Landlord Profits

New Survey shows that tenants feel safer in buildings where 100% of residents are screened

quique@panoramapress.net (Quique Lopez) — Tue, 27 Oct 2009 17:04:00 +0000

Renters seek a safe haven when searching for an apartment. According to a national Apartments.com survey--conducted during national crime prevention month--96 percent of respondents said neighborhood crime rate influences where they choose to live. More than 750 renter survey respondents stated violent crimes including assault and battery followed by theft and burglary concern them most. To protect themselves, renters are acting responsibly including keeping strangers out of the apartment community and are even willing to pay more in rent to live where they feel secure.

Survey results also reveal renters do not feel as safe as they have in previous years. While more than 66 percent of renters said they feel extremely to moderately safe living in their current neighborhood, a 2006 Apartments.com survey on apartment safety and security shows this figure has dropped by 12 percent and the number of renters who said they do not feel safe has increased by 8 percent.

Renters are looking out for themselves by keeping a pulse on the neighborhood. A quarter of respondents who have been living in the same neighborhood for more than a year said there has been an increase in crime-related activity compared to the previous year. To safeguard themselves in their apartments, renters are taking preventative measures including never buzzing in strangers or allowing anyone they do not recognize inside the apartment community when coming and going. Renters are also installing deadbolts, owning dogs and using timers for lighting, radios and the television when they are not at home.

In addition to taking safety matters into their own hands, renters are looking--and willing--to pay more in rent for specific safety features. The top five safety features renters said they would pay more to have, when asked to choose all that apply, are:

1. In-unit security alarm system: 49%
2. 24/7 building security patrol guards and a doorman: 45%
3. Security cameras on the apartment community property: 42%
4. Mandatory background screening for all residents: 30%
5. Cylinder deadbolt locks on windows and doors: 29%

To answer the apartment safety needs of their residents, many professionally managed apartment communities and private landlords are doing their part to keep renters' minds at easy by providing peepholes on apartment doors, securing windows and doors with locks and running background checks on potential residents.

For those who do not have an alarm system in their apartment or security guards patrolling the grounds, there are cost-effective ways renters can secure their apartment. Many break-ins can be prevented with mini-entry alarms, wireless door chimes, sensors and motion detectors. Decals that read "Beware of Dog" or announce the apartment has an alarm system or a neighborhood watch in effect can raise doubt among intruders, turning them away from the apartment building.

The Internet continues to be a Critcial Marketing Partner

quique@panoramapress.net (Quique Lopez) — Sat, 24 Oct 2009 16:14:00 +0000

Most property managers and landlords understand that most of their tenant prospects will start looking for an apartment or rental housing by looking on the internet first. Recent research from the Pew Institute has shown that almost half (49%)of internet users look for information from an internet search engine each day. These searchers are from all age and demographic groups. The National Multi Housing Council produced a White Paper on Internet Marketing that found that 70% of renters begin their apartment search online and many owners said that more than 50 percent of their leasing activity is from online sources.

Is it enough to have a website and advertise your properties on an Internet Listing Service? Not in today's world with the expanded use of Social Media. You will find success by engaging with your customers. But this engagement will need to be on their terms. They will need you to provide information, photos,and possibly prices 24/7. And they may need to see your Facebook Page, Twitter Page or access information on their mobile device.

The obvious place to start is to review your own website. You should review the traffic to your website on a continual basis. If you see any drop or changes in activity you might want to consider changing the content of your website. You should do a Google search to try and find your website and also competitive properties. If your website does not land on the first few search pages of Google or Bing, you need to make some changes.

An Atlanta Based firm, Panorama Press, has developed a very effective marketing program for property managers that provides multiple websites to attract potential renters, Facebook and Twitter Pages and a web-based community portal to help with tenant retention. Why multiple websites? Their experience and research has shown that prospects search for apartments using many different search terms.The best way to reach more potential renters is to have websites designed to specifically capture the exact way prospects are looking for information. This goes back to engagement. Your property needs to be seen on many formats as the top choice when potential renters are looking. For more information please go to www.panorampress.net.

Multifamily Properties: Strategies for Increasing Profits

quique@panoramapress.net (Quique Lopez) — Mon, 05 Oct 2009 13:04:00 +0000

Everyone is well aware of the cyclical nature of commercial real estate, as well as the potential for significant profits to be gleaned by purchasing assets before they rise in price. In an article entitled “10 Strategies for Apartment Profits in 2009 and Beyond”, Patrick S. Simons offers specific suggestions on how to make money out of distressed situations in a challenging real estate environment.

1. Analyze markets so that you understand the economic fundamentals that drive them and can anticipate which ones are most likely to rebound first and strongly.

2. Plan by identifying deal parameters (such as targeted geography) and the associated time-lines for staffing and raising necessary capital.

3. Network with those who control or may control in the future the real property that your plan has denoted. This will enable you to generate new deal flow prior to an upturn in the market.

4. Expand by considering entry into areas where you were previously prohibited by price. They are now likely to be more affordable.

5. Hire because this is the time when you are likely to find experienced talent that might not have been available previously and may be open to a variety of working arrangements, such as consulting or temporary assignments.

6. Cash will allow you to make the best acquisition deals in the current slowdown. Strategies for raising capital include tapping existing investors, refinancing
or drawing capital from your current portfolio, and seeking new investors, such as those who benefit from current currency exchange advantages.

7. Operations, at both the corporate and operating property levels, should be scrutinized for ways to reduce expenses as well as for areas where income might be enhanced.

8. Negotiate with your service providers by reviewing their fees, delivery schedules, and personnel assigned to your projects.

9. Time Deliveries for renovations of existing apartment properties and for new construction. Ideally, your units will become available when the market recovers.

10. Build, even if you have not considered it in the past, because labor costs are lower and the quality of work has improved.

Mr. Simons summarizes by emphasizing the following: plan for the recovery, rather than focusing on today’s gloomy news; and act upon your market analysis so that you will thrive in the future. Details of his remarks are available at www.aoausa.com.
Craig Higdon

“The Investment Property Insider” is published by Craig S. Higdon, a veteran commercial mortgage banker. He publishes the e-zine and blog, http://www.InvestmentPropertyInsider.com, for commercial real estate investors, developers, and industry professionals. Visit the blog and get this free report: “The 7 Biggest Loan Mistakes Real Estate Investors Make And How To Avoid Them.” ’

Top Legal Issues Impacting Landlords

quique@panoramapress.net (Quique Lopez) — Sat, 03 Oct 2009 14:59:00 +0000

(Chicago, IL, Aug. 12, 2009) – A just-released survey identifies current and emerging legal/liability issues impacting real estate management professionals. Sponsored by the Institute of Real Estate Management (IREM®) and funded jointly by IREM and the NATIONAL ASSOCIATION OF REALTORS® (NAR), the survey queried IREM members in leadership positions with the organization about legal problems confronting them and their industry colleagues, and elicited perceptions about the impact of current economic conditions on these problems. An analysis of upwards of 700 relevant cases decided over the past two years as well as related legislative and regulatory activities during the same period also are included in this independently conducted survey.

IREM President Pamela W. Monroe, CPM®, explaining the rationale for the survey, stated: “A while back, IREM members identified ‘risk management’ as one of several critical issue affecting today’s real estate management industry (others included troubled properties, sustainability, technology, workforce development, and business competition). We undertook the survey to help our members and industry colleagues’ better address proliferating risk management challenges in their business practices, thereby enhancing their performance on behalf of the owners, investors and other constituents they serve.”

TOP CONCERNS NOW:
DEBT COLLECTION, SLIP AND FALL DISPUTES, FRIVILOUS LAWSUITS
The most significant current legal problems survey respondents identified are those relating to the day-to-day business of managing properties. Debt collection is a major area of concern, with 69 percent of respondents stating that it was a significant source of current disputes. Among the economic factors adversely affecting debt-collection activities, said respondents, are the large numbers of retailers going out of business, growing lease defaults, and increasing numbers of residential tenants losing their jobs.

“Slip–and-fall” accidents and frivolous lawsuits, cited by 69 percent and 44 percent of respondents, respectively, also rank as top causes of current disputes. As with debt collection, many respondents believe the economic downturn is exacerbating both types of disputes. Some suggest that the depressed economy will lead more people to try to cash in on slips and falls. Others suggest that opportunists looking for easy money target landlords in frivolous suits, hoping to cheat the system in these hard economic times. Similarly, events on a property – situations in which a landlord or manager is blamed for a crime perpetrated by a third party – which ranked right under frivolous lawsuits as a key concern, is linked strongly to the recessionary environment. Some respondents cited the lack of jobs and other adverse economic conditions as reasons for the increasing the crime rate. Others observed that as the economy continues to decline, areas that were once rarely affected (by crime) have now been hard hit.

HOT ISSUES ON THE HORIZON:
WRONGFUL TERMINATION AND FAIR HOUSING
When asked to predict which problems would become more significant over the short term – the next two years – survey respondents again cited debt collection , frivolous lawsuits, slips and falls and events on a property. One employment issue – wrongful termination – also is seen to be increasing in importance.
By comparison, when the respondents were asked to rank potential future issues, several fair housing issues -- handicap discrimination, advertising and target marketing, familial status discrimination and race and religious discrimination – ranked at the top of, or high on, the list.

TRAINING NEEDS IDENTIFIED
Survey respondents also weighed in on where additional training may be needed to better deal with key legal issues and concerns. Their responses generally track the key issues identified in other parts of the survey, with training needs in the areas of debt collection and slip-and-fall incidents topping the list. Training also is perceived to be quite important to better handle issues related to potentially libelous occurrences on properties other than slips and falls; also, employee defamation and wrongful termination, and aspects of fair housing.

KEY FINDINGS OF CASE LAW AND STATUTE ANALYSIS
Here are some top-line survey findings:

* Debt Collection – Most of the 22 cases examined were dismissed or ended with a summary judgment for the defendant. The defendant was found liable in only case.
* Slip-and-Fall – 261 cases and jury-verdict reports were analyzed. In the 185 cases in which liability was determined, the landlord or management company was found not liable 70 percent of the time. The finding of no liability was made before trial in 22 percent of all cases. And most cases (56 percent) in which the defendant was found not liable required a trial. This is unusual as most cases involving other premises liability issues that decided for the landlord or management company did not require trials.
* Crimes on a Property – 61 case law and jury verdict reports were examined. In the 43 cases in which liability was determined, the landlord or management company was found not liable 77 percent of the time, most often without a trial.
* Condition of Tenant’s Premises – Although survey respondents did not indicate a significant number of current disputes in this area, the case-law survey indicated otherwise. Some 212 relevant cases were decided over the past two years. In cases in which liability was determined, the landlord or management company was found not liable 60 percent of the time. Moreover, the findings of no liability were made before trail in 28 percent of all 212 cases. No trial was required in 73 percent of the cases in which the defendant was found not liable. On a separate but related note, the most common situations giving rise to large verdicts and settlements for landlords and real estate managers arose in residential settings and involved lead-based paint, fires, and dangerous dogs.

ABOUT THE INSTITUTE OF REAL ESTATE MANAGEMENT
The Institute of Real Estate Management (IREM®) is celebrating its 75th anniversary in 2008. Major sponsors of the year-long celebration areYardi Systems, a leading provider of high-performance software solutions for the real estate industry, and the REALTORS® Commercial Alliance (RCA), the collective commercial constituency within the National Association of REALTORS®.

For more than seven decades, IREM has been the source for education, resources, information, and membership for real estate management professionals. An affiliate of the National Association of Realtors®, IREM is the only professional real estate management association serving both the multi-family and commercial real estate sectors. With 80 U.S. chapters, eight international chapters, and several other partnerships around the globe, IREM is an international organization that also serves as an advocate on issues affecting the real estate management industry.

Membership includes more than 18,000 individual members and 500 corporate members. IREM promotes ethical real estate management practices through its credentialed membership programs, including the Certified Property Manager® (CPM®) designation, the Accredited Residential Manager® (ARM®) certification, the ACoMcertification, and the Accredited Management Organization® (AMO®) accreditation. These esteemed credentials certify competence and professionalism for those engaged in real estate management. In addition, IREM offers Associate, Student and Academic memberships.

Collectively, IREM CPM® Members in the United States manage over $1.5 trillion in real estate assets, including 8.4 million residential units and 8.4 billion net square feet of commercial space. An additional 977,400 residential units are managed by IREM ARM® Members. IREM Members are employed by some of the most prestigious real estate firms in the world and nearly 70% hold upper-level management positions. Due to their professionalism and vast experience, property owners and investors worldwide continually seek out the management services of IREM Members.

To learn more about the Institute of Real Estate Management and its chapter network, call (800) 837-0706, Ext. 4650 (outside the U.S. call (312) 329-6000) or visit www.irem.org.

More Employers Screening Candidates via Social Networking Sites

quique@panoramapress.net (Quique Lopez) — Fri, 18 Sep 2009 17:41:00 +0000

Five tips for creating a positive online image

By Rosemary Haefner, Vice President of Human Resources at CareerBuilder

Gone are the days when all job seekers had to worry about was their résumés and cover letters. Today, those documents remain a staple of the job-search process, but they are joined by a growing phenomenon: social networking.

Forty-five percent of employers reported in a June 2009 CareerBuilder survey that they use social networking sites to screen potential employees, compared to only 22 percent of employers last year. Eleven percent of employers plan to start using social networking sites for the screening process. More than 2,600 hiring managers participated in the survey.

Of those who conduct online searches/background checks of job candidates, 29 percent use Facebook, 26 percent use LinkedIn and 21 percent use MySpace. One-in-ten (11 percent) search blogs while 7 percent follow candidates on Twitter.

Additionally, 16 percent of workers have used similar social networking sites as part of their job search.

"In this difficult job market, online networking is an important piece of the puzzle for workers wishing to build professional relationships, and ultimately, connect with their next great job," said Liz Harvey, senior director of online products for CareerBuilder, which just launched its own online community BrightFuse. "With more than 1.6 million users, BrightFuse.com has become a thriving professional community. Workers of all levels can use BrightFuse.com to have that important open dialogue -- while promoting themselves and recommending others."

While social networking is a great way to make connections with potential job opportunities and promote one's personal brand, job seekers must ensure they are using these sites to their advantage by conveying a professional image and underscoring their qualifications.

Many job seekers seem to be doing this, as 18 percent of employers said they found content on social networking sites that encouraged them to hire the candidate. Some examples include:

Profile provided a good feel for the candidate's personality and fit within the organization -- 50 percent
Profile supported candidate's professional qualifications -- 39 percent
Candidate was creative -- 38 percent
Candidate showed solid communication skills -- 35 percent
Candidate was well-rounded -- 33 percent
Other people posted good references about the candidate -- 19 percent
Candidate received awards and accolades -- 15 percent

Many job seekers, however, are doing the opposite and not being mindful at all of the content they're posting online.

Why employers disregard candidates after screening online

Thirty-five percent of employers reported they have found content on social networking sites that caused them not to hire the candidate, including:

Candidate posted provocative or inappropriate photographs or information -- 53 percent
Candidate posted content about them drinking or using drugs -- 44 percent
Candidate bad-mouthed their previous employer, co-workers or clients -- 35 percent
Candidate showed poor communication skills -- 29 percent
Candidate made discriminatory comments -- 26 percent
Candidate lied about qualifications -- 24 percent
Candidate shared confidential information from previous employer -- 20 percent

Here are five tips for job seekers to keep a positive image online:

1. Clean up digital dirt before you begin your job search. Remove any photos, content and links that can work against you in an employer's eyes.

2. Consider creating your own professional group on sites like Facebook or BrightFuse.com. It's a great way to establish relationships with leaders, recruiters and potential referrals.

3. Keep gripes offline. Keep the content you post focused on positive things, whether it's related to professional or personal information. Make sure to highlight specific accomplishments inside and outside of work.

4. Be selective about whom you accept as friends. Don't forget others can see your friends when they search for you. Monitor comments made by others and consider using the "block comments" feature. Even better, set your profile to "private" so only designated friends can view it.

5. If you're still employed, don't mention your job search in your Tweets or status updates. There are multiple examples of people who have gotten fired as a result of doing this. In addition, a potential employer might assume that if you're willing to search

Rosemary Haefner is the Vice President of Human Resources for CareerBuilder.com. She is an expert in recruitment trends and tactics, job seeker behavior, workplace issues, employee attitudes and HR initiatives. Read the CareerBuilder job seeker blog at www.TheWorkBuzz.com.

Three Ways Tenant Screening Improves Your Neighborhood

quique@panoramapress.net (Quique Lopez) — Fri, 18 Sep 2009 17:22:00 +0000

by Manuel Lopez

As active stewards of your community, you have the ability to positively impact the quality of life within your neighborhood - not just through your involvement and leadership, but also through protective services that you can recommend to fellow homeowners.

Reviewing the criminal and credit background of prospective renters online is one of the quickest and easiest ways to reduce potential crime, property damage and other rental issues within your neighborhood. So with web-based tenant screening resources readily available, why don't more homeowners conduct applicant background checks before renting out their property?

The unfortunate answer is most individual property owners don't know they can legally and easily review a prospective renter's criminal and credit background with http://www.landlord2landlord.com/ before making a leasing decision. Here are the top three ways tenant screening improves your neighborhood:

1. Improve Neighborhood Safety: Know Your New Neighbor

The old adage "You can't judge a book by its cover" still stands true. Stories abound of the "guy next door" who surprised everyone with their unknown past or illicit actions. As more people move across the country for work, family and other reasons, personal referrals are harder to verify and are challenging to complete. Unfortunately, though, criminals also have a habit of moving to leave behind their past.

With online tenant verification services, you can instantly verify the individual is who they say they are, and also check county courthouse records, state and national criminal databases (including sex offender registries) to see if they have a criminal record. Individual credit reports and eviction records can be checked as well.

2. Protect Neighborhood Appearance, Property Value and Your Investment

Tenant screening adds a layer of risk management for property owners by offering a financial snapshot of your prospective renter. Most landlords spend less than $45 to check an applicant's background before making a leasing decision, which is FAR less than a property owner might lose in unpaid rent and property damages. Landlords typically pass this cost on to the prospective tenant as a rental application fee. And, in the event that a renter does fail to pay on a timely basis, many online screeners also offer collection and bad debt reporting services to help ensure the fraudster doesn't get away scott-free.

3. Build a Better Sense of Community: Reduce Rental Turnover

Evaluating prospective renters reduces the odds of having to replace that renter sooner than expected, which lowers the amount of work you have to do to manage your rental property. In turn, fewer people will be moving in and out of the neighborhood, giving everyone a better chance to get to know each other and grow as a community.

Check Your Renters' Criminal and Credit Background Today!
The overall positive impact of tenant screening has led a growing number of homeowner and neighborhood associations to enact rules requiring background checks on renters within the community. Whether you are considering this option or not, Landlord2Landlord considers it a privilege to assist you in making your neighborhood a safer place.

For more articles like this, please join our Newsletter.

About Landlord2Landlord
Landlord2Landlord (http://www.landlord2landlord.com/) is a residential tenant screening company that partners with property management companies and homeowner associations to help communities reduce neighborhood crime, and to protect homeowners from renters with criminal backgrounds or a history of evictions and poor credit

Our website is easy to use, available 24 hours per day, and delivers instant, inexpensive results that comply with FCRA and Fair Housing Act requirements. See our Success Stories at http://www.landlord2landlord.com/SuccessStories2.aspx.

We also have a free monthly e-newsletter that contains information to help homeowners maintain and lease their residential properties more effectively. To receive the e-newsletter, please visit http://www.landlord2landlord.com/ezinesignup.aspx.

How to Spot Fraud on a Renter’s Application

quique@panoramapress.net (Quique Lopez) — Fri, 18 Sep 2009 16:15:00 +0000

For landlords, application fraud is false and deceptive statement of fact intended for landlords to rely upon in order to give up their legal right to their property in return for rent. Landlords should remember that when a potential renter applies to rent a unit, the landlord is in essence granting credit to the renter. Renter scams are different and change frequently. Landlords who fall victim to application fraud lose thousand of dollars in lost rent and damages as well experience great inconvenience and anxiety.

Many of the fraudulent applications share common characteristics that can alert landlords to take further investigation. The characteristics or traits may signal a pattern of irregularities that indicate the possibility of fraud but should not be viewed as proof of fraud. It is very hard to prove fraud, in the courts, with only traits of fraud. The following are characteristics of fraudulent behavior that have been used on landlords in the past and are not intended to be proof of fraud. They should simply be viewed as wisdom from Landlord2Landlord and a reminder to look carefully at your applications.

"The Social Security number is omitted or copied"

Name

-Unusual name arrangement such as two first names used as given and surnames

-Unusual sounding names which are not recognizable and impossible to pronounce coupled with common names.

-Names of known personalities such as Magic Johnson, Tiger Woods or Brett Farvre.

Employment

-The job title is misspelled.

-The job title is unusual. For example: Lion Tamer.

-The job title does not fit the nature of the employment.

-The salary appears to be out of the range for the kind of work. For example: few roofers earn over 50K a year.

-Salary includes cents or other symbols.

-Years employed does not correlate with the age of the applicant.

-When following up with the employer, the employer answers his own phone or has an answering machine with out identifying the company.

-Net/gross income is omitted or copied.-Net and gross income is the same or gross income is more than net income.-Additional or supplemental income is disproportionate the net income.

Bank Accounts

-Account numbers are omitted

-Reference numbers are abbreviated or have strange symbols.

-Recently opened accounts

-Credit references are in the same sequence as on the credit report.

-Payment accounts are exactly the same.

-Credit references are from unknown companies or closed accounts.

-References do not know the applicant.

-There is significantly more money in checking versus savings accounts.

Other Sections of the Application

-Misspellings in the application

-Applicant used P.O.boxes for references or addresses

-Additional residents have different last names

-The first four digits of the credit card do not coincide with the issuing bank’s tax I.D. number.-Application for a second credit card for the same band.

-The phone number and area code do not coincide with the address

-The nearest relative is often a professional like a doctor in an attempt to build credibility.

FCRA Obligations

quique@panoramapress.net (Quique Lopez) — Fri, 18 Sep 2009 15:53:00 +0000

OBLIGATIONS OF USERS UNDER THE FCRA

The federal Fair Credit Reporting Act (FCRA) requires that this notice be provided to inform users of consumer reports of their legal obligations. State law may impose additional requirements. This first section of this summary sets forth the responsibilities imposed by the FCRA on all users of consumer reports. The subsequent sections discuss the duties of users of reports that contain specific types of information, or that are used for certain purposes, and the legal consequences of violations. The FCRA, 15 U.S.C. 1681-1681u, is set forth in full at the Federal Trade Commission's Internet web site (http://www.ftc.gov/).

I. OBLIGATIONS OF ALL USERS OF CONSUMER REPORTS

A. Users Must Have a Permissible Purpose
Congress has limited the use of consumer reports to protect consumers' privacy. All users must have a permissible purpose under the FCRA to obtain a consumer report. Section 604 of the FCRA contains a list of the permissible purposes under the law. These are:

As ordered by a court or a federal grand jury subpoena. Section 604(a)(1)
As instructed by the consumer in writing. Section 604(a)(2)
For the extension of credit as a result of an application from a consumer, or the review or collection of a consumer's account. Section 604(a)(3)(A)
For employment purposes, including hiring and promotion decisions, where the consumer has given written permission. Sections 604(a)(3)(B) and 604(b)
For the underwriting of insurance as a result of an application from a consumer. Section 604(a)(3)(C)
When there is a legitimate business need, in connection with a business transaction that is initiated by the consumer. Section 604(a)(3)(F)(i)
To review a consumer's account to determine whether the consumer continues to meet the terms of the account. Section 604(a)(3)(F)(ii)
To determine a consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status. Section 604(a)(3)(D)
For use by a potential investor or servicer, or current insurer, in a valuation or assessment of the credit or prepayment risks associated with an existing credit obligation. Section 604(a)(3)(E) \
For use by state and local officials in connection with the determination of child support payments, or modifications and enforcement thereof. Sections 604(a)(4) and 604(a)(5) In addition, creditors and insurers may obtain certain consumer report information for the purpose of making unsolicited offers of credit or insurance. The particular obligations of users of this "prescreened" information are described in Section V below.

B. Users Must Provide Certifications Section 604(f) of the FCRA prohibits any person from obtaining a consumer report from a consumer reporting agency (CRA) unless the person has certified to the CRA (by a general or specific certification, as appropriate) the permissible purpose(s) for which the report is being obtained and certifies that the report will not be used for any other purpose.

C. Users Must Notify Consumers When Adverse Actions Are Taken The term "adverse action" is defined very broadly by Section 603 of the FCRA. "Adverse actions" include all business, credit, and employment actions affecting consumers that can be considered to have a negative impact -- such as unfavorably changing credit or contract terms or conditions, denying or canceling credit or insurance, offering credit on less favorable terms than requested, or denying employment or promotion.

1. Adverse Actions Based on Information Obtained From a CRA If a user takes any type of adverse action that is based at least in part on information contained in a consumer report, the user is required by Section 615(a) of the FCRA to notify the consumer. The notification may be done in writing, orally, or by electronic means. It must include the following:

The name, address, and telephone number of the CRA (including a toll-free telephone number, if it is a nationwide CRA) that provided the report.

A statement that the CRA did not make the adverse decision and is not able to explain why the decision was made.

A statement setting forth the consumer's right to obtain a free disclosure of the consumer's file from the CRA if the consumer requests the report within 60 days.

A statement setting forth the consumer's right to dispute directly with the CRA the accuracy or completeness of any information provided by the CRA.

2. Adverse Actions Based on Information Obtained From Third Parties Who Are Not Consumer Reporting Agencies If a person denies (or increases the charge for) credit for personal, family, or household purposes based either wholly or partly upon information from a person other than a CRA, and the information is the type of consumer information covered by the FCRA, Section 615(b)(1) of the FCRA requires that the user clearly and accurately disclose to the consumer his or her right to obtain disclosure of the nature of the information that was relied upon by making a written request within 60 days of notification. The user must provide the disclosure within a reasonable period of time following the consumer's written request.

3. Adverse Actions Based on Information Obtained From Affiliates If a person takes an adverse action involving insurance, employment, or a credit transaction initiated by the consumer, based on information of the type covered by the FCRA, and this information was obtained from an entity affiliated with the user of the information by common ownership or control, Section 615(b)(2) requires the user to notify the consumer of the adverse action. The notification must inform the consumer that he or she may obtain a disclosure of the nature of the information relied upon by making a written request within 60 days of receiving the adverse action notice. If the consumer makes such a request, the user must disclose the nature of the information not later than 30 days after receiving the request. (Information that is obtained directly from an affiliated entity relating solely to its transactions or experiences with the consumer, and information from a consumer report obtained from an affiliate are not covered by Section 615(b)(2).)

II. OBLIGATIONS OF USERS WHEN CONSUMER REPORTS ARE OBTAINED FOR EMPLOYMENT PURPOSES If information from a CRA is used for employment purposes, the user has specific duties, which are set forth in Section 604(b) of the FCRA. The user must:

Make a clear and conspicuous written disclosure to the consumer before the report is obtained, in a document that consists solely of the disclosure, that a consumer report may be obtained.
Obtain prior written authorization from the consumer.
Certify to the CRA that the above steps have been followed, that the information being obtained will not be used in violation of any federal or state equal opportunity law or regulation, and that, if any adverse action is to be taken based on the consumer report, a copy of the report and a summary of the consumer's rights will be provided to the consumer.
Before taking an adverse action, provide a copy of the report to the consumer as well as the summary of the consumer's rights. (The user should receive this summary from the CRA, because Section 604(b)(1)(B) of the FCRA requires CRAs to provide a copy of the summary with each consumer report obtained for employment purposes.)

III. OBLIGATIONS OF USERS OF INVESTIGATIVE CONSUMER REPORTS Investigative consumer reports are a special type of consumer report in which information about a consumer's character, general reputation, personal characteristics, and mode of living is obtained through personal interviews. Consumers who are the subjects of such reports are given special rights under the FCRA. If a user intends to obtain an investigative consumer report, Section 606 of the FCRA requires the following:

The user must disclose to the consumer that an investigative consumer report may be obtained. This must be done in a written disclosure that is mailed, or otherwise delivered, to the consumer not later than three days after the date on which the report was first requested. The disclosure must include a statement informing the consumer of his or her right to request additional disclosures of the nature and scope of the investigation as described below, and must include the summary of consumer rights required by Section 609 of the FCRA. (The user should be able to obtain a copy of the notice of consumer rights from the CRA that provided the consumer report.)
The user must certify to the CRA that the disclosures set forth above have been made and that the user will make the disclosure described below.
Upon the written request of a consumer made within a reasonable period of time after the disclosures required above, the user must make a complete disclosure of the nature and scope of the investigation that was requested. This must be made in a written statement that is mailed, or otherwise delivered, to the consumer no later than five days after the date on which the request was received from the consumer or the report was first requested, whichever is later in time.

IV. OBLIGATIONS OF USERS OF CONSUMER REPORTS CONTAINING MEDICAL INFORMATION Section 604(g) of the FCRA prohibits consumer reporting agencies from providing consumer reports that contain medical information for employment purposes, or in connection with credit or insurance transactions, without the specific prior consent of the consumer who is the subject of the report. In the case of medical information being sought for employment purposes, the consumer must explicitly consent to the release of the medical information in addition to authorizing the obtaining of a consumer report generally.

V. OBLIGATIONS OF USERS OF "PRESCREENED" LISTS The FCRA permits creditors and insurers to obtain limited consumer report information for use in connection with unsolicited offers of credit or insurance under certain circumstances. Sections 603(l), 604(c), 604(e), and 615(d) This practice is known as "prescreening" and typically involves obtaining a list of consumers from a CRA who meet certain pre established criteria. If any person intends to use prescreened lists, that person must (1) before the offer is made, establish the criteria that will be relied upon to make the offer and to grant credit or insurance, and (2) maintain such criteria on file for a three-year period beginning on the date on which the offer is made to each consumer. In addition, any user must provide with each written solicitation a clear and conspicuous statement that:

Information contained in a consumer's CRA file was used in connection with the transaction.
The consumer received the offer because he or she satisfied the criteria for credit worthiness or insurability used to screen for the offer.
Credit or insurance may not be extended if, after the consumer responds, it is determined that the consumer does not meet the criteria used for screening or any applicable criteria bearing on credit worthiness or insurability, or the consumer does not furnish required collateral.
The consumer may prohibit the use of information in his or her file in connection with future prescreened offers of credit or insurance by contacting the notification system established by the CRA that provided the report. This statement must include the address and toll-free telephone number of the appropriate notification system.

VI. OBLIGATIONS OF RESELLERS Section 607(e) of the FCRA requires any person who obtains a consumer report for resale to take the following steps:

Disclose the identity of the end-user to the source CRA.
Identify to the source CRA each permissible purpose for which the report will be furnished to the end-user.
Establish and follow reasonable procedures to ensure that reports are resold only for permissible purposes, including procedures to obtain:

(1) the identity of all end users; (2) certifications from all users of each purpose for which reports will be used; and (3) certifications that reports will not be used for any purpose other than the purpose(s) specified to the reseller. Resale's must make reasonable efforts to verify this information before selling the report.

VII. LIABILITY FOR VIOLATIONS OF THE FCRA Failure to comply with the FCRA can result in state or federal enforcement actions, as well as private lawsuits. Sections 616, 617, and 621. In addition, any person who knowingly and willfully obtains a consumer report under false pretenses may face criminal prosecution. Section 619

How to Be Fair Credit Reporting Act (FCRA) Compliant

quique@panoramapress.net (Quique Lopez) — Fri, 18 Sep 2009 15:44:00 +0000

Be Fair Credit Reporting Act (FCRA) Compliant
You need a permissible purpose. For the multifamily industry, that generally means that you can only obtain a consumer report in connection with a lease application or an attempt to collect a bad debt. Other permissible purposes also include the use of information for the extension of credit or the review or collection of an account, for employment purposes and for underwriting of insurance. FCRA Section 604.

Signed authorization from the applicant and keep it on file. Although the law states that you do not need a signature if you have a permissible purpose, a signed authorization form provides you with an additional level of security. The authorization can either be incorporated within the rental application or on a separate form. The authorization should inform the consumer of the information that will be reviewed in the leasing decision.
A letter sent to any applicant with whom you have taken an "Adverse Action". Adverse action does not just include denying a consumer's application for an apartment, but also includes any action that negatively affects the consumer. For example: requiring a guarantor if not required of other applicants; or not providing an applicant with promotional offers such as a free month of rent. The adverse action or declination letter must contain the following information: the name and address of the consumer reporting agency that issued the report; a statement that the consumer reporting agency did not make the decision to take adverse action; notice of the consumer's rights to obtain a free copy of the report within 60 days of the adverse action and the consumer's rights to dispute the accuracy and completeness of the information with the consumer reporting agency. FCRA Section 603(k). Landlord2Landlord generates an "adverse action" or “declination letter” by selecting the letter option at the bottom of the application order screen. You may also use your own "adverse action" or consumer “declination letter”.

You are permitted to give an applicant a copy of their consumer report. The FCRA does not prevent you from providing a copy of the report to the consumer if asked. In many cases though, the consumer will not be able to understand the report because they are unfamiliar with the information. Therefore, we advise you to have the consumer contact the consumer-reporting agency for a copy and assistance.
You are allowed to discuss and show the applicant their consumer report. If the contents of the consumer report lead to an adverse action, your company has the option to discuss the contents of the consumer report with the applicant as it relates to the decision. You may discuss specific items or problems on the consumer report. If possible, the discussion should be limited to the information that led to the decision. FCRA Section 607(c).
You cannot consider data that is more than seven years old. Under the FCRA you are not allowed to consider credit and eviction record history that is reported by more than seven (7) years when evaluating an applicant. Consumer reporting agencies will not provide older information except in the case of conviction of crimes and certain bankruptcies that can be reported for up to ten (10) years. FCRA Section 605.
You cannot request a consumer report on yourself. Using your subscriber account number to access information on oneself is not a permissible purpose under the Fair Credit Reporting Act (FCRA). To do so would place you in violation of the FCRA, and you would be liable to the consumer reporting agency for actual damages sustained by the consumer reporting agency or a $2,500 fine, whichever is greater.
Consumer reports should be held in the strictest confidence. Security is very important. Access to the reports should be limited only to those employees who need to have access and have been properly trained. Additionally, consumer reports must be kept in an area that is secure or locked.
Passwords and access codes to consumer report software should be maintained regularly. Passwords and codes used to access consumer report software should not be posted on or near your computers and should be changed on a regular basis. Passwords of employees who leave the company and had access to consumer reports should be deactivated immediately.
Employees should be trained on the Fair Credit Reporting Act (FCRA). Employees who have access to consumer reports should be trained on the sensitive nature of consumer information and the civil and criminal liability for misuse of this information. These issues should be an integral part of your company's training process.

Employee Screening

quique@panoramapress.net (Quique Lopez) — Fri, 18 Sep 2009 15:24:00 +0000

"The purpose of pre-employment background screening is to identify a potential employees’ predisposition to violence or theft."

In the case of fraud or theft, the total costs incurred are not only from the actual theft but also in the immeasurable lost productivity and employee morale. Other costs associated include the many man-hours lost in investigating the loss. The costs of investigation become much more involved because most theft and fraud is not noticed until much later. Some companies must go as far as hiring additional personnel, outside auditors or security companies. Even after the theft has been investigated and the perpetrator has been identified, this predator may still bring wrongful termination litigation against employer. In today’s legal climate, the employer has the burden of proof to justify the termination.

With violence, it is common knowledge in the legal community that a history of violence is a precursor of future violence. It is rare that an adult with no history of violence wakes up one day to become violent, especially in the workplace. The prime reason for screening is to have the ability demonstrate to authorities that the company has shown due diligence to protect other employees and the public from potential predators.

With theft or fraud, criminal background checks are very powerful tools but when you add a credit check, the picture becomes clearer. A credit check reveals candidates whose financial position may motivate them to steal. Also, previous employer and resume verification can certainly shed some light on the character of a candidate. Falsifying a resume is a sure giveaway of a problematic hire.

Today’s business environment is volatile and very competitive. Realizing your profits come from not only selling your products and services but also from minimizing your risk of additional costs. Proper and thorough employee screening is essential to the health of a company; one bad hire can certainly damage profits.

Hiring the Wrong Candidate

The negative results of hiring an employee without proper screening are not evident until the employee commits an act against the company or a fellow employee. In the case or workplace violence, one act may result in costly litigation (legal fees and jury awards) when the injured employee sues the employer. This aggressor may even go as far as to bring litigation against the company for discrimination or wrongful termination.

9 Reasons to Screen your Employees

quique@panoramapress.net (Quique Lopez) — Thu, 17 Sep 2009 22:51:00 +0000

"Workplace violence is the leading concern of security managers in America's largest corporations” - Security Magazine

Employment Screening
The frequency of employee theft and violence is increasing every year. The impact on business and the country in general is incalcuable.

9 reasons to screen your employees:

30% of all businesses close as a result of employee theft
$40 billion/year is lost to businesses because of workplace theft
$450,000/year is the average cost to mid size and big business for embezzlement
$36 billion/year is the cost to businesses from workplace violence
60% of workers experienced violent incidents in their workplace- Workplace Violence Survey / Society for Human Resource Management
750%-The increases in workplace violence since 1998
Homicide is the leading cause of job-related death for women. Homicide is the second leading cause of job-related death for all workers
25%/year-Workers reported that they have been threatened/attacked in their work place
$8,000-to replace a salaried employee ,$12,000-to replace a mid-level employee, $44,000-to replace a senior executive

Landlord2Landlord offers employers a quick and convenient way to screen job applicants. Direct access for credit, criminal and court house records delivered to your computer screen in seconds or simply fax us your request. Turn around is normally within three (3) hours. Contact a Landlord2Landlord represenative for additional details.

Review our Criminal Area Coverage, Court House Area Coverage, and FCRA Compliance Page.

Resources:

Workplace Violence. OSHA Fact Sheet, (2002), 340 KB PDF, 2 pages. Provides basic information about vulnerable occupations, employer/employee roles in prevention and protection, and recommendations for response to violent incidents.
Maintaining a Safe Workplace: Preventing and Responding to Disruptive, Threatening, or Violent Behavior. University of California - Davis (UC Davis). Presents information designed to highlight stresses and risks in the work environment, to enhance workplace safety, and to reduce and prevent disruption and violence.
Preventing Workplace Violence. Occupational Safety and Health State Plan Association (OSHSPA), (1999). Highlights how state programs help to ensure safe and healthful workplaces.
Keeping Your Workplace Safe. OSHA Brochure for Small Business Owners. Also available as a 551 KB PDF, 6 pages.

The Rental Market is Surging

quique@panoramapress.net (Quique Lopez) — Thu, 17 Sep 2009 22:39:00 +0000

Rents are accelerating in many markets across the USA. Vacancy rates are down from last year, and average rent is projected to rise 5.3% in 2008, up from a 3.1% increase in 2007.

Source: National Association of Realtors.

San Francisco: the median rent rose 14.6%, to $1,810 a month in the first quarter this year compared with a year earlier.

Seattle: The median rent in rose 10.3%, to $1,211, in the same period.

Washington, D.C.: the median rent rose nearly 5%, to $1,687.

Source: Investment Instruments

The median asking rate for rentals has jumped 14%, from $591 a month during the fourth quarter of 2003 to $673 a month in 2007.

The national vacancy rate for rental housing was 9.6% in the fourth quarter of 2007, down from 10.2% in the fourth quarter of 2003.

Source: US Census Bureau

2007: the number of renters in professionally managed apartments leapt by the largest amount since 2000, . That increase was as large as the increase for the previous five years combined. From 2004 through 2006, 1.2 million households became renters

Source: National Multi Housing Council

Foreclosures cost lenders an estimated $50,000, on average, in processing fees, liquidation-sale price cuts and other costs

Source: Center for Responsible Lending

Foreclosure filings -- default notices, auction sale notices and bank repossessions -- were reported on 223,651 U.S. properties during February, a 4% drop from the previous month but still a nearly 60% increase from February 2007. One in every 557 U.S. households received a foreclosure filing during the month.

Source: RealtyTrac

Seattle: rents rose 2.1% in the first quarter of 2008 over the previous quarter and nearly 9% since the first quarter of 2007. Vacancies in some neighborhoods are at 3%.
The average annual rent increase for all units was $84 a month

Source: Apartment Insights Washington

18% of foreclosures started in the third quarter of 2007 involved non-owner-occupied homes

Source: Mortgage Bankers Association

Who's Not Buying: What Your Average Renter Looks Like.

quique@panoramapress.net (Quique Lopez) — Thu, 17 Sep 2009 22:24:00 +0000

As the real estate market slows, it's more important than ever to target the right type of housing prospect. The following statistics will help you get a better idea of who's likely to be shopping for a house to rent, and not buying one in your neighborhood.

According to The National Low Income Housing Coalition's Out of Reach 2003: America's Housing Wage Climbs, to afford the fair-market price of the average U.S. two-bedroom rental unit, renters working full-time need to earn at least $15.28 per hour. That's almost three times the current federal minimum wage.

Below are some more facts about the 14.8 million renters in the US.

Realtors: What interesting trends are YOU seeing in the rental market in your hometown?

One-third of all apartments are rented by someone under the age of 30.
Singles represent nearly half of all apartment households.
Single women who live alone account for over half of this group and 26 percent of all apartment households, making them the single largest household type in apartment housing.
Nearly one-quarter of all apartments are occupied by families with more than two members.
Unrelated roommates account for another 14 percent of all occupied apartments.
30 percent of all apartment residents have incomes above the national median.
Apartment households represent the largest share of all households in the Northeast and West and in central cities, although their share is increasing in suburbs and even outsideof metropolitan areas.
Apartment residents are found disproportionately in the largest metropolitan areas. The New York metro area ranks first by number of apartments, accounting for 10 percent Of the U.S. total; adding the next two metropolitan markets, Los Angeles and Chicago, brings the total to 20 percent [2.6%: Multifamily Owner-Occupants 3.9%: Mobile Homes 7.3%: Renters in 2 to 4 unit buildings 12.2%: Single Family Renters 14.8%: Apartment Renters 60.3%: Single Family Owner/Occupants]
Annual growth of apartment dwellers: [1995-2000: +.09% 2000-2005: +1.1% 2005-2010: +1.2%(est.)]

As always, information in this article is not intended to be used, and should not be used, as legal, tax or accounting advice. Investors should seek advice from an independent financial advisor about their specific situation.

About Landlord2LandlordLandlord2Landlord (http://www.landlord2landlord.com/) is a residential tenant screening company that partners with property management companies and homeowner associations to help communities reduce neighborhood crime, and to protect homeowners from renters with criminal backgrounds or a history of evictions and poor credit.

Our website is easy to use, available 24 hours per day, and delivers instant, inexpensive results that comply with FCRA and Fair Housing Act requirements. See our Success Stories at http://www.landlord2landlord.com/SuccessStories2.aspx.

We also have a free monthly e-newsletter that contains information to help homeowners maintain and lease their residential properties more effectively. To receive the e-newsletter, please visit http://www.landlord2landlord.com/ezinesignup.aspx.

Scam in Tallahassee

quique@panoramapress.net (Quique Lopez) — Tue, 15 Sep 2009 17:45:00 +0000

Landlord2Landlord member, Anita S. from Tallahassee FL., writes:

"I was reading your article on Scams. Someone recently tried to
scam me. First a lady e-mailed me looking for a place to live as she was
going to attend FSU. After 2 e-mails a man, pretending to be her father
started sending e-mails saying his travel agent was sending me the money for
his daughters apartment and they sent too much money and wanted me to take
out 2 months rent and send him the difference back for his daughters travel
arrangements to Tallahassee. After two months of back and forth e-mails due
to problems in sending the Money Orders, I finally received the Money
Orders; 4 different WalMart Money Orders for $850.00 each. You can only get
Money Orders up to $500.00 each unless you go to the United States Postal
Service. The printed account number was in a greenish/black color as well
as the R, which is before the registration number on the left side. The
normally pink circle in the lower middle of a Money Order (which disappears
when you scratch it and then reappears is a legal authentic proof) was
Yellow. I notified the local police and gave them all the e-mails, the
envelope and Money Orders."

The Overpaid Rent Scam

quique@panoramapress.net (Quique Lopez) — Tue, 15 Sep 2009 17:38:00 +0000

Sometimes trying to rent a home, or vacation cabin, can attract con artists. In these schemes, the scammer contacts the person who listed the property for rent and expresses interest. Often, the scammer will send a check for the full rental amount, plus security deposit. The scammer then has second thoughts but "allows" the property owner to keep the security deposit, asking only for the difference to be sent back. The first check is a phony, but the scammer counts on the victim not learning that until after sending a "refund."

Landlord2Landlord member, Richard R. from Charlotte, NC writes: "I think some one is trying to scam me. I got a call from a woman in the UK. She wanted one of my available listing. She sent a $7,000 check to hold the unit with the understanding I would refund some of the funds for her travel to Charlotte. I called the bank which is in Florida. The check was for a closed account."We are getting reports like this from members accross the country. If member, Richard, had notcalled the bank, the woman would have taken his "refund" and cashed the check never to be seen again.

A common variation of this scam is that instead of calling the landlord for funds to travel, the scammerwould have shown up unexpectedly on the landlord's steps wanting to sign a lease. Upon signing thelease, the scammer would have then asked for a "refund" for expenses and cashed the check beforethe landlord finds out the initial check was not good Thanks to member Richard R. for the alert.

If the person sends money without seeing the property or negotiating other parts of the deal, be cautious. As a precaution, don't deposit the check. As always, if the rent offer seems too quick and easy to be true, it probably is.

If any landlords are scammed or hear about other scams, please let us know. This is precisely why Landlord2Landlord was created. We must look out for each other. Predators look at the rental communityas easy pickings.

How to Avoid Scams on Craigslist

quique@panoramapress.net (Quique Lopez) — Tue, 15 Sep 2009 17:22:00 +0000

from wikiHow - The How to Manual That You Can Edit

Craigslist is known worldwide on their classifieds for just about anything - from pets to furniture. With a few simple clicks and an email address, anyone can post wanted and 'for sale' items. However, everyone needs to be aware and distinguish valid and scam posts in Craigslist.

Steps

Search and browse within your own city or state limits. This will give you and the seller the opportunity to meet in person.

Try all attempts to exchange in person instead of mailing money. Unlike E-Bay, Craigslist is not responsible of transaction mishaps. This means, if you send money to someone, you can't report it to Craigslist if you don't receive the item that you were going for. Any reference to Craigslist that says "buyer protection" or "certified seller" is bogus.

Insist on cash. Fake checks and money orders are common, and banks will hold you - not the seller - responsible. Never wire money to anyone under any circumstances. Most payments made by wire transfer are fraudulent.

Prioritize posts with pictures than text only posts. If you are interested with a non-image post or would like more details, contact the poster but do not make any offers until you are fully satisfied. If they don't get back to you, look for something else.

Have some knowledge of what the item's average price is. This is more common for renting an apartment or buying a car over Craigslist. If you're not sure, browse through newspaper classifieds, other Craigslist posts, use the Kelley Blue Book for vehicles, or ask friends for a reasonable price range for that specific item.

Tips

A serious seller will leave some kind of content information, for example, a phone number, name, or email address. If they request that you reply to their Craigslist's reference email, don't bother. It means that they're too lazy, don't care as much, or not serious about selling the item.

Don't take the first interesting item as priority; jot it down and browse around.

If you don't find anything in your taste, wait until the next day or use another source.

If it's too good to be true, then it probably is.

Information such as credit card numbers, bank account numbers, social security numbers and other similar numbers should not be given out unless the individual is positive who will be receiving the information and that it is being transmitted over a secure server. This is important because this information can be used for identity theft or other fraudulent purposes.

Warnings

When renting an apartment or house, be aware that it is illegal for a landlord to enforce anything above the first month's rent for the security deposit. So if an apartment is going for $1,500 and the first month's rent is higher than that - it's a scam.

Related wikiHows

How to Post Ads to Craigslist
How to Avoid Getting Scammed on eBay
How to Spot eBay Automobile and Computer Scams

Sources and Citations

Wired Magazine - Original source of this article. Shared with permission.
*Craigslist Scams and Frauds

Article provided by wikiHow, a collaborative writing project to build the world's largest, highest quality how-to manual. Please edit this article and find author credits at the original wikiHow article on How to Avoid Scams on Craigslist. All content on wikiHow can be shared under a Creative Commons license.

Inflated-Sale-And-Crash Schemes

quique@panoramapress.net (Quique Lopez) — Tue, 15 Sep 2009 17:05:00 +0000

Here's how inflated inflated-sale-and-crash schemes work in more detail.

Let's say the true value of a home is $600,000. Under this scheme, an appraiser will fraudulently declare the value of the home to be more than this price. In this example, let's assume that the appraiser inflates the value of the home by an extra $100,000 to $700,000.

Without knowledge that any fraud is taking place, a lender will agree to a $700,000 loan based on the false appraisal. The seller of the home will then agree to sell the home at the higher price and give back $100,000 in cash to the buyer at the close of escrow.

When the lender pays the money to the seller, he or she will keep the $600,000 and give the extra $100,000 to the buyer, who will split this money with the shady appraiser and anyone else involved in the scheme.

In a couple of months, the buyer will stop making mortgage payments until the bank declares fault and begins to foreclose. While the buyer may ruin his or her credit, he or she profits in this scheme with much money in his or her pocket.

A Real estate appraiser and mortgage fraud investigator said that a buyer involved in these schemes will typically buy three to six properties at once with the goal of running with the extra money from the inflated home appraisals.

An FBI agent in the story said that reported cases of mortgage fraud doubled from approximately 17,127 to 35,617 cases from 2004 to 2006. The story detailed other data citing that federally insured financial institutions reported 37,614 Suspicious Activity Reports of mortgage fraud nationwide in 2006. It added that 36.6 percent of those filings were filed in California. (In related news, the state of Ohio recently sued 10 real estate companies for allegedly forcing appraisers to inflate home values).

Improperly inflating home appraisals have also been claimed to cause the prices of other homes in the area to boost. Specifically, legitimate appraisers will use these inflated appraisals (which they don't know have been compromised) as comparable baselines for other properties in respective areas.

As this article depicts, inflated-sale-and-crash schemes can not only cause massive headaches for financial lending institutions but also prospective buyers who are looking to purchase a home at a reasonable price but are ultimately affected by properties that are being unknowingly inflated by honest appraisers.

The Fake Drama

quique@panoramapress.net (Quique Lopez) — Tue, 15 Sep 2009 16:42:00 +0000

Scammers and their scams come and go much like the seasons. Many times we see a particular scam reach the peak of popularity and drop off suddenly. We may think that a scam is gone until months or even years later the scam returns. The following scam was reported to us in August of 2004 and has now shown its ugly face again:

There's a new scam in town, and its quite simple and extremely harmful to the recipient. What typically happens is a resident (who is probably being evicted or is behind in their rent) gets outside and starts a very loud argument with the landlord. The resident is also quite lewd and vulgar hoping the landlord will hit them (battery). This attracts attention from the neighbors. Then as the landlord leaves the property the resident places themselves just barely behind the landlord's car, and then the screaming really begins... "She's trying to run over my baby" "Did you see that, she just tried to hit me with her car” Now if they are really persuasive, and usually they are, the resident being evicted will go see the neighbors and re-enforce what the neighbors witnessed. This incident is now classified as a felony... "Aggravated assault""This happened to me, and this resident was able to convince two neighbors, who made good witnesses, to make a statement to the detective. I was then treated like a violent criminal; three police cars came to my home. Luckily, I had gone to the store. The next day, on the advice of my attorney, I turned myself in to the police. Still I was in jail for over 14 hours. I still have to go to another hearing and then the court trial. Can I do anything about the three thousand dollars worth of damage to the home? Only in Civil Court, which will be uncollectable. Folks these people knew the system better than I did, and I am still paying dearly!"

10 Tips to Secure the Safety of Residents

quique@panoramapress.net (Quique Lopez) — Tue, 15 Sep 2009 16:26:00 +0000

By QuiQue Lopez

Whether you are a single unit landlord or a multiunit operator, the safety of your residents should be a primary concern. The safety of your residents and the perception of safety are major factors in a resident’s decision to sign another lease. Property managers suffer high turnover and lose substantial profits by not attending to safety concerns.

The perception of safety is not only a main ingredient in a resident retention program; it is also a critical factor for bringing in new residents. Along with price, location, amenities and appearance, the perception of safety weighs heavily in a prospect’s decision. Families with children and female residents are especially sensitive to these factors.

The first step in implementing a safety plan is to screen residents and employees thoroughly by not only checking their credit but also doing a criminal background check. Property managers need to be especially vigilant to not allow sex offenders, thieves, drug dealers and criminals with violent histories into their properties. It is wise to demonstrate that management takes due diligence in screening both residents and employees. The news is littered with instances where residents and properties suffered as a result of hostile actions by unscreened residents and employees. Property management and landowners leave themselves open to lawsuits by allowing dangerous criminals into their property. Imagine the horror and implications if a sex offender violated another resident because the property manager did not screen properly.

The following tips will demonstrate to residents and prospects that management is serious about resident safety. These are tips that should serve as the basis for a general safety plan that should be written down and distributed to staff and residents. If implemented correctly, these tips will become a guide for future modifications and additions.

Awareness of surroundings continues to be the best protection for resident and property. Residents should be encouraged to meet and know their neighbors. Property managers should always be promoting community through events or community website activity. It is recommended that they use the website to document a community watch program.
The staff should be always display an ID card and door-to-door solicitors should be banned. Residents and staff should always be on the look out for suspicious strangers and unusual activity. This includes unknown packages and unattended vehicles.
Parking areas, entrances, offices, hallways, clubhouses, stairways, laundry rooms and other common areas must be well lit and locked. (Never allow entrances to be propped open) Burned out light bulbs should be changed immediately and angled mirrors installed.
Always change the locks when new residents move in and install 1 1/2in+ deadbolts. Install wide-angle peepholes with a cover to prevent outside to inside viewing. These doors must remain locked. Doors to the outside should be metal or solid 1-3/4"hardwood and fit their frames tightly, with no more than 1/8 inch space between the door and frame. It is recommended to place crime prevention sticker on doors and windows.
Install alarm systems.
Sliding glass doors and windows must be secured with commercial locks and anti-lift devices as well as a wooden dowel to jam the door. Ground level windows must be protected with bars that can be opened from the inside.
Trees and bushes must be trimmed at the ground level while obstacles and debris, which might impede a clear view, must be removed
Residents must be discouraged from putting spare keys under the doormat, in the mailbox or anywhere thieves may look.
Residents must be encouraged to put timers on lights, radios and TVs when not at home to give the appearance of someone living there.
Never put full names on mailboxes or directories.

By following these tips and being extra vigilant at all times, property managers can add one more details to the mix that makes their property a desirable place to live and a place people can call “home”. Residents will stay longer, prospects will want to move there and profits will increase.

Resident Retention Advice: 10 Tips to Keep your Residents Longer

quique@panoramapress.net (Quique Lopez) — Tue, 15 Sep 2009 16:20:00 +0000

10 Tips to Keep your Residents Longer

Reducing resident turnover for your property is a combination of different factors that begin with the basic rules of good customer service. Landlords must cultivate, within themselves and their staff, a set of behaviors carried out during communications with residents that demonstrate their appreciation. Landlords must consistently exceed their residents’ expectations day in and day out. Residents need to notice that the staff is committed to: A- addressing their wants and needs and B-showing concern for them as valued customers. Below are a few methods that can assist in reducing resident turnover. A successful plan employs many different nuances that are as obvious as a neon sign and as subtle as a smile.

Thank you for moving in…welcome wagon- Human nature values the experience of the first impression. When a person experiences a pleasant move-in, chances are that this initial experience will weigh heavily in future interaction. Many landlords give chocolates, cookies, flowers or other small gifts of appreciation.

Holiday best wishes-Holidays are points in our calendar that people associate with appreciation of certain events. They are days of leisure time away from work devoted to rest or pleasure. People associate these days with a common good will and shared positive reception. Acknowledging and celebrating these days by property managers serve to reinforce the quality of their rental as being a home. This association creates the sense of community, which aids in creating a kinship among resident.

Parties- For larger communities, throwing parties are great way to inspire community with residents and foster the atmosphere for building solid staff-resident relationships. These events are effective because residents can forge new friendships from the social interaction. Parties can also be a great way to encourage new resident referrals. Usually, the best parties take good planning to ensure that they don’t conflict with other events and residents’ schedules. They can either be thrown onsite or at a restaurant or nightclub. Good parties include entertainment, prizes and food, all of which attract residents and staff. Residents should be formally invited with a written invitation followed by an email. Signs and mentions on the newsletter and website should be constant to remind and promote the party. Staff, vendors and residents should be encouraged to bring friends to increase attendance.

Arrange for discounts from businesses. Many landlords arrange for discounts and coupons for their residents from local merchants and businesses. These businesses also have a vested interest in keeping the resident in the community. They also want to create shopping habits and are eager in assisting landlords with their resident retention programs. These coupons can be printed out or delivered via the website.

Internet access: Many landlords are beginning to offer free Internet for their residents. This extra amenity increases communication and is used quite often. Many landlords can ask that the resident set their homepage to the property’s website.

Remember names: A simple, inexpensive and effective way to keep your residents is to simply remember their names. This lets a resident know that you value them. When you meet a new resident, say his or her name to yourself again. If you have forgotten it, talk to the person again and ask for the name. Write down the new name three times while picturing the person's face; do this as soon as possible after move in. Writing down new names is generally a very successful memorizing technique that doesn't require a lot of work. To help memory, check out a book about employing mnemonic strategies.

Monthly drawing for a gift: many landlords conduct a monthly drawing for a gift as another form of appreciation. Some gift ideas include flowers, fruit baskets, dinner for two or movie passes. Many use the website to convey the drawing information. This encourages website use and sense of community.

Free use of office fax machine: This is a simple amenity that facilitates the lives of residents. This convenience is inexpensive and is much appreciated.

Birthday present and card. Everybody always appreciates someone remembering his or her birthday. Nothing cements a relationship like paying attention to the little personal details like a birthday.

Thrift or Garage sales-this is also an event for larger communities. This event is also used to forge friendships and promote goodwill among residents. This kind of event helps people get rid of some of their clutter but is great for socializing.

If a landlord is experiencing a high turnover and is willing to develop a resident retention plan, patience must be the first quality to cultivate. While change does not happen quickly, attention to the details of the needs and wants of residents has the potential to increase retention. Landlords must focus on providing comfortable, affordable, and residential communities where the personal growth of residents are encouraged and supported. Following simple rules of good customer service and promoting good will are the first steps to a winning formula.

Resident Retention Supported

quique@panoramapress.net (Quique Lopez) — Tue, 15 Sep 2009 16:17:00 +0000

The Costs of Resident Turnover

Each year, 60 to 80 percent of the nation s rental apartments receive new residents each year. Each time a rental unit is turned over, many costs seen and unseen are incurred. Costs go up further when the unexpected occurs: multiple units vacate at the same time. This leaves the leasing and maintenance staff overstretched and stressed trying to re-lease the units for the next occupants. Time and money is spent contacting, contracting and coordinating multiple vendors to backup your staff. Each time that a resident leaves, the unit must be refurbished for the next occupants. Industry wide, the cost of refurbishing an apartment averages $2000.

Refurbishing includes cleaning or changing carpets, painting and repairing walls, resealing bathrooms, deep cleaning appliances and cleaning curtains. The cost of refurbishing is also realized by the amount of time the staff spends on the unit, where they may be better employed keeping the community common grounds looking better and upgrading general conditions. Office staff time is also spent documenting and recovering damages. In addition to lost rent, added costs of turnover are also compounded by the efforts to bring a new tenant to the property. These cost include sales and marketing, time spent showing the property to prospects and screening each applicant. Industry experts estimate that it is nearly 10 times more expensive to try to turnover unit than to implement a resident retention program. Having a solid and consistent resident retention program for your property is indispensable to the profits of a rental business.

Quick Tips and Ideas

quique@panoramapress.net (Quique Lopez) — Tue, 15 Sep 2009 15:36:00 +0000

FYI

Did you know that half of all renters move between June and September?

____________________________________________________

Stats

According to industry statistics, the rent-to-own customer has the following demographic characteristics:

-Average Age - between 25 and 54 years old
-Ethnicity - 69% Caucasian, 22.5%African American, 6.5% Hispanic
-Household Income - between $15K and $75K
-Education - 60.3% high school grads, 24.5% some college
-Gender - 63.7% Female, 36.3% male

____________________________________________________

Stats

There are 77 million Baby Boomers in the U.S., 53 million between the ages of 40 and 50.

· There are 11,000 Baby Boomers turning 50 everyday and this trend will continue for the next 10 years.
· By 2012, 50 percent of the population will be over age 50.
· People over 50 years of age control 70 percent of the financial assets in the USA and 50 percent of all discretionary income.

Your opportunity, the baby boom market, is presently a $30 billion market. In the next three years, it is expect to grow to $70 billion. This is the fastest growing market in the U.S. and it's yours to take advantage of — and through us, you have the products and opportunity they are looking for.
____________________________________________________

Headline tips to get your Ad Noticed

- Headlines text size should be 2 or 3 times the size of the body text.
You have 1.5 seconds to catch readers' attention.
- Use Caps on keywords putting the main benefit in the headline
____________________________________________________

Will renting out your home lower the selling Price?

The mere fact that your home has been rented should not automatically lead to a lower sales price. The key is to get the right renter who will treat the home properly. You will still have some wear and tear on your home that will need to be addressed before you list the property. Property Manager Robert Griswold
____________________________________________________

Sex toys are the most common items left behind in properties by departing tenants-Survey by Deposit Protection Service
____________________________________________________

The following are tips to help avoid landlord identity fraud:

- Make sure that none of your mail goes to your rental properties. A good way to do this is to use the mail forwarding cards from your Post Office on a regular basis.
- If you have lived previously in the address, take extra precaution in submitting mail-forwarding cards to the Post Office.
- Never forget to do a proper and thorough screening of you tenants.
- Never share mailboxes.
- Monitor your credit report to see if anyone has fraudulently applied for credit in your name.
________________________________________________

Question

Landlord2Landlord member, Carl J. Nashville, TN., "After having gone so many years without a late fee, I would like to add one to my new application. I tried working with my tenants but I always ended up paying in the end. I don’t feel that I should have to suffer trying to collect my rent on time. What is a reasonable late fee to add to my rental agreement?

Property Manager policies vary greatly from the duration of the lease to the value of the property. We asked Ken Lemal of Little River Properties in Atlanta," We have generally added a 10% late fee to be applied after a 5 day grace period. Another option which is successful is to offer 10% rebate to those who pay their rent on the first of second of the month. You would need to add 10% to the monthly rent in order for this to work for you. For instance, if your rent is $1000 make the new rent $1100 with a $100 on time payment discount."
____________________________________________________

Marketing:

Brent D. writes in," Just a quick tip to pass along to landlords. They may post their vacancies for free on www.rentboard.com "

Is rent a consumer debt?

quique@panoramapress.net (Quique Lopez) — Tue, 25 Aug 2009 22:57:00 +0000

by Annette West, CCIM, MBA, CPA

Two acts designed to protect consumers are usually not considered relevant by landlords or property managers: (1) The Fair Debt Collection Practices Act (or FDCPA) and (2) The Fair Credit Reporting Act (FCRA). Until recently, the relationship between tenants and landlords was not viewed as a consumer debt relationship. However a recent case may suggest that anyone who helps landlords collect past due rents can be subject to the FDCPA, including property managers and attorneys.

The goal of the Fair Debt Collection Practices Act (or FDCPA) is to stop unfair, unethical and illegal bill collection tactics by debt collectors. Personal, family, and household debts are covered under the FDCPA. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts.

The act defines a debt collector is any person who regularly collects debts owed to others. This includes attorneys who collect debts on a regular basis. But does it include property managers or landlords trying to collect past due rent?

The answer seems clear: if you are the property owner, you need to follow landlord tenant law but not specifically meet the requirements of the FDCPA. If you are not the property owner and contact tenants about past due rent, it is recommended that communications with tenants meet the requirements of the FDCPA.

Within five days after first contacting the debtor, the collector must send a written notice stating the amount of money owed; the name of the creditor to whom the money is owed; and what action to take if the debtor believes they do not owe the money you may want to talk to your attorney first.

A second act, the Fair Credit Reporting Act (FCRA) regulates the providers and users of credit reports. The National Multi-Housing Council recently requested an opinion from the Federal Trade Commission regarding the use of credit reports when screening tenants.

The FTC reported back that landlords have obligations under the FCRA when they take adverse actions based on credit reports or other types of consumer reports. (A consumer report contains information about an individual's personal and credit characteristics, character, general reputation, and lifestyle). The FCRA covers a report if a consumer reporting agency, i.e. a business that assembles such reports for other businesses, prepares the report.

Most property managers and landlords rely on these credit reports as part of the tenant screening process. 1996 amendments to the FCRA added a broad "catch-all" to cover all actions or determinations "adverse to the interests of the consumer" made in connection with an application made by, or a transaction initiated by, the consumer, i.e. a tenant denied housing due to their credit report.

The catch-all provision clearly covers the landlord-tenant situation. Thus, landlords who use consumer reports must now provide applicants Section 615(a) adverse action notices when they refuse to rent or lease a dwelling, or when they require an increased security deposit as a precondition to the rental, based on a consumer report. (See the sidebar for information on these notices).

Says John Darden, attorney at law with the Darden Law Firm in Las Cruces: "While FCRA does not apply when a landlord's employee individually verifies credit information and adverse action is taken against a tenant applicant, if the landlord uses in any minor way a report from a tenant screening or credit reporting agency and takes any adverse action, a notice under FCRA must be provided. That adverse action may be as innocuous as requiring a larger deposit for FCRA to apply. FCRA gives tenants the right to access to access to federal court and an award of damages and attorney's fees against the landlord.

In some instances FCRA permits punitive damages against landlords. When in doubt, send the notice for each adverse action which depends in part upon a report to a landlord from any individual other than the landlord's own employee."

Annette West, CCIM, MBA, CPA, is a Las Cruces Commercial REALTOR® and can be reached at AWest@AnnetteWest.com, http://www.annettewest.com/ or at 505-644-1634. She is a contributing writer for Landlord2Landlord.

As always, information in this article is not intended to be used, and should not be used, as legal, tax or accounting advice. Investors should seek advice from an independent financial advisor about their specific situation.

My Renter Owes Me Money. Now What?

quique@panoramapress.net (Quique Lopez) — Tue, 25 Aug 2009 22:45:00 +0000

by Annette West, CCIM, MBA, CPA

Editor's Note: Most landlords and property managers can tell you stories of renters who disappeared under the cover of darkness, and still owe them money. But many rental managers struggle with what to do to recoup unpaid rent after the resident is long gone. Here are some tips to improve your rental collections - and how to report unpaid rent as a consumer debt.

Two acts designed to protect consumers are usually not considered relevant by landlords or property managers: The Fair Debt Collection Practices Act; The Fair Credit Reporting Act. Until recently, the relationship between tenants and landlords was not viewed as a consumer debt relationship. However a recent case may suggest that anyone who helps landlords collect past due rents can be subject to the FDCPA, including property managers and attorneys.

The goal of the FDCPA is to stop unfair, unethical and illegal bill collection tactics by debt collectors. Personal, family and household debts are covered under the FDCPA. This includes money owed for the purchase of an automobile, for medical care or for charge accounts.

The act defines a debt collector as any person who regularly collects debts owed to others. This includes attorneys who collect debts on a regular basis. But does it include property managers or landlords trying to collect past due rent?

The answer seems clear: if you are the property owner, you need to follow landlord tenant law but not specifically meet the requirements of the FDCPA. If you are not the property owner and contact tenants about past due rent, it is recommended that communications with tenants meet the requirements of the FDCPA.

Within five days after first contacting the debtor, the collector must send a written notice stating the amount of money owed; the name of the creditor to whom the money is owed; and what action to take if the debtor believes they do not owe the money you may want to talk to your attorney first.

A second act, the Fair Credit Reporting Act, regulates the providers and users of credit reports.

The National Multi-Housing Council recently requested an opinion from the Federal Trade Commission regarding the use of credit reports when screening tenants. The FTC reported back that landlords have obligations under the FCRA when they take adverse actions based on credit reports or other types of consumer reports. (A consumer report contains information about an individual's personal and credit characteristics, character, general reputation, and lifestyle).

The FCRA covers a report if a consumer reporting agency, i.e. a business that assembles such reports for other businesses, prepares the report.

Most property managers and landlords rely on these credit reports as part of the tenant screening process. Amendments in 1996 to the FCRA added a broad catch-all to cover all actions or determinations "adverse to the interests of the consumer," made in connection with an application made by, or a transaction initiated by, the consumer, i.e. a tenant denied housing due to their credit report.

The catch-all provision clearly covers the landlord-tenant situation. Thus, landlords who use consumer reports must now provide applicants Section 615(a) adverse action notices when they refuse to rent or lease a dwelling, or when they require an increased security deposit as a precondition to the rental, based on a consumer report.

John Darden, attorney at law with the Darden Law Firm in Las Cruces, NM, said: "While FCRA does not apply when a landlord's employee individually verifies credit information and adverse action is taken against a tenant applicant, if the landlord uses in any minor way a report from a tenant screening or credit reporting agency and takes any adverse action, a notice under FCRA must be provided.

"That adverse action may be as innocuous as requiring a larger deposit for FCRA to apply," he said. "FCRA gives tenants the right to access federal court and an award of damages and attorney's fees against the landlord. In some instances FCRA permits punitive damages against landlords. When in doubt, send the notice for each adverse action which depends in part upon a report to a landlord from any individual other than the landlord's own employee."

Additional Resources

Landlord2Landlord.com offers bad debt reporting services - if a renter leaves your property and still owes you money, you can report their debt through our website to all three credit bureaus - Experian, Equifax and Transunion. This means the renter's debt to you will appear on their individual credit report until the debt is settled with you. See http://www.landlord2landlord.com/bureaudebtreporting.aspx for more details.

We also have a contributory database that allows landlords and property managers to create Tenant Report Cards on renters, and to update those report cards at the end of the renter's lease. Renters in our system that have a history of evictions or not paying rent will be flagged when you run a criminal or credit report on a new applicant. For more information, please visit http://www.landlord2landlord.com/tenantreportcards.aspx.

About the Author

Annette West, CCIM, MBA, CPA, is a Las Cruces Commercial REALTOR® and can be reached at AWest@AnnetteWest.com, http://www.annettewest.com/ or at 505-644-1634. She is a contributing writer for Landlord2Landlord.

As always, information in this article is not intended to be used, and should not be used, as legal, tax or accounting advice. Investors should seek advice from an independent financial advisor about their specific situation.

****************************************************

About Landlord2Landlord

Landlord2Landlord is a residential and commercial tenant screening company that partners with property management companies and homeowner associations to help communities reduce neighborhood crime, and to protect home and business owners from renters with criminal backgrounds or a history of evictions and poor credit. We've offered credit reports, criminal records and bad debt reporting services since 1997.

Our website is easy to use, available 24 hours per day, and delivers instant, inexpensive results that comply with FCRA and Fair Housing Act requirements. See our Success Stories at http://www.landlord2landlord.com/SuccessStories2.aspx.

What is the FDCPA?

quique@panoramapress.net (Quique Lopez) — Tue, 25 Aug 2009 20:54:00 +0000

THE FAIR DEBT COLLECTION PRACTICES ACT

As amended by Public Law 104-208, 110 Stat. 3009 (Sept. 30, 1996)

------------------------------------------

To amend the Consumer Credit Protection Act to prohibit abusive practices by debt
collectors.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That the Consumer
Credit Protection Act (15 U.S.C. 1601 et seq.) is amended by adding at the end
thereof the following new title:

TITLE
VIII - DEBT COLLECTION PRACTICES [Fair Debt
Collection Practices Act]

Sec.

801. Short Title

802.
Congressional findings and declaration of purpose

803.
Definitions

804.
Acquisition of location information

805.
Communication in connection with debt collection

806.
Harassment or abuse

807.
False or misleading representations

808.
Unfair practice

809.
Validation of debts

810.
Multiple debts

811.
Legal actions by debt collectors

812.
Furnishing certain deceptive forms

813.
Civil liability

814.
Administrative enforcement

815.
Reports to Congress by the Commission

816.
Relation to State laws

817. Exemption for State regulation

818.
Effective date

. Short Title [15
USC 1601 note]

This title may be cited as the "Fair Debt Collection Practices Act."

. Congressional findings and declarations of purpose [15 USC 1692]

(a)
There is abundant evidence of the use of abusive, deceptive, and unfair debt
collection practices by many debt collectors. Abusive debt collection practices
contribute to the number of personal bankruptcies, to marital instability, to
the loss of jobs, and to invasions of individual privacy.

(b)
Existing laws and procedures for redressing these injuries are inadequate to
protect consumers.

(c)
Means other than misrepresentation or other abusive debt collection practices
are available for the effective collection of debts.

(d)
Abusive debt collection practices are carried on to a substantial extent in
interstate commerce and through means and instrumentalities of such commerce.
Even where abusive debt collection practices are purely intrastate in
character, they nevertheless directly affect interstate commerce.

(e)
It is the purpose of this title to eliminate abusive debt collection practices
by debt collectors, to insure that those debt collectors who refrain from using
abusive debt collection practices are not competitively disadvantaged, and to
promote consistent State action to protect consumers against debt collection
abuses.

. Definitions [15 USC 1692a]

As used in this title --

(1)
The term "Commission" means the Federal Trade Commission.

(2)
The term "communication" means the conveying of information regarding
a debt directly or indirectly to any person through any medium.

(3)
The term "consumer" means any natural person obligated or allegedly
obligated to pay any debt.

(4)
The term "creditor" means any person who offers or extends credit
creating a debt or to whom a debt is owed, but such term does not include any
person to the extent that he receives an assignment or transfer of a debt in
default solely for the purpose of facilitating collection of such debt for
another.

(5)
The term "debt" means any obligation or alleged obligation of a
consumer to pay money arising out of a transaction in which the money,
property, insurance or services which are the subject of the transaction are
primarily for personal, family, or household purposes, whether or not such
obligation has been reduced to judgment.

(6)
The term "debt collector" means any person who uses any
instrumentality of interstate commerce or the mails in any business the
principal purpose of which is the collection of any debts, or who regularly
collects or attempts to collect, directly or indirectly, debts owed or due or
asserted to be owed or due another. Notwithstanding the exclusion provided by
clause (F) of the last sentence of this paragraph, the term includes any
creditor who, in the process of collecting his own debts, uses any name other
than his own which would indicate that a third person is collecting or
attempting to collect such debts. For the purpose of section 808(6), such term
also includes any person who uses any instrumentality of interstate commerce or
the mails in any business the principal purpose of which is the enforcement of
security interests. The term does not include --

(A)
any officer or employee of a creditor while, in the
name of the creditor, collecting debts for such creditor;

(B)
any person while acting as a debt collector for another person, both of whom
are related by common ownership or affiliated by corporate control, if the
person acting as a debt collector does so only for persons to whom it is so related
or affiliated and if the principal business of such person is not the
collection of debts;

(C)
any officer or employee of the United States
or any State to the extent that collecting or attempting to collect any debt is
in the performance of his official duties;

(D)
any person while serving or attempting to serve legal
process on any other person in connection with the judicial enforcement of any
debt;

(E)
any nonprofit organization which, at the request of consumers, performs bona
fide consumer credit counseling and assists consumers in the liquidation of
their debts by receiving payments from such consumers and distributing such
amounts to creditors; and

(F)
any person collecting or attempting to collect any debt owed or due or asserted
to be owed or due another to the extent such activity (i)
is incidental to a bona fide fiduciary obligation or a bona fide escrow
arrangement; (ii) concerns a debt which was originated by such person; (iii)
concerns a debt which was not in default at the time it was obtained by such
person; or (iv) concerns a debt obtained by such person as a secured party in a
commercial credit transaction involving the creditor.

(7)
The term "location information" means a consumer's place of abode and
his telephone number at such place, or his place of employment.

(8)
The term "State" means any State, territory, or possession of the
United States, the District of Columbia, the Commonwealth of Puerto Rico, or
any political subdivision of any of the foregoing.

. Acquisition of location information [15 USC 1692b]

Any debt collector communicating with any person other than the consumer for the purpose of acquiring location information about the consumer shall --

(1)
identify himself, state that he is confirming or correcting location
information concerning the consumer, and, only if expressly requested, identify
his employer;

(2)
not state that such consumer owes any debt;

(3)
not communicate with any such person more than once unless requested to do so by such person or unless the debt collector reasonably believes that the
earlier response of such person is erroneous or incomplete and that such person
now has correct or complete location information;

(4)
not communicate by post card;

(5)
not use any language or symbol on any envelope or in the contents of any
communication effected by the mails or telegram that indicates that the debt
collector is in the debt collection business or that the communication relates
to the collection of a debt; and

(6)
after the debt collector knows the consumer is
represented by an attorney with regard to the subject debt and has knowledge
of, or can readily ascertain, such attorney's name and address, not communicate
with any person other than that attorney, unless the attorney fails to respond
within a reasonable period of time to the communication from the debt
collector.

. Communication in connection with debt collection [15 USC 1692c]

(a)
COMMUNICATION WITH THE CONSUMER GENERALLY. Without the prior consent of the consumer given directly to the debt collector or the express permission of
a court of competent jurisdiction, a debt collector may not communicate with a
consumer in connection with the collection of any debt --

(1)
at any unusual time or place or a time or place known
or which should be known to be inconvenient to the consumer. In the absence of
knowledge of circumstances to the contrary, a debt collector shall assume that
the convenient time for communicating with a consumer is after 8 o'clock antimeridian and before 9 o'clock postmeridian, local time
at the consumer's location;

(2)
if the debt collector knows the consumer is represented by an attorney with
respect to such debt and has knowledge of, or can readily ascertain, such attorney's name and address, unless the attorney fails to respond within a reasonable period of time to a communication from the debt collector or unless the attorney consents to direct communication with the consumer; or

(3)
at the consumer's place of employment if the debt
collector knows or has reason to know that the consumer's employer prohibits
the consumer from receiving such communication.

(b)
COMMUNICATION WITH THIRD PARTIES. Except as provided in section 804,
without the prior consent of the consumer given directly to the debt collector,
or the express permission of a court of competent jurisdiction, or as
reasonably necessary to effectuate a postjudgment
judicial remedy, a debt collector may not communicate, in connection with the
collection of any debt, with any person other than a consumer, his attorney, a
consumer reporting agency if otherwise permitted by law, the creditor, the
attorney of the creditor, or the attorney of the debt collector.

(c)
CEASING COMMUNICATION. If a consumer notifies a debt collector in writing
that the consumer refuses to pay a debt or that the consumer wishes the debt
collector to cease further communication with the consumer, the debt collector
shall not communicate further with the consumer with respect to such debt,
except --

(1)
to advise the consumer that the debt collector's
further efforts are being terminated;

(2)
to notify the consumer that the debt collector or
creditor may invoke specified remedies which are ordinarily invoked by such
debt collector or creditor; or

(3)
where applicable, to notify the consumer that the debt
collector or creditor intends to invoke a specified remedy.

If such notice from the consumer is made by mail, notification shall be complete
upon receipt.

(d)
For the purpose of this section, the term "consumer" includes the
consumer's spouse, parent (if the consumer is a minor), guardian, executor, or
administrator.

. Harassment or abuse [15 USC 1692d]

A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a
debt. Without limiting the general application of the foregoing, the following
conduct is a violation of this section:

(1)
The use or threat of use of violence or other criminal means to harm the
physical person, reputation, or property of any person.

(2)
The use of obscene or profane language or language the natural consequence of
which is to abuse the hearer or reader.

(3)
The publication of a list of consumers who allegedly refuse to pay debts,
except to a consumer reporting agency or to persons meeting the requirements of section 603(f) or 604(3)¹ of this Act.

(4)
The advertisement for sale of any debt to coerce payment of the debt.

(5)
Causing a telephone to ring or engaging any person in telephone conversation
repeatedly or continuously with intent to annoy, abuse, or harass any person at
the called number.

(6)
Except as provided in section 804, the placement of telephone calls without
meaningful disclosure of the caller's identity.

. False or misleading representations [15 USC 1692e]

A debt collector may not use any false, deceptive, or misleading representation
or means in connection with the collection of any debt. Without limiting the
general application of the foregoing, the following conduct is a violation of
this section:

(1)
The false representation or implication that the debt collector is vouched for,
bonded by, or affiliated with the United States or any State,
including the use of any badge, uniform, or facsimile thereof.

(2)
The false representation of --

(A)
the character, amount, or legal status of any debt; or

(B)
any services rendered or compensation which may be
lawfully received by any debt collector for the collection of a debt.

(3)
The false representation or implication that any individual is an attorney or
that any communication is from an attorney.

(4)
The representation or implication that nonpayment of any debt will result in
the arrest or imprisonment of any person or the seizure, garnishment,
attachment, or sale of any property or wages of any person unless such action
is lawful and the debt collector or creditor intends to take such action.

(5)
The threat to take any action that cannot legally be taken or that is not
intended to be taken.

(6)
The false representation or implication that a sale, referral, or other
transfer of any interest in a debt shall cause the consumer to --

(A)
lose any claim or defense to payment of the debt; or

(B)
become subject to any practice prohibited by this
title.

(7)
The false representation or implication that the consumer committed any crime
or other conduct in order to disgrace the consumer.

(8)
Communicating or threatening to communicate to any person credit information
which is known or which should be known to be false, including the failure to
communicate that a disputed debt is disputed.

(9)
The use or distribution of any written communication which simulates or is
falsely represented to be a document authorized, issued, or approved by any
court, official, or agency of the United States or any State, or which creates
a false impression as to its source, authorization, or approval.

(10)
The use of any false representation or deceptive means to collect or attempt to
collect any debt or to obtain information concerning a consumer.

(11)
The failure to disclose in the initial written communication with the consumer
and, in addition, if the initial communication with the consumer is oral, in
that initial oral communication, that the debt collector is attempting to
collect a debt and that any information obtained will be used for that purpose,
and the failure to disclose in subsequent communications that the communication is from a debt collector, except that this paragraph shall not apply to a
formal pleading made in connection with a legal action.

(12)
The false representation or implication that accounts have been turned over to
innocent purchasers for value.

(13)
The false representation or implication that documents are legal process.

(14)
The use of any business, company, or organization name other than the true name
of the debt collector's business, company, or organization.

(15)
The false representation or implication that documents are not legal process
forms or do not require action by the consumer.

(16)
The false representation or implication that a debt collector operates or is
employed by a consumer reporting agency as defined by section 603(f) of this
Act.

. Unfair practices [15 USC 1692f]

A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing,
the following conduct is a violation of this section:

(1)
The collection of any amount (including any interest, fee, charge, or expense
incidental to the principal obligation) unless such amount is expressly
authorized by the agreement creating the debt or permitted by law.

(2)
The acceptance by a debt collector from any person of a check or other payment
instrument postdated by more than five days unless such person is notified in
writing of the debt collector's intent to deposit such check or instrument not
more than ten nor less than three business days prior to such deposit.

(3)
The solicitation by a debt collector of any postdated check or other postdated
payment instrument for the purpose of threatening or instituting criminal
prosecution.

(4)
Depositing or threatening to deposit any postdated check or other postdated
payment instrument prior to the date on such check or instrument.

(5)
Causing charges to be made to any person for communications by concealment of the true propose of the communication. Such charges include, but are not
limited to, collect telephone calls and telegram fees.

(6)
Taking or threatening to take any nonjudicial action to effect dispossession or disablement of property if --

(A)
there is no present right to possession of the
property claimed as collateral through an enforceable security interest;

(B)
there is no present intention to take possession of
the property; or

(7)
Communicating with a consumer regarding a debt by post card.

(8)
Using any language or symbol, other than the debt collector's address, on any
envelope when communicating with a consumer by use of the mails or by telegram,
except that a debt collector may use his business name if such name does not
indicate that he is in the debt collection business.

. Validation of debts [15 USC 1692g]

(a)
Within five days after the initial communication with a consumer in connection
with the collection of any debt, a debt collector shall, unless the following
information is contained in the initial communication or the consumer has paid
the debt, send the consumer a written notice containing --

(1)
the amount of the debt;

(2)
the name of the creditor to whom the debt is owed;

(3)
a statement that unless the consumer, within thirty days after receipt of the
notice, disputes the validity of the debt, or any portion thereof, the debt
will be assumed to be valid by the debt collector;

(4)
a statement that if the consumer notifies the debt collector in writing within
the thirty-day period that the debt, or any portion thereof, is disputed, the
debt collector will obtain verification of the debt or a copy of a judgment
against the consumer and a copy of such verification or judgment will be mailed
to the consumer by the debt collector; and

(5)
a statement that, upon the consumer's written request within the thirty-day
period, the debt collector will provide the consumer with the name and address
of the original creditor, if different from the current creditor.

(b)
If the consumer notifies the debt collector in writing within the thirty-day
period described in subsection (a) that the debt, or any portion thereof, is
disputed, or that the consumer requests the name and address of the original
creditor, the debt collector shall cease collection of the debt, or any
disputed portion thereof, until the debt collector obtains verification of the
debt or any copy of a judgment, or the name and address of the original
creditor, and a copy of such verification or judgment, or name and address of
the original creditor, is mailed to the consumer by the debt collector.

(c)
The failure of a consumer to dispute the validity of a debt under this section
may not be construed by any court as an admission of liability by the consumer.

. Multiple debts [15 USC 1692h]

If any consumer owes multiple debts and makes any single payment to any debt
collector with respect to such debts, such debt collector may not apply such
payment to any debt which is disputed by the consumer and, where applicable,
shall apply such payment in accordance with the consumer's directions.

. Legal actions by debt collectors [15 USC 1692i]

(a)
Any debt collector who brings any legal action on a debt against any consumer
shall --

(1)
in the case of an action to enforce an interest in real property securing the
consumer's obligation, bring such action only in a judicial district or similar
legal entity in which such real property is located; or

(2)
in the case of an action not described in paragraph (1), bring such action only in the judicial district or similar legal entity --

(A)
in which such consumer signed the contract sued upon;
or

(B)
in which such consumer resides at the commencement of
the action.

(b)
Nothing in this title shall be construed to authorize the bringing of legal
actions by debt collectors.

. Furnishing certain deceptive forms [15 USC 1692j]

(a)
It is unlawful to design, compile, and furnish any form knowing that such form
would be used to create the false belief in a consumer that a person other than
the creditor of such consumer is participating in the collection of or in an
attempt to collect a debt such consumer allegedly owes such creditor, when in
fact such person is not so participating.

(b)
Any person who violates this section shall be liable to the same extent and in
the same manner as a debt collector is liable under section 813 for failure to
comply with a provision of this title.

. Civil liability [15 USC 1692k]

(a)
Except as otherwise provided by this section, any debt collector who fails to
comply with any provision of this title with respect to any person is liable to
such person in an amount equal to the sum of --

(1)
any actual damage sustained by such person as a result
of such failure;

(2) (A) in the case of any action by an individual, such additional damages as the court may allow, but not exceeding $1,000; or

(B)
in the case of a class action, (i) such amount for
each named plaintiff as could be recovered under subparagraph (A), and (ii)
such amount as the court may allow for all other class members, without regard
to a minimum individual recovery, not to exceed the lesser of $500,000 or 1 per
centum of the net worth of the debt collector; and

(3)
in the case of any successful action to enforce the foregoing liability, the
costs of the action, together with a reasonable attorney's fee as determined by
the court. On a finding by the court that an action under this section was
brought in bad faith and for the purpose of harassment, the court may award to
the defendant attorney's fees reasonable in relation to the work expended and
costs.

(b)
In determining the amount of liability in any action under subsection (a), the
court shall consider, among other relevant factors --

(1)
in any individual action under subsection (a)(2)(A),
the frequency and persistence of noncompliance by the debt collector, the
nature of such noncompliance, and the extent to which such noncompliance was
intentional; or

(2)
in any class action under subsection (a)(2)(B), the frequency and persistence
of noncompliance by the debt collector, the nature of such noncompliance, the
resources of the debt collector, the number of persons adversely affected, and
the extent to which the debt collector's noncompliance was intentional.

(c)
A debt collector may not be held liable in any action brought under this title
if the debt collector shows by a preponderance of evidence that the violation
was not intentional and resulted from a bona fide error notwithstanding the maintenance
of procedures reasonably adapted to avoid any such error.

(d)
An action to enforce any liability created by this title may be brought in any
appropriate United States
district court without regard to the amount in controversy, or in any other court
of competent jurisdiction, within one year from the date on which the violation
occurs.

(e)
No provision of this section imposing any liability shall apply to any act done
or omitted in good faith in conformity with any advisory opinion of the
Commission, notwithstanding that after such act or omission has occurred, such
opinion is amended, rescinded, or determined by judicial or other authority to
be invalid for any reason.

. Administrative enforcement [15 USC 1692l]

(a) Compliance with this title shall be enforced by the Commission, except to the extend that enforcement of the requirements imposed under this title is specifically committed to another agency under subsection (b). For purpose of the exercise by the Commission of its functions and powers under the Federal Trade Commission Act, a violation of this title shall be deemed an unfair or deceptive act or practice in violation of that Act. All of the functions and powers of the Commission under the Federal Trade Commission Act are available to the Commission to enforce compliance by any person with this title, irrespective of whether that person is engaged in commerce or meets any other jurisdictional tests in the Federal Trade Commission Act, including the power to enforce the provisions of this title in the same manner as if the violation had been a violation of a Federal Trade Commission trade regulation rule.

(b)
Compliance with any requirements imposed under this title shall be enforced
under --

(1)
section 8 of the Federal Deposit Insurance Act, in the
case of --

(A)
national banks, by the Comptroller of the Currency;

(B)
member banks of the Federal Reserve System (other than
national banks), by the Federal Reserve Board; and

(C)
banks the deposits or accounts of which are insured by
the Federal Deposit Insurance Corporation (other than members of the Federal
Reserve System), by the Board of Directors of the Federal Deposit Insurance
Corporation;

(2)
section 5(d) of the Home Owners Loan Act of 1933, section 407 of the National
Housing Act, and sections 6(i) and 17 of the Federal
Home Loan Bank Act, by the Federal Home Loan Bank Board (acting directing or
through the Federal Savings and Loan Insurance Corporation), in the case of any
institution subject to any of those provisions;

(3)
the Federal Credit Union Act, by the Administrator of
the National Credit Union Administration with respect to any Federal credit
union;

(4)
subtitle IV of Title 49, by the Interstate Commerce
Commission with respect to any common carrier subject to such subtitle;

(5)
the Federal Aviation Act of 1958, by the Secretary of Transportation with
respect to any air carrier or any foreign air carrier subject to that Act; and

(6)
the Packers and Stockyards Act, 1921 (except as
provided in section 406 of that Act), by the Secretary of Agriculture with
respect to any activities subject to that Act.

(c)
For the purpose of the exercise by any agency referred to in subsection (b) of
its powers under any Act referred to in that subsection, a violation of any
requirement imposed under this title shall be deemed to be a violation of a
requirement imposed under that Act. In addition to its powers under any
provision of law specifically referred to in subsection (b), each of the
agencies referred to in that subsection may exercise, for the purpose of
enforcing compliance with any requirement imposed under this title any other
authority conferred on it by law, except as provided in subsection (d).

(d)
Neither the Commission nor any other agency referred to in subsection (b) may
promulgate trade regulation rules or other regulations with respect to the
collection of debts by debt collectors as defined in this title.

. Reports to Congress by the Commission [15 USC 1692m]

(a)
Not later than one year after the effective date of this title and at one-year
intervals thereafter, the Commission shall make reports to the Congress
concerning the administration of its functions under this title, including such
recommendations as the Commission deems necessary or appropriate. In addition,
each report of the Commission shall include its assessment of the extent to
which compliance with this title is being achieved and a summary of the
enforcement actions taken by the Commission under section 814 of this title.

(b)
In the exercise of its functions under this title, the Commission may obtain
upon request the views of any other Federal agency which exercises enforcement
functions under section 814 of this title.

. Relation to State laws [15 USC 1692n]

This title does not annul, alter, or affect, or exempt any person subject to the
provisions of this title from complying with the laws of any State with respect
to debt collection practices, except to the extent that those laws are
inconsistent with any provision of this title, and then only to the extent of
the inconsistency. For purposes of this section, a State law is not
inconsistent with this title if the protection such law affords any consumer is
greater than the protection provided by this title.

. Exemption for State regulation [15 USC 1692o]

The Commission shall by regulation exempt from the requirements of this title any class of debt collection practices within any State if the Commission
determines that under the law of that State that class of debt collection
practices is subject to requirements substantially similar to those imposed by
this title, and that there is adequate provision for enforcement.

. Effective date [15 USC 1692 note]

This title takes effect upon the expiration of six months after the date of its
enactment, but section 809 shall apply only with respect to debts for which the
initial attempt to collect occurs after such effective date.

Approved
September 20, 1977

ENDNOTES

So in original; however, should read "604(a)(3)."

LEGISLATIVE HISTORY:

Public
Law 95-109 [H.R. 5294]

HOUSE
REPORT No. 95-131 (Comm. on Banking, Finance, and Urban Affairs).

SENATE
REPORT No. 95-382 (Comm. on Banking, Housing, and Urban Affairs).

CONGRESSIONAL
RECORD, Vol. 123 (1977):

Apr.
4, considered and passed House.

Aug.
5, considered and passed Senate, amended.

Sept.
8, House agreed to Senate amendment.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 13, No. 39:

Sept. 20, Presidential statement.

AMENDMENTS:

SECTION
621, SUBSECTIONS (b)(3), (b)(4) and (b)(5) were
amended to transfer certain administrative enforcement responsibilities,
pursuant to Pub. L. 95-473, § 3(b), Oct. 17, 1978. 92 Stat. 166; Pub.
L. 95-630, Title V. § 501, November 10, 1978, 92 Stat. 3680; Pub. L. 98-443, § 9(h), Oct. 4, 1984,
98 Stat. 708.

SECTION
803, SUBSECTION (6), defining "debt collector," was amended to repeal
the attorney at law exemption at former Section (6)(F)
and to redesignate Section 803(6)(G) pursuant to Pub.
L. 99-361, July 9, 1986, 100 Stat. 768. For legislative history, see H.R. 237, HOUSE REPORT No. 99-405
(Comm. on Banking, Finance and Urban Affairs). CONGRESSIONAL RECORD: Vol. 131
(1985): Dec. 2, considered and passed House. Vol. 132 (1986): June 26,
considered and passed Senate.

SECTION
807, SUBSECTION (11), was amended to affect when debt collectors must state (a)
that they are attempting to collect a debt and (b) that information obtained
will be used for that purpose, pursuant to Pub. L. 104-208 § 2305,
110 Stat. 3009 (Sept. 30, 1996).