A very wise Zen quote states, “Those who know don’t tell, and those who tell don’t know.” If you are fortunate enough to have never had a hostile tenant, then you either: a) know something great that you should tell, or b) you have not been a landlord very long. If the former is true, then feel free to stop reading here and continue in your Zen greatness. As for the rest of us, unfortunately, there is no “Staples Easy Button” when it comes to dea … Read More

via Colorado Legal Blog

As a landlord, what do you do when your tenant files bankruptcy? Should you: a. immediately run to the courthouse and file for eviction? b. lock the tenant out of the property? c. send the tenant a letter demanding immediate payment? d. knock on the tenant’s door and inform him or her that the bankruptcy is a violation of the lease agreement, which requires him or her to move out? e. deliver a formal, written notice requesting that the tenant eit … Read More

via Colorado Legal Blog

“Experts say Phoenix-area homes are selling because investors see them as a good value. Many can hold the houses and turn them into rentals, earning a good return on the investment. Others move to resell or “flip” the properties quickly, still turning a profit because the up-front price was so low.” Read more…  by Catherine Reagor, Arizona Republic 5-28-2011

“Millions of foreclosures have turned former homeowners into renters. In fact, there’s been a nearly 34 percent increase in rentals over the last decade, according to a USA Today analysis of U.S. Census data. That means that in 2010, nearly 35 percent of occupied homes were rented.” Read more…  by Phoebe Chongchua

“Those who can buy, and want to buy, have been waiting for this moment. These are the renters who are qualified to purchase — the ones who never considered renting for the rest of their lives.”  Read more…  By David Fletcher, Wednesday, May 25, 2011. Inman News™

]]> http://myevpm.wordpress.com/2011/05/27/signs-of-life-in-phoenixs-home-building-market/feed/ 0 myevpm http://myevpm.wordpress.com/2011/05/19/metro-phoenix-new-home-market-is-on-mend-experts-say/ http://myevpm.wordpress.com/2011/05/19/metro-phoenix-new-home-market-is-on-mend-experts-say/#comments Thu, 19 May 2011 23:34:03 +0000 Rhathcock http://myevpm.wordpress.com/?p=35 ]]> Metro Phoenix new-home market is on mend, experts say.

“With Phoenix’s new-home construction slower than it has been in at least three decades, existing demand is slowly consuming the supply of empty houses, many built speculatively during the boom.”  Catherine Reagor, Arizona Republic Newspaper 5-19-2011

“Rents are rising, and rental properties — from foreclosure houses to huge apartment complexes — are drawing investors big and small, local and international. Apartment complexes in areas with good schools, shopping centers and freeways are sparking bidding wars among investors.”  read more…  Catherine Reagor, Arizona Republic Newspaper 5-18-2011

Then why is a credit report not enough? Running a credit history and relying on just one area for approving an applicant is simply not comprehensive enough. A credit report just does not give you ALL the facts, and in particular, does not reflect how that person will maintain your property. Credit reports do contain a lot of information, but you need to have several sources to give you a “complete picture” of the person you are considering as a future tenant.

This process starts with our comprehensive tenant application. This gives us written permission from the applicant to obtain a credit report, which is an important part of the Fair Credit Reporting Act. Without this authorization, property owners are liable for illegally obtaining credit information.

The application also provides us with other information needed to determine the tenant’s qualifications.

• Rental history or ownership – how will they take care of the property?
• Reliable income – can they support the property every month?
• Personal references

“Cross-referencing” this information on the credit report to the application is very important.

• Does the credit report reflect the same addresses the applicant has listed? This is very important for ferreting out “additional residences” the applicant might not want to show due to rental history problems or recent evictions not yet reflected on the credit report.
• Does the credit report show any conflict on employment or income on the application?
• Does the credit report reflect the correct birth date and social security number? They could be using the information of another family member with a similar name.
• Does the credit report reflect bankruptcies or an eviction that the tenant has failed to disclose?

A credit report sometimes reflects the name of the employer. However, it does not usually show income details, their supervisor, or other important details of employment. Requiring “verifiable” written documentation for income, such as W-2’s, tax statements, and other sources from the applicant is the way to obtain this documentation, as well as calling for verbal verifications. In addition, a credit report will not show many other types of incomes, such as trusts, investments, welfare payments, or more.

Credit reports do not verify the ownership of a property or list details of rental history. Instead, county records verify if the applicant has listed the correct property owners. Verbal or written inquiries are necessary to learn how the applicant maintains the property and pays the rent. However, the credit report may show an unlawful detainer, which may lead to a more detailed investigation of the rental history. The application can also reveal discrepancies or warning signals. For example, the landlords and employers also show up as personal references or relatives. This bears careful investigation to ensure that they are not set up to give out false information.

The bottom line is that credit reports ARE important. The reports do reflect the applicant’s history of how they handle their credit, which is an important key in any application. However, they do not provide enough information necessary to determine if an individual is qualified to rent and maintain the property. Therefore, as your property management company, we use both a detailed application and a thorough tenant screening process to determine who will reside in your property.