As a professional property manager you always screen an applicant and do the requisite background, rental history, employment, credit check and so on.
What about that new property you just added to your portfolio? Did you screen the owner? How’s the owner’s position with the mortgage?
Some have estimated more than 300,000 tenants have been evicted from rental homes during 2008 after the properties went through foreclosures. Consumer advocates are urging renters to “check out the landlord’s credit”.
If you attended the November NEFARPM Luncheon you probably carried a Solvency Letter back to the office with you. Use it. Some property managers are even going so far as pulling a credit history and perusing courthouse records. This is a good time to implement a company policy that includes asking the owner if they are current with the mortgage, taxes, insurance and other fees such as H.O.A. fees. Don’t be shy about asking the owner directly. It’s just good business and it could also serve to limit your liability later on in the event of a foreclosure. What ever you do, be diligent and consistent.
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