repeatedly that the real number of houses and condominiums going into foreclosure in 2011 alone is closer to 6 million and possibly higher.

This will of course swell the inventory of unsold homes as I recently wrote. It’s also likely to drive property values down. But with the Federal Reserve doing all they can to keep interest rates low and mortgage rates down, there are still people able to buy houses.

Pending home sales improved further in December 2010, marking the fifth gain in the past six months, according to the National Association of Realtors®. This figure apparently is a forward-looking indicator, and it increased 2.0 percent to 93.7 based on contracts signed in December from a downwardly revised 91.9 in November.

The data reflects contracts and not closings, which normally occur with a lag time of one or two months. One has to ask, “Is this an accurate reflection of home sales?” Only time will tell.
It’s like looking at a gigantic see-saw. On one end is the number of unsold and foreclosed houses. On the other end is that nebulous number of actual, qualified home buyers who are out there looking for a home to buy and have the money to make it happen.

Each area and region of the country has varying circumstances and conditions. It’s not fair to compare San Francisco with Chicago. But looking at the major metropolitan areas does give us some clues. One vital factor; how many unsold houses and condos will end up as rentals?

Speaking of Chicago, the Chicago-land Apartment Association forecasts that landlords in that area plan to increase rent as high as 8% in 2011.

In Austin, Texas one of the nation’s top-performing apartment markets, rents are expected to jump nearly 7% during 2011, according to MPF Research. Other areas poised to command higher rents in 2011 due to low multifamily vacancy rates are San Jose, Miami, Boston and Portland.