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November 2008 Affordable Housing Issue
RentGrow "In the Know"
Tenant Selection Plan Tune-Up
When we hear the word “requirement,” it’s easy to think “nuisance” or simply “procedural.” As we all know, affordable housing property managers are required to have tenant selection plans (TSP). But this requirement isn’t something you should simply fulfill and then forget about.
Your TSP should dictate your screening practices. Why? Well, your TSP outlines (or should outline) your screening criteria and your resident screening service needs to fulfill what you state in your TSP so it can provide accurate results. These results will help you make informed decisions about applicants. And the more informed your decisions are, the better chance that you’ll have tenants who pay their rent on time and who create the secure, peaceful community that’s likely to attract similar tenants. But it all starts with your tenant selection plan.
So how do you know if your TSP is in sync with your resident screening practices? Here are some tips for evaluating just that.
If you’re already working with a screening provider:
- How often do you review your TSP? We recommend revisiting it as often as needed to address occupancy and compliance concerns, but at least once per year. When performing your yearly assessment, ask yourself “what’s changed”—if anything—since the last time you reviewed it. For example, let’s say you’ve exhausted applicants on your waiting list, yet you’re still in need of occupancy. What changes, if any should you make in your screening criteria to accomplish additional acceptances? And, in turn, what changes should you then make to your TSP to reflect those changes? These are the types of items that you’ll need to update in your TSP.
Another reason to review your TSP is because enhancements to your screening service could require changes to the screening criteria outlined in your TSP. For example, RentGrow now offers a robust Address Search that can help verify your applicant’s identity. However, you shouldn’t use this feature until you explain in your TSP how you’ll be using this information.
- How often do you communicate with your screening provider? It’s not enough to make changes to the screening criteria in your TSP if your screening provider doesn’t know about the changes or cannot accommodate the changes. Every time you revisit your TSP—even if you haven’t made any changes—have a conversation with your screening provider’s rep to ensure that he or she knows and understands what your goals and needs are.
- How are you ensuring that your site staff and managers are informed? When we say “informed,” we mean informed about your TSP’s content and changes and how your screening provider gathers and reports information. We recommend that the tenant selection plan be included in employee training programs, especially those geared towards new employees. And keep in mind that quality screening providers will be readily available to answer questions from your new and veteran staff members.
If you’re looking for a new screening provider:
- Be wary of screening providers who offer a one-size-fits-all approach. Rarely do these approaches meet all the needs of one customer. Be cautious of providers that don’t deeply understand affordable housing management. It’s important to work with a company like RentGrow that can customize your resident screening product to fulfill the criteria you outline in your TSP.
- Be wary of screening providers who don’t ask to see your TSP first. Share your TSP with your screening provider. Better yet, work with a company that understands the TSP’s importance and that requests seeing it before setting up your screening criteria.
Don’t think of your TSP as just another government-imposed requirement. Consider it an important tool that can influence your screening practices so that you get better, more accurate results.
Would you like to learn how we can customize our resident screening products to fulfill the needs outlined in your tenant selection plan? Contact us today. Or visit our website to learn more.
© 2008, RentGrow, Inc., Resident Screening Experts. For permission to reprint this article or to sign up to receive "In the Know," send an email to newsletter@rentgrow.com.
If you have additional questions about other aspects of your resident screening strategy you can contact RentGrow at 1-800-RENTGROW (1-800-736-8476) or visit our website at http://www.rentgrow.com. | 
