by Nicole Scimio | Jan 27, 2025 | Blog, Featured Posts, Low Income Tax Credit Housing, Owner Resources, Project Based Section 8 Housing, Property Management Education
What Does Tenant Screening Look Like in Affordable Housing?
What is Tenant Screening?
If you know anything about the rental process, you’ve likely heard of landlords screening potential residents after receiving applications. But what exactly is tenant screening?
Tenant screening is the standard practice used to evaluate prospective residents when processing housing applications.
While there is not one perfect screening method that yields perfect results, management often enlist the help of a third-party company. This helps ensure that all boxes are checked and that nothing is overlooked.
At Arbors, our property management staff submits all of the necessary documents to our external screening company. We are able to determine eligibility based on:
- The information provided
- The application received
- Information gathered from the applicant’s prior landlords to verify their rental history
What is a Property Manager Looking for When Screening Applicants?
As a property manager, you likely receive many applications for potential residents at your property. Therefore, it’s important to look at a few different key aspects of someone’s history when considering their application.
When screening applicants, we use screening criteria as well as a Resident Selection Plan. Anyone who meets these criteria is approved for tenancy.
Common factors that managers and screening companies look at in applicants include but are not limited to:
- Current income
- Credit score and history
- Criminal background check
- Eviction history
- Employment history
- Reason for leaving their previous residence
Each of these factors serve as helpful indicators for the management team to determine if the applicant would be a qualified candidate.
Why is Tenant Screening Important?
Tenant screening is important because it provides management with a general overview of the applicant’s history as a resident.
With the information provided, property managers can make educated decisions that help protect the safety of their current tenants, as well as help preserve the integrity of the property(ies). Additionally, you can help ensure that not only is the applicant a good fit for the property, but that the property is a good fit for the applicant.
Here at Arbors, we have a higher retention rate than the average in our industry. We feel that this is in part due to good screening, as well as great care of our residents during their tenancy. Screening properly makes a difference!
What Are the Risks of Not Properly Screening Applicants?
If you don’t screen your applicants appropriately, you risk the chance of having residents that could have a negative impact on your property or other tenants.
One of the main ways that managers make mistakes during screening is not thoroughly examining an applicant’s background and missing vital information.
For example: one common mistake that many property managers make is failing to ask for previous landlord verifications.
By failing to gather those references, whether good or bad, you will not have a clear picture of who you are about to rent to. A previous landlord may be able to warn you of poor payment history, poor housekeeping, and even poor conduct of the applicant in question.
On the other hand, positive references from a previous landlord can provide peace of mind that the applicant may be a good fit for your property. Perhaps they’ll even have a great impact on the property and neighboring community!
At the End…
Tenant screening is a common (and important) practice among property managers! It gives managers a glimpse into a resident’s history and what they could be like as a resident at their property.
Screening applicants helps managers make educated decisions on who is a good fit overall for their property. By looking at multiple aspects of the applicant’s background, you can get a fuller picture of who each applicant is.
Managers are looking for applicants who will bring value to their property and community, and tenant screening helps guide the selection process. Just make sure you are thorough in your research and don’t miss any key details!
If you need help screening applicants or managing your property, please feel free to contact us here at Arbors Management at 1-800-963-1280 or monroeville@arbors.com – we’d be happy to help!
by Nicole Scimio | Oct 21, 2024 | Blog, Investment Rental Property, Owner Resources, Property Management Education, Uncategorized
How To Create a Solid Rental Application Process
The Importance of a Great Application Process for Potential Residents
If you’re a rental property owner / investor and have great residents who treat your property as their own, you really can’t ask for anything more.
But how do some landlords seem to have wonderful residents while others only seem to attract trouble?
The key: a solid, dependable rental application process to thoroughly and efficiently screen potential residents.
What is the Application Process for Rental Properties?
A good application process is essential to running your rental property management business.
This initial step can be what sets you (and your residents) up for success, or if you’re not careful – failure.
The application process varies from company to company, but generally it can be described as:
The time in which a potential resident fills out an application provided by you (or your property management company), gives references from prior landlords, proof of income and employment, credit information, and an application fee if appropriate.
We’ll go ahead and cover a couple of key things that your application process should include.
Tip #1: Make it Easy to Apply to Live at Your Property
While you want your application to provide insight and value for you, you don’t want it to be so cumbersome that it hinders quality residents from actually just applying.
If your application is 20 pages long and takes hours to complete, chances are that no one will want to complete your application.
The applicant will likely get too frustrated half way in, abandon the application, and forget to come back to it.
They’ll find another place to live with an easier application process.
Here at Arbors Management, we accomplish this by making our process completely online and digital.
With the online application process, we set up a portal for each applicant where they can monitor the progress of their application any time they’d like.
No more daily phone calls from applicants asking if they’ve been approved – that’s a win-win!
Prospective residents can apply through any device that’s connected to the internet, whether that’s a computer, tablet, phone, etc.
We also allow applicants to attach their paystubs and photo ID directly to the application.
Once an application is received, we should have all the information required to process that application in a timely manner.
We are able to process the credit and criminal history rather quickly (typically within minutes) after receiving that application. We can then approve or deny that applicant and move to the next steps.
Goal: to make your application process quick, easy, and convenient, but without compromising quality.
Tip #2: Make Sure You Get the Full Picture
The application you provide should give you a complete picture of the applicant once filled out and returned.
It should ask all the right questions, helping you understand who this prospective resident really is.
A few example questions that we would suggest including are:
- Have you ever been evicted?
- Have you ever been convicted of a criminal offense?
- Have you ever filed suit against a landlord?
- Are you a smoker?
- Have you ever filed for bankruptcy?
- Are there any judgments or legal actions against you?
- Have you spoken with a Leasing Specialist regarding this property?
Goal: gather all of the information you need in order to make the decision to approve or deny an application.
Tip #3: Consistent Screening Criteria
Your application should incorporate all of your screening criteria that you’ve determined prior to accepting applications.
Along with this, your application should allow you to consistently apply the same screening criteria across multiple applicants.
Goal: consistency that will help to keep you legally safe within the confines of fair housing law.
Tip #4: Convert Applicants to Residents Efficiently
Your application process should help you convert qualified individuals into residents efficiently.
The way we do this here at Arbors Management is through our property management software.
With the software we utilize, we can take an approved application and convert it directly into a new resident account.
After an applicant is approved, we can directly send them a lease online through the portal that was set up for them at the beginning of the application process.
The prospect can then sign the lease and pay their security deposit and first month’s rent all through that same portal!
After moving in, the resident will continue to use their portal to pay their rent and submit maintenance requests in the future.
Goal: quickly & efficiently turn approved applicants into new resident accounts.
In Conclusion…
All in all, it’s super important to have a good application process!
In this article, we explained the importance of this process and how to create a successful application process through four different tips:
- Make sure it’s easy for prospective residents to apply
- Your application should give you a complete picture of the applicant(s)
- Apply screening criteria consistently across all applicants
- Convert applicants to residents efficiently
We hope that you’ve found this information helpful. If you’re interested in finding out how Arbors can help you easily convert applicants into residents, please contact us!
by Nicole Scimio | Dec 5, 2022 | Blog, Property Management Education, Tenant Education
By: Nick Griffith & Nicole Fandel, Director of Conventional Housing and Marketing Specialist
How We Keep Our Clients in Compliance with the Law
One of the most important facets of property management is maintaining legal compliance. As daunting as that can be for one owner, Arbors has a dedicated Compliance Department to ensure that you and your property are in the clear.
So how do we keep our clients legally compliant? We’ll break that down in this article over these five different categories:
- Fair Housing
- Occupancy Permits
- Inspections
- Reasonable Accommodations and Reasonable Modifications
- Compliance Department Review
1. Fair Housing
First and foremost, we want to make sure your property is compliant with fair housing regulations, one of the most important aspects of managing rental properties. How do we keep you in compliance with fair housing law?
One of the best ways for us to do this is through our screening criteria. We’ve developed our screening criteria over the 40 years that we’ve been in business and abide by that criteria on properties that we manage in order to avoid any fair housing violations.
In an effort to eliminate unfair advantage or preference among applicants, we process applications by the standards set by the Pennsylvania State Law. We also process applications in the order that they are received.
Additionally, our agents representing you have their real estate salesperson license. With this comes continuing education to ensure we stay up to date with all legal requirements and updates pertaining to keeping you compliant with local, state, and federal laws.
2. Occupancy Permits
Another way that we keep you in compliance is by keeping your property in rental housing code compliance with any state, local, or municipality housing standards. One of the items that is included in many of these local requirements is an occupancy permit or a rental registration.
If you do have a rental property under our management, we will take care of occupancy permits or rental registrations required by any local municipality or governments. This includes:
- Payment on our clients’ behalf of rental registration fees
- Coordinating and potentially attending occupancy inspections
- Arranging any repairs needed in order to stay compliant with local municipality occupancy standards
3. Inspections
We perform annual inspections – we call them interim inspections. At these inspections, we’re looking for common things at your property that are required by the local municipalities to make sure that you’re able to obtain occupancy permits. The most common things are:
- Smoke detectors
- Carbon monoxide detectors
- Handrails
- Any other obvious safety deficiencies at the property
If we do find that any of these items need attention, we will address them.
4. Reasonable Accommodations and Modifications
Occasionally, a resident may request for a reasonable accommodation or a reasonable modification to your property.
We are trained and well-versed in the requirements necessary in order to approve or deny these requests.
We will handle the proper paperwork and forms to document the request to complete everything, all while making sure – you guessed it – that you are staying in compliance by abiding by fair housing laws when accommodating or denying a request.
Here’s the difference between the two:
Reasonable Accommodation: request for a change in our policies and procedures to accommodate a resident for a need that they have.
*Responsibility of the landlord to pay
Ex: Allowing a service animal to occupy a property with a no-pet policy
Reasonable Modification: request to change the physical nature of the property to accommodate a resident for a need that they have.
*Responsibility of the resident to pay
Ex: Installing a ramp to the front entrance of a property because the resident is wheelchair bound
5. Compliance Department Review
Any new residents moving into your property will be reviewed by our Compliance Department in order to ensure that we met all of the screening criteria appropriately.
A few items that the Compliance Department review are:
- The lease
- Application
- Credit and criminal reports
- Photo identification
- Proof of income
If they do find any errors or discrepancies, our management staff will be alerted and those will be corrected as soon as possible.
Arbors Management Keeps You Compliant
With over 40 years of experience in property management in Pittsburgh, Western Pennsylvania, and West Virginia, we’ve learned a thing or two about legal compliance.
When you hire Arbors Management to manage your property, you are also hiring a dedicated Compliance Department that ensures that you and your property are operating within the bounds of the law.
If you have any questions about our professional Pittsburgh property management services, including how our Compliance Department works, please contact us through this form, or give us a call at 1 (800) 963-1280.
Disclaimer: We are not attorneys and the information herein is not intended to be legal advice. Please consult with your attorney for any matters pertaining to your specific situation.
by Nicole Scimio | Apr 15, 2022 | Blog, Property Management Education, Rent Collection, Rental Price
What Kind of Fees Can I Expect From Arbors Management?
Every property management company has a different way of working and a different way of charging management fees.
For example, you might hire a management company that charges one flat rate, or you might find a property manager who charges separately for every service that’s performed.
At Arbors Management, we have three all-inclusive fees. We do not like to piecemeal our costs, and we don’t have an upcharge on our maintenance services.
Today, we’re talking about our three fees upfront and what all you can expect when you work with us.
These fees are also similar to many of the fee structures you’ll find with property management companies in and around Pittsburgh.
Leasing Fees in Pittsburgh
Our leasing fee is the equivalent of one month’s rent, meaning the first month of rent that we collect for you will pay for our leasing services. It’s a one-time fee that’s paid at the beginning of the lease.
This fee covers everything involved in finding and placing a great resident, including:
- Marketing your property
- Showing your property
- Rent pricing
- Preparing the property for rent
We’ll also handle the application process and screen each resident thoroughly and in compliance with the fair housing laws.
Once we’ve approved a resident, we’ll take care of:
- Collecting the move-in funds
- Conducting a move-in inspection of the property to document its condition
- Executing the lease agreement
Management Fees in Pittsburgh
Then, you’ll have the monthly management fee, which is typically 9 percent of your monthly rent.
The management fee can differ depending on a few different factors:
- How many units the property has
- If we will need to employ onsite staff
- How many total properties we’re managing for you
- How much those homes are earning
- The neighborhoods in which those homes are located
Your management fee will come directly out of the rent we collect from the residents. It includes everything that’s covered in our management services, from lease enforcement to inspections to maintenance.
The management fee also covers:
- Our resident and vendor communication
- Any notices that need to be served
- Our accounting and bookkeeping
- The portals we provide for residents and owners
Lease Renewal Fees in Pittsburgh
Our final fee is a renewal fee, which is a flat $250 charge that you’ll pay each time we renew a resident.
When you think about the cost of resident turnover and vacancies, it’s easy to see what a value $250 is.
We’ll work hard to retain your residents, and the renewal fee will cover our negotiation and signing of the new lease. It costs you a lot less than it would if you were paying a new leasing fee.
In Conclusion…
There is no single right way to charge management fees, but the most important thing is that the company you’re working with is transparent and honest.
The last thing you need as an owner and investor is to be surprised by extra charges, and it’s important to review your management agreement before you sign it.
Contact us at Arbors Management if you’d like to know more about our services and their costs. Our Portfolio Managers and Leasing Specialists would be happy to provide a personalized quote that’s based on your property and its unique needs!
by Nicole Scimio | Mar 1, 2022 | Blog, Property Management Education
By: Nick Griffith, Director of Conventional Housing at Arbors Management
What Exactly Do Property Managers Do?
Today, we’ll be speaking about a very simple question that has a complex answer: What exactly do property managers do? The way we see it here at Arbors Management is that property management can be broken down into two main categories – leasing and day-to-day management, and two sub-categories – accounting and compliance.
But, just as important as what property managers do, is what we don’t do; we’ll cover that, too.
How Do We Handle Leasing?
An important part of property management is getting your property leased to a quality renter. Here at Arbors, we believe that most problems in real estate investing can be solved by placing the right, high-quality resident into each property. We perform several types of screening in order to accomplish this; criminal, credit, income, landlord, sex-offender, terrorist, and pet screening, just to name a few.
In order for us to attract the best quality residents, we need to properly market your property by highlighting its features as well as pricing it appropriately.
A good property manager will look at the surrounding market and comparables to determine the best price to rent the property quickly while also giving the owner the best return on their money. We also handle all the inquiries and showings of the property, saving you a lot of time and money.
Once the property manager has found a qualified applicant, they should have a rock-solid lease to ensure that the owner is protected. Here at Arbors, we have a completely online lease signing process, making renting from us easy and efficient.
Once the lease is signed, deposits are paid, and move-in is scheduled, a good property manager will perform a move-in inspection to record the condition of the property at the time the resident moves in. We record the inspection with photos that we can reference again later when the resident decides to move out.
Speaking of inspections, routine inspections are important to ensure your property is well maintained. At Arbors, our leasing specialists perform an interim inspection several months prior to the lease expiration to ensure we know the condition of the property prior to renewing the lease. We share that inspection with our clients along with our recommendations so they can make the best decision for them.
Day-to-Day Property Management – What Does it Look Like?
After the property has been leased and the resident has moved in, we turn to our second category of property management: the day-to-day management.
Perhaps one of the most important items a property manager can do is collect the rent. After all, rent is what allows you to maintain the property and make a profit!
At Arbors Management, we provide several ways for residents to pay their rent; through a convenient online portal, by mail, by drop box at our main office, or by electronic cash payment at several convenient-store locations.
Money management is also a very important part of property management. A property manager will need to pay the expenses on your property, oftentimes from the rent that is collected and bill the residents for any appropriate expenses for your reimbursement.
Once all the expenses are paid, the property manager should have a way to get the investor their money. Here at Arbors, we do a direct deposit into your bank account at the end of each month.
Another aspect of property management is working directly with residents. On occasion, residents will have maintenance requests, emergencies, and general questions or problems while living at the property. These could range from leaky plumbing, heating issues, loss of employment, income changes, additions to their family, or neighbor disputes.
A property manager communicates directly with residents to solve these issues so that you don’t have to. Enforcing a lease can be difficult, so it’s the property managers job to walk the line between being compassionate while also enforcing the agreement. A good property manager should bring you solutions, not problems.
Addressing maintenance issues is another important part of property managers’ duty to maintain the value of your asset. Emergencies can happen at any time, day or night, and even on the weekends.
This is why a good property manager needs to have a plan on what to do when an emergency does happen. Here at Arbors we have a 24/7 dedicated phone number for maintenance emergencies and a network of contractors that can respond quickly in order to resolve any issue that might arise.
How Do Accounting and Compliance Come Into Play?
Two other categories of property management are accounting and compliance.
As an investor, you’ll want to see where your money is being spent and when rents are collected by your property manager. At Arbors, we have a full accounting staff that generates reports so that you can easily see the income for your property, expenses, and any invoices or bills associated with those expenses.
Transparency is important, but so is legal compliance! When renting out a property, there are a lot of laws, rules, and regulations that come with it. Your property manager should know the ins and outs of what is needed at the property to ensure you stay in compliance with these requirements to keep you protected. At Arbors, we have a compliance department that makes sure we cross our t’s and dot our i’s to make sure everyone is protected.
So What Don’t We Do as a Property Management Company?
Almost as important as what property managers do, is what we don’t do. From the information above, we can safely say property managers wear many different hats.
Even though we have many different roles, we are not tax professionals, attorneys, or debt collectors. Oftentimes a property manager can recommend a specialist in each of these areas. We may know a thing or two about each of these topics, but your property manager shouldn’t get involved in areas outside their expertise.
All in All…
The answer to the question “what exactly do property managers do?” is complicated. We discussed how a property manager should handle leasing, day-to-day management, and all aspects involved in those two main categories.
We also discussed that property managers should be transparent with your money through good accounting reports and remain compliant by staying up to date with rental property requirements.
While property managers wear many hats, as they should, they are not tax professionals, attorneys, or debt collectors.
Hopefully you now have a better idea of everything that property management encompasses.
If you have any questions about property management and how Arbors Management might help you with your property(ies), please don’t hesitate to reach out to us!
Phone: 1(800)-963-1280
Email: monroeville@arbors.com
