IMPORTANT CHANGES TO LANDLORD/TENANT SCREENING RESTRICTION IN LIEU OF EVICTION MORATORIUM WHEN PROCESSING RENTAL APPLICATIONS.
It will be very important to perform rental verifications via phone to confirm an applicants rental history to avoid approving a poor performing tenant that has not paid rent since March of 2020 to date. New mandate that took place TODAY STAY WOKE:
The Federal CARES Act, CDC eviction moratorium and various state and regional eviction moratoria have prevented landlords and property managers from evicting tenants in certain circumstances or under certain conditions. They have also prevented the reporting or consideration of certain eviction data in connection with credit history and background screening. Given the risk to businesses considering eviction records during the effective dates of the legislation referenced above,
Eviction reporting will no longer be reporting Landlord Tenant records (i.e. eviction records) created and/or filed from March 1, 2020 until August 31, 2021 on our screening reports effective immediately. BE CAREFUL!
Comments (1-7)
August 26, 2021 the U.S. Supreme Court ended the pandemic-related federal moratorium on residential evictions imposed by President Joe Biden's administration. The policy was challenged by the Alabama and Georgia Associations of REALTORS®, two housing providers, and their property management companies.
California Governor Gavin Newsom signed a law on June 28 extending the state's eviction moratorium through Sept. 30. This is the third time the moratorium was extended . Newsom, who is facing a recall election, has said a fourth extension is unlikely.
California will pay off 100% of eligible tenants' unpaid rent from April 2020 through Sept. 30, 2021. To be eligible, tenants must earn 80% or less of the area median income, an amount that varies depending on where they live. The money - $5.2 billion - comes from the federal government.
With this plan everyone should be made whole, right? Not necessarily. What if, you are a tenant that didn’t qualify, or just choose not to pay rent?
Well the CARES Act, has prevented the reporting, or consideration, of certain eviction data in connection with credit history and background screening.
Given the risk to businesses considering eviction records during the effective dates of the legislation referenced above, the credit bureau I use, will NOT provide tenant records (i.e. eviction records) created and/or filed from March 1, 2020 until August 31, 2021 on their screening reports, effective immediately.
The winners in this game of political pandering are tenants who did NOT do the right thing. The losers are residential landlords that have a negligent tenant, who will NOT suffer consequences for their derelict actions.
Karen Sherardis this in reference to the notice from Appfolio? I know several states have restrictions on reporting evictions so Appfolio is no longer reporting eviction on screening reports software-wide. To my knowledge, there has not been a nationwide law against reporting evictions so unless state-specific it doesn't apply.
I always check the court docket in the county from which the applicant last resided. This will provide information on dispossessories filed, judgements, executed writs for eviction, and other good stuff...
You should always check applicant addresses reported on credit check report against property appraiser ownership to ensure they are not lying about living with parents or in family owned property after eviction.
Interesting!
Good info thanks
Good info