You’ll hear a lot of property management companies talk about their excellent tenant screening processes.
We don’t doubt them.
We also know that our process for screening applicants at Niguel Point Properties is really unbeatable. Our comprehensive screening process is compliant with all fair housing laws. It leverages some of the best technology that’s available in consistently and objectively reviewing tenant data. It allows us to find and place the most qualified residents for your rental home in Dana Point, Laguna Niguel, San Clemente, and the surrounding areas around southern Orange County.
Our approach is similar to that of a serious detective or an eager private investigator. We even screen the pets that your tenants want to move in.
Let’s talk about why tenant screening is so important to the success of your rental property, and why it’s essential to go a little further than running a credit report. We’re going to tell you what sets us apart, and why it makes a difference.
When you partner with Niguel Point Properties for
high-quality property management in Orange County, you get the best in screening technology.
We partner with a team at Findigs.com, a comprehensive, all-in-one platform for rental property owners that streamlines every step in the screening process, from applications to approvals. Decisions are fair, consistent, objective, and based on the data that’s collected and the standards we’ve established to approve tenants moving into the rental homes we manage.
This system is fair, it’s fast, and it’s geared towards protecting your investment.
This is smarter screening that results in better-qualified tenants for your property. Here are some of the things we love about Findigs.com:
| It provides our owners with confidence | It’s fair and legally compliant | It protects your investment |
|---|---|---|
| You know that you don’t have to worry about choosing the right tenant. We know that there’s no chance at a fraudulent application. | California has some fair housing laws that are even stricter than the federal laws. By working with this experienced, objective third-party, we’re eliminating any unfair or subjective screening. | We know the difference a qualified tenant can make when it comes to your investment experience. You want someone who can be trusted to pay rent on time and care for your property. We want that, too. |
There’s a way to save time when screening tenants. That’s by limiting the prospective tenant pool to those who are likely to qualify.
One way to thin the number of applications that we receive and to ensure we are compliant with fair housing laws during the screening process is to include qualifying criteria in listings whenever possible.
For example, we always include the rental amount in our rental listings. We don’t want anyone to see the home if they’re not earning enough money to pay rent. By advertising rental amounts, we’re only going to hear from people who can afford that amount.
We also state whether pets are allowed, because that’s going to restrict who applies for the property. If we’re renting out a no-pet property, we don’t want to waste time showing it to people with a herd of cats.
There’s complete transparency around what type of income and credit standards we have, when tenants will be able to move in, and whether we’re willing to rent to people with a history of evictions.
By establishing standard rental criteria and including as much information as possible in our listing, we know that only the qualified tenants will apply.
Think of it as self-screening. When our criteria explicitly states that income must be at least three times the monthly rent, people won’t ask to see the property when they fall short of that requirement.
| A Note about Applications |
|---|
| The rental application is going to help you screen for the best tenants, so we make sure to use a form that’s been approved by legal experts in California. We collect all the pertinent information, such as former addresses, employers, income information, and social security numbers. Most importantly, we get a signature that grants us the permission that’s needed to run the necessary background, credit, and reference checks. Every adult who is 18 years of age or older should complete an application and be fully screened. |
Every property owner has different standards when it comes to who they want in their property. As long as you’re complying with fair housing rules, you can set up whatever standards you think are important. Finding a tenant with a perfect credit score is unlikely. But, you can establish a minimum credit score. Here’s what else you should be looking at, and why.
| Debt and Credit | Income Standards |
| Is there a specific credit score you want your tenants to have? It’s always important to check credit scores before you approve a tenant, but some owners have unreasonably high standards for what they want to see. Others have no standards at all. Establish a threshold and review the credit report to look for any red flags or issues. Some of those red flags may be money owed to former landlords, property managers, or apartment communities. If they haven’t paid their housing debts previously, can you be sure they’ll keep up with the money they owe you? You don’t want to see any delinquent housing-related accounts, either, such as utilities, cable, etc. If there’s a lengthy history of court judgments or evictions, you may want to deny that application. Consider debt to income ratios, too. | For income, California property management best practices say that you should look for someone who earns at least three times the rental amount. Do some math, and you’ll see that this means if you’re asking $3,500 in rent, you’re looking for monthly income from all adult tenants that meets or exceeds $10,500. Always have a way to verify that tenants earn what they say they earn. You can ask for proof of income through pay stubs, employment contracts, or by calling employers yourself. If you’re working with a retired tenant or someone who is self-employed, you can ask for documentation in the form of tax filings and bank statements. |
| Talking to Former Landlords | The Importance of Pre-Screening |
| Reference checks can be an important step in the screening process. A current or former landlord can give you a clear understanding of how your prospective tenant behaves in the property they rent. Ask the former landlord to confirm the dates of residency and the amount of rent that was paid. Find out if the entire security deposit was returned and if proper notice was given before that tenant moved out. You’ll also want to know if rent was paid on time, and how quickly the tenant caught up if it was ever late. If the tenant had pets, ask if there were any issues with those animals. Find out if there was property damage left behind when the tenant moved out. Then, ask if they’d be willing to rent to the tenant again. That one question and answer should tell you everything you need to know. | Before you even get to the point that you’re reviewing the results of your screening, you want to make sure you’re showing your property and providing applications to qualified tenants. Pre-screening can help. In addition to sharing your standard rental criteria, ask a few questions. Find out when they’re looking to move. You don’t want to leave your move-in ready property vacancy for too long, so you’re looking for people who are ready to move within a few weeks or a month. Ask about their budget. This is a good opportunity to talk about the monthly rent. You can explain what your income requirements are, and ask if they meet those standards. Find out if they’re willing to tell you about any prior evictions. This tells them that you’ll be checking. Ask whether they have pets, and make sure you can clearly explain your pet policy. We only show properties to tenants who meet our standard criteria and pass our initial pre-screen. |
In our experience, having these standards in place during the screening process establishes accountability and protects our owners against the risk of tenants who can’t or won’t pay rent.
It’s more or less impossible to own rental real estate in southern California without having a grasp on the fair housing laws that are in place at the federal, state, and local levels. This is an area of the law that’s always changing, and you have to understand how to protect yourself against any fair housing claims.
When you leave the screening to us, you can be sure we’ll keep you out of trouble.
Mistakes are easy to make, even if you’ve been renting out a home for years. Staying a few steps ahead of the latest changes and interpretations requires a lot of work and an investment in education and professional development.
Fair housing impacts a lot of what you do as a rental property owner. It affects:
Always consult with a local property management company (like Niguel Point Properties!) that knows these laws inside and out, otherwise you could be putting yourself and your investment property in unnecessary legal danger.
These are the basics:
The federal Fair Housing Law protects the following classes of people against discrimination in rental housing. You cannot discriminate or deny housing based on:
These are easy enough to understand, and we know that there aren’t a lot of landlords who will intentionally discriminate against people because of skin color or religion. The problem is that most mistakes are unintentional. When you’re advertising, screening, and leasing, make sure you know what you can and cannot do in terms of these protected classes.
California is a little more protective of tenants than other states when it comes to fair housing. In California, we get into protected classes that cover sexuality, age, immigration, veteran’s status, gender identity, language, source of income, citizenship, and an ever-growing list of characteristics.
Protected classes have rights that are easy to misunderstand. For example, a tenant with a disability has the right to move into your home with a service or support animal, even if you don’t allow pets. Those Section 8 tenants who are qualified have a right to live in your home even if they get their income from a government housing program.
| Always Accept Service and Companion Animals | Section 8 as a Source of Income |
|---|---|
| Fair housing laws do not consider service animals or companion animals to be pets. Instead, they are considered accommodations, like a wheelchair ramp or a shower seat. Not only do you have to allow them, but you cannot charge a pet fee for tenants who have a service animal. You cannot charge pet rent for tenants who have a companion animal. Recently, laws have changed around companion animals. Get to know what you’re permitted to ask and what you’re not. We can help. | The Tenant Protection Act requires landlords to allow Section 8 tenants to apply to rent their homes. Those housing vouchers can be used as proof of income. It cannot matter how tenants make their money when they apply to live in your home. As long as they have the required income that meets your screening criteria, you must consider them. Following fair housing laws is a lot more complex than simply making a policy of not discriminating against those protected classes. You have to have policies that reflect equal opportunity when it comes to advertising, screening, leasing, and managing your home. |
We screen pets just as carefully as we screen tenants. We like it when owners are willing to accept pets because it usually leads to a lower vacancy. You’ll also earn more money thanks to pet fees and pet rents. Tenants who own pets are likely to stay in place longer.
However, welcoming pets into a property also comes with risk. Dogs and cats are known for scratching at walls and floors, leaving behind strong pet odors, and even biting or scratching people in or around the property. We make sure you have a strong pet policy in place, and we also make sure that pets are well-screened before they’re approved.
We screen for health and behavior issues:
We ask for information on the animal’s veterinarian and make sure they’re up on their vaccinations, flea treatments, and other medical requirements. You don’t want to find your carpets are infested with fleas after a tenant with a dog moves out.
We tend not to approve those pets with a history of biting neighbors or barking long into the night. We’re also mindful of breeds. We know a lot of
insurance companies won’t provide coverage when you allow dangerous dog breeds. You may need to restrict what kinds of pets you’ll allow. You can set your own breed restrictions, as well. If you’re not comfortable renting to a particular dog, you can either deny the animal or request that your resident get an additional rider on their renter’s insurance that will cover them for that pet.
While the tenant will provide all of the information we need to screen pets, it’s important to verify it with veterinarians and former landlords.
The goal of any tenant screening process is to check an applicant’s background and ultimately place a qualified tenant who is qualified to live in your rental home. This requires a system, and we provide one that’s fast, efficient, and fair.
The screening process must be based on data and information, not emotions. With all of the technology available to us when we’re screening tenants, it should be easier to identify who is qualified and who is not. But, it’s also easier for enterprising tenants to be dishonest. You can trust us, and you can trust our process.
Good tenants are forthcoming during the application process - quick to provide the required information, and open about discussing their income, finances, and rental history. A good screening process is worth our time and resources when we are placing a tenant in your property.
Let’s talk more about the importance of screening tenants, and why you can trust our team to do the best possible job finding you a reliable renter. With our
understanding of the local laws and our partnership with an expert screening service, you end up with an outstanding resident.
Contact us at Niguel Point Properties.
We will not share your information with any third party companies.
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Sat - Sun: open for rental inquiries + emergencies
Corp license: #01987260
Broker license: #01395953
