Testimony on Eviction Record Sealing
The following text is written testimony that I submitted to the housing committee during the housing bond bill hearing at the state house on January 18, 2024. The purpose was to foster a collaborative approach that is fair to tenants, while protecting rental property owners at the same time.
As the Compliance Director of TenantTracks, with an office in Feeding Hills MA, I am writing to address the potential of eviction record sealing on tenant screening in the Governor's Housing Bill H4138.
We understand the importance of protecting individual rights and fostering an inclusive housing environment. However, I would like to shed light on the critical benefits that tenant screening provides to both landlords and tenants, and how it contributes to responsible housing practices.
I have been in this industry since 1982 when my father opened InfoCenter in Feeding Hills which was sold to CoreLogic Saferent in 2005 upon his death. I have been working with TenantTracks since 2010. For decades, we have promoted accountability for tenants while teaching landlords and property managers best practices for resident selection.
Risk Mitigation
Tenant screening is a crucial tool that allows landlords to assess the risk associated with potential tenants. By evaluating applicants based on their credit history, rental history, and criminal background, landlords can make informed decisions that contribute to the safety and well-being of the entire community. By sealing certain records this may expose landlords to higher risks of leasing their properties to individuals with problematic backgrounds, which can compromise the safety of the neighborhood and the financial viability of the property.
Property Protection
Landlords invest significant resources in their properties, and ensuring that tenants have a history of responsible behavior is essential for protecting these investments. Tenant screening helps identify individuals who may have a history of damaging rental properties or defaulting on lease agreements, thereby minimizing the risk of property damage and ensuring a more stable housing market. When tenancies go bad and it ends up in housing court, the costs are passed on and rents go up. Preventing evictions keeps rents stable.
Fairness and Equality
While it's important to address concerns about discrimination in housing, adding more regulations and barriers to effective tenant screening may not be the most effective solution.
Instead, we should focus on promoting fair and transparent screening practice. By working collaboratively to establish guidelines that promote best practices with no bright line standards, we can ensure that the screening process is conducted equitably while still providing landlords with the information they need to make informed decisions. HUD for example promulgated regulations on the use of arrest and criminal records in the last few years for this very reason.
Encouraging Responsible Tenancy
Tenant screening is not just about identifying potential risks; it also plays a role in encouraging responsible tenancy. Individuals with strong credit histories and positive rental experiences are often rewarded with more favorable lease terms. This creates an incentive for tenants to maintain good financial habits and uphold their rental agreements, contributing to a more stable and responsible housing community.
Market Stability
Tenant screening contributes to the overall stability of the housing market by allowing landlords to make well-informed decisions. This, in turn, attracts responsible tenants and helps maintain a balanced and reliable rental market. Decreasing the effectiveness of tenant screening by sealing certain records may lead to increased uncertainty among landlords, potentially resulting in higher rental costs and decreased availability of rental properties.
In conclusion, while it is essential to address concerns of tenant screening, these changes may have unintended consequences on the stability and safety of our housing market. I propose a collaborative approach that focuses on refining and improving screening practices to ensure fairness and equality while still providing landlords with the necessary tools to make informed decisions.
Conversely, not having measurable metrics covered under the federal Fair Credit Reporting Act may lead to unintended consequences, and landlords using subjective rather than objective measurements for resident selection that the potential renter will be unaware and have no recourse unlike the dispute processes required in the FCRA.
I am open to further discussions on this matter and welcome the opportunity to work together to find a balanced solution that addresses the concerns raised by the legislature.
Thank you for your time and consideration.
by Paul Jenney
