Changing Tenant Screening Legislation: Protection for Property Managers

Posted by: TheGuarantors on August 11, 2022

 

 

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Tenant screening laws provide guidelines that serve to protect both tenants and property managers, which help to protect both the property and its owner from unscrupulous or unqualified renters. In this blog, we'll outline the tenant screening legislation that came into effect as of January 1, 2022, what this means for property managers and how you can protect yourself again renter default.

What is the changing legislation?

Under the new ordinance, property managers will now be more restricted in the questions they can ask at the screening phase of an agreement. So, what can't property managers ask about anymore and why?

  • Medical marijuana cards
  • Prior evictions
  • Criminal history

Medical marijuana cards

Starting January 2022, property managers are unable to ask prospective tenants about their status as medical marijuana patients.

Prior evictions

Aimed at stopping the cycle of homelessness, criminality, and arrest, prior eviction court filing records can not be considered if a tenant won their case or the judgment is 5 years old or more.

Plus, a filing can not be considered if the event or reason for the prior eviction occurred between April 1, 2020 and February 28, 2022. This means that when evaluating a renter potential renter that violated their lease during this time period, even if the judgment was entered outside the timeframe, it cannot be used as a reason to deny housing.

Criminal history

As with the eviction history restrictions, only some parts of an applicant's criminal past are open to scrutiny. However, convictions and pending charges can be considered for acts that are considered illegal in the state you're in. Some example include personal crimes, sex offenses, and financial crimes.

This openness around criminal history also stretches to prior arrests. If an applicant was arrested and charged for any of the above crimes, then they may be considered as reasons to deny housing.

How does this impact property managers?

Property managers proven to have denied residence to applicants on the above grounds could face financial penalties. However, it's important to remember that you can get coverage to protect you against tenants who may default on payments.

What can property managers do to protect themselves?

Property managers proven to have denied residence to applicants on the above grounds could face financial penalties. However, it's important to remember that you can get coverage to protect you against tenants who may default on payments.

With products like Lease Guarantee, you can still feel confident about the protection you receive and your bottom line, should the worst happen. TheGuarantors takes on the tenant background with its AI-powered underwriting platform so that you can get customized coverage to suit your needs.

Conclusion

These latest legislative shifts showcase how important it is for property managers to stay up-to-date with residential laws. They also signal the importance of insurance products like those offered by TheGuarantors, which increase affordability and access to homes for renters while ensuring the best protection for property managers, taking the stress and worry out of renting for all parties involved. Visit our website today and start raising your renting game.