PM Tenant Screening - Turning over records to Property Owner

PM Tenant Screening - Turning over records to Property Owner

Member since 2019 · 3 posts · 2 votes

General Question: If I am hiring a Property Manager(PM) to market a property, and locating and screen tenants under a 'Leasing Only' PM agreement, is there any expectation that the PM will pass own the tenant's application records, such as a SSN# and a copy of a DL? Is there specific regulation that says they can't provide this information, or that the property owner is entitled to this information? Property is located in Texas.

I have contacted 3 PM with these record handover requirements. The responses I've gotten from those companies have been very much against providing any tenant information out. Even though the property owner will be managing the property. 

My situation: I recently had a tenant break a 24-month lease (only 10 months honored), and I was not given this information. After push and shove the PM provided this information. They stated they had released the information as an exception, but couldn't guarantee they could in the future for the same situation. 

This seems to be like a red line to me, especially if you need to properly identify a tenant to collect damages. I guess this question has not been litigated(at least online) or sorted out?

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    In your situation, I run the screening and approval is made in coordination with the Landlord. Once the lease is signed and funds collected, I hand everything over to the Landlord. I keep a copy for our records, per state law, but I make sure the owner has everything. This is normal and legal.

    If I am managing the property full-time, I do not share application information with the owner. My policy is to screen applications and make the rental decision without input from the owner. I retain the records because I'm managing the property. If I ever transfer the property to the owner or another property manager, I transfer the records with it.

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