PM in California Refuses to do Criminal Background Check, Verify Applicant Occupation

PM in California Refuses to do Criminal Background Check, Verify Applicant Occupation

Investor · Anchorage, AK · Member since 2015 · 267 posts · 76 votes

I hired a PM in California in late March after my SFH rental became vacant because my tenant gave 30 days notice to vacate. She supervised some minor maintenance work and got a landscaper to clean up the yard and do weekly lawn service. The big problems began once she started advertising and screening tenants...she seems overly paranoid about Fair Housing laws and not diligent about tenant screening.

When I initially interviewed her, she said one of the things she does in her screening process is criminal background checks.   On the last 2 applicants, I noticed there was no criminal background check, only a search for "Filtered National Civil Court Records Search."  After I noticed this, I told her there's no criminal background check. She said "Yes, there is for 1 county, the county where the property is." After I insisted there was not, she called her screening company, www.Rentgrow.com, and they told her they have stopped doing all criminal background checks in California.  I asked her if she could do it through another organization, she said no but I'm welcome to find another agency to do a criminal background check myself, but I'd have to inform the tenant of this in advance.  

Then I had another problem that she doesn't thoroughly verify employment /occupation.   Someone applied who works at an outpatient surgery center.  Under "occupation" the applicant put, "Medical Records."  The PM is not willing to inquire as to if the applicant is a medical records clerk, a medical records supervisor, or something else.  Then, when an applicant puts down that they work doing In Home care, this PM is not willing to verify their state licensure as a CNA, LVN or RN.  She is only willing to call to verify that they work at "XYZ Surgery Center" (or wherever) and their rate of pay.

She sent me an excerpt that she says was lifted from a publication from "CA Dept of Fair Housing." Actually, she got the name wrong... the govt agency is "CA Dept of Fair Employment and Housing."  Based on her emails and texts and phone conversation, I feel like she doesn't understand the nuances or fair housing laws, and she is more concerned about avoiding being accused of a fair housing violation than in finding a quality tenant.

The property is in Stanislaus County California. It rents for $2200 a month and is a 3 bed/ 2 bath single family home.

What are your thoughts?  Thanks in advance :) 

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y

The problem appears to be that the PMC doesn't want to prove anything to you.

While owners can ask some tedious questions, screening applicants is a big issue and so should be addressed appropriately. 

Here's a publication from the tenant's point of view, but still useful - showing your PMC appears to be inaccurate.

https://calcivilrights.ca.gov/wp-content/uploads/sites/32/20...

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  • Investor · Anchorage, AK · Member since 2015 · 267 posts · 76 votes
    1y

    @Joe Homs thanks Joe!  I'd love to understand your process. For your rentals, do you post photos on a major website like Zillow?  Then direct prospects to apply online through RentSpree to do the application, criminal background check, rental history check, and eviction history check?  Then, if they meet your minimum standards, they are offered a showing with your property manager and the property manager verifies their employment, landlord references, etc? Have a great day!

  • Joe HomsBusiness Member
    Flipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes
    1y

    @Tricia O'Brien I list it on the MLS and it feeds it to Zillow, where all my leads come from. If not, listing it on Zillow directly works as well. Zillow has their own background check, but I have a "Free" account with the other two and the renters pay for everything. Once it's all filled out I go more in depth to check all the information provided.

    California is really tricky with Fair Housing Laws and Section 8 tenants, so be careful with this.  You cannot refuse a Section 8 request and they are NOT subject to background/credit/ or monthly payment rules since the government is paying the majority of the rent.

    Good Investing...

  • Investor · Anchorage, AK · Member since 2015 · 267 posts · 76 votes
    1y

    Your "free" accounts are with Rentspree and Zumper? 

    I know about how you can't flat out refuse to process Section 8 applicants in California.  

    Are you saying you cannot require Section 8 applicants to meet a certain standard, like gross income of 3x the rent and credit score minimum 600?

    Since I live outside CA, I'm going to have to hire someone to at least do property placement for me, if not full service property management, to fill this vacancy but I like to understand the processes, so PMs don't mislead me or rip me off.  Thanks :)

  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    1y

    My advice is to get out of California. I lived and worked in Stanislaus County, CA. It is the worst state to own rentals in.

  • Investor · Anchorage, AK · Member since 2015 · 267 posts · 76 votes
    1y

    @Adam Bartomeo when did you get out of owning rentals in Stanislaus county?

  • Investor · Anchorage, AK · Member since 2015 · 267 posts · 76 votes
    1y

    @Adam Bartomeo when did you get out of owning rentals in Stanislaus county?

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    The problem appears to be that the PMC doesn't want to prove anything to you.

    While owners can ask some tedious questions, screening applicants is a big issue and so should be addressed appropriately. 

    Here's a publication from the tenant's point of view, but still useful - showing your PMC appears to be inaccurate.

    https://calcivilrights.ca.gov/wp-content/uploads/sites/32/20...

  • Investor · Anchorage, AK · Member since 2015 · 267 posts · 76 votes
    1y

    @drew sygit,  Thanks, Drew. That's helpful.

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