Why You Should Use a Rental Application

Introduction

• Presenter: Vitaliy Volpov, attorney, real estate investor, and part owner of a real estate brokerage in upstate NY.
• Channel: Discusses legal concepts, real estate investing strategies, and personal finance.
• Disclaimer: Not legal or financial advice; for educational and entertainment purposes only.

Importance of a Rental Application

• Vetting Tenants: More comprehensive than just background and credit checks.
  • Truthfulness: Cross-reference tenant's responses regarding past residences.
  • Financial Responsibility: Insight into tenant's view on finances and responsibilities.
  • Information Gathering: Collect data for potential future collection of money judgements.
  • Legal Protection: Mitigate fair housing discrimination claims if crafted correctly.
• Potential Pitfalls: Poorly crafted applications can violate fair housing laws and increase liability.

Essential Information in a Rental Application

1. Personal Information

   • Full name, Social Security number, Date of birth, Driver’s license number, Phone number, and Email address.
   • Important for identifying and potentially suing tenant if necessary.

2. Rental History

   • Past residences (last 5 years), Landlord names and contacts, Move-in/out dates, Reasons for moving.
   • Call previous landlords for references; prioritize prior over current landlord's info.

3. Employment Information

   • Employer’s name, Contact info, Supervisor, Title, Monthly gross income (should be 3x monthly rent).
   • Other income sources.
   • Verify income through screening services like RentPrep.

4. Financial Responsibility and Mindset

   • Probing questions: Lease term intention, Smoking habits, Potential rent payment issues, etc.
   • Avoid prohibited questions, such as criminal history or eviction records in some jurisdictions.
   • Be cautious with questions about pets and occupants to avoid discrimination perceptions.

5. Qualification Standards

   • Provide applicants with selection criteria: Minimum credit score, Positive landlord references, Income requirements.
   • Ensure criteria are consistent between advertising and application to protect against discrimination claims.
   • Importance of consistent standards and implementation.

6. Authorization for Background Checks

   • Inform applicants of checks (background, credit, employment, landlord history).
   • Obtain express written consent from applicants for third-party verifications.

Final Reminders

• Sample Application: Link provided for a free sample (not jurisdiction-specific).
• Legal Consultation: Always consult a knowledgeable attorney for compliance with local laws.
• Engagement: Encourage viewers to ask questions, like, and subscribe.