Gap between Property Managers and Individual Landlords WIDENING
Education and experience have always been major differences between individual, private landlords and professional property managers and thanks to the government, the gap is widening.
The availability for private landlords to run credit checks on applicants has become next to impossible. Unless a landlord has had a home inspection of their office and had the security of their tenant files verified, they are unable to subscribe to credit reporting/tenant screening services.
Almost 5 years ago, the government tightened the rules on the BIG 3 credit reporting agencies who in turn tightened the rules for their subscribers and third party re-sellers of credit reports. One of the new criteria is that there be a "site inspection" for where reports are ultimatly stored and a review of the office practices of the landlord. Having a locking file cabinet for tenant records is a "must" and separate area in the house for the "landlord's business" is also verified.
Most landlords who only have a few rental properties, either won't pass this site inspection or don't feel they need the extra expense of a locking file cabinet or lock on their home office so they just pass on this part of the process. Landlords who are only renting until the "market gets better" rarely run credit reports since they see this as a one-time event.
These are the landlords that "poor credit" tenants find and take advantage of. While first-time landlords BRAG about finding a tenant with their "first Craigslist post", they often end up having to evict them within three to five months.
