From time to time, some folks still ask ..’why a rental application?
Unfortunately we live in a world where a handshake in no longer enough.
A hundred years ago, the tenant could simply be tossed out if they do not pay rent or harmed the home, not the case now.
The media, internet, and renter and landlord blogs are constantly full of what someone did, or did not do.. or should have done.. lots of complaining.. very little communication.
Someone once said that..." wisdom is knowledge gained without the pain of experience..."
In Oregon the legal possession of the property, changes from the owner to the tenant when you rent..
The renters give a small deposit, compared to a property worth hundreds of thousands of dollars... and they get to have exclusive control. Access by the owner or anyone not invited is severely controlled by law..
So that means the landlord cannot simply show up.. or ask someone to leave immediately if they were harming the property as an example.
The renter can put the property at risk or run up bills, easily.. and in effect hold it hostage and usually the owners only recourse is a legal action and/or a eviction process.. a serious matter and expensive for everyone to be sure.
A large portion of what has become by custom, the process of screening a person to rent a home has been developed over the years.. and there is no standard form in Oregon.
There are guidelines in Statute in some cases from City government to certainly the Federal level..
A rental application is a type of introduction so the owner may better know the person or see if the person is qualified to rent, by at least; income, anddebt ratios, background, and histories, such as credit reports, or public records..
Within the law.. one could fashion any type of application they want..
The most basic questions, unless someone just wants to act on trust or feeling, will typically ask for:
Name, and address,.. Id, numbers such as a SS number and or drivers license or state id card number.
How the person supports themselves, and would thus be able to pay the rents.. that is do they have enough provable income to support the rent.
Of course also references, for themselves from others or former landlords, etc. Also references from persons or companies who have extended the renter credit..
These are the basics to start...
This and more is then compared to the public record, and that of the Credit bureaus.. at the least verify they are who they say they are, and what is shown on the app.. compares favorably with the 3rd party information sources..
Yes part of gaining this knowledge protects the owner from making a poor choice.
You’re not asked for account numbers.
Asking for a Social Security or Drivers License number is very common.. and it not possible to get a correct report without one..
These two pieces of information are required also for about any loan for a far lesser amount than the worth of a house.
As for Property Managers.. they are additionally charged under State law with ‘Due Diligence’ .
Property managers act in protection of their clients under the laws ... a fiduciary responsibility.. it is called.
At the very core of the process are two folks wanting to exchange a home for rent.
Should a landlord, choose not to ask questions or none at all, it is their choice.. and they may or may not like the results of that choice.
Same with tenants who want to rent.. ask questions.. and remember
'if it is too good to be true it probably is'
I hear from both tenants and owners with some regularity.. regarding renting and applications.
This is just the start of a much larger subject, if there are questions on the application that you are concerned about, certainly I would love to talk about them..Thanks Ev