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TENANTCLEAR™ bY FORMATIC PROPERTY MANAGEMENT, INC.

GRADING AND REQUIREMENTS FOR APPLICATION APPROVAL

By applying to rent any property through Formatic Property Management, Inc. you agree that you have read all scoring and application requirements for TenantClear™ below, as well as the accompanying Screening Information and Other Criteria section. You further agree to all terms and conditions in these documents, as well as any outlined in the property advertisement.

TenantClear™ By Formatic Property Management, Inc.

RENTAL APPLICATION SCORE SHEET

This is how we will score your application. Please ask us if you have questions about our process.

Co-Tenants will have their category scores averaged and an automatic denial for any one tenant, such as an eviction in the last three years, will disqualify the entire applicant group.

All applicants, regardless of whether they have pets, no pets, service animals, or ESA's, must also complete a profile via formatic.petscreening.com. See "Screening Information and Other Criteria: Section 4: Pet Policies and Fees" below for further information.

Name of Applicant:____________________________________________________________

Property Address:_____________________________________________________________

RATING CATEGORY                                                       SCORING

Length Employed with Current Employer * Full time student of 12+ credits treated as employment 0

0-12 Months

1

12-24 Months

2

24-36 Months

3

36+ Months

Rent to Income Ratio (income combined for all tenants) Automatic Denial

34% or more

1

30-33%

2

25-29%

3

24% or lower

Credit (F.I.C.O.) Score (If applicant's credit check returns with no credit score, a default score of 500 will be used.) 0

<600

1

601-650

2

651-725

3

725+

Debt to Income Ratio (new rent + plus loan payments – combined for all tenants) 0

55% or more

1

55-51%

2

50%

3

45% or lower

Payment History (CC = Consumer Credit) Automatic Denial

Utility/Rent Debt

1

CC Delinquent

2

Bankrupt / New CC

3

Student Loan, Medical, Foreclosure

Criminal History (Convicted)

*1st degree felonies automatically denied

Automatic Denial

Felony Under 7 Years

1

Felony over 7 years

2

Traffic and other Citations

3

None

Average Length of Last 5 years of Residency

* Eviction in last three years, automatically denied

0

12 months of less

1

13-24 months

2

25-48 months

3

49+ months

Late Rent or Mortgage in last two years 0

3x

1

2x

2

1x

3

0x

Score 18+, No Pets Approved
Score 18+, Pet(s) Conditional approval subject to pet policy. See Pet Policies on Information Page.
Score 15 - 17 Denied, with the option for conditional approval based on new data or by paying a monthly TenantClear Contingency Fee. See TenantClear Contingency Fee on Information Page.
Less than 15 Application denied. Denied. Eviction in last three years, automatically denied
Notified Property Owner: _________________ Date:  _________________
Notified Property Manager:  _________________ Date:  _________________
Notified Applicant:  _________________ Date:  _________________
FRCA Letter Sent:  _________________ Date:  _________________

Screening Information and Other Criteria

Table of Contents

    1. Fair Housing Statement
    2. Harassment of Staff and Property Owner Communication
    3. TenantClear Contingency Fee
    4. Pet Policies, Fees
    5. Issuing Copy of Background Reports
    6. No Porting of Pre-Issued Credit or Other Reports to Formatic Property Management, Inc
    7. Formatic Property Management, Inc Reports Good for 30 Days on unlimited Formatic Property Management, Inc Properties
    8. Total Number of Occupants, Familial Status, Protected Cases, Unrelated Occupants
      1. Max Occupancy Limits
      2. Familial Status Protection
      3. Unrelated Adult Occupants
    9. Co-Tenants and Co-Signers
    10. Bankruptcy
    11. Income Verification
    12. SSN Required
      1. Student Visas Exception

 

 

  1. FAIR HOUSING STATEMENT
    1. Formatic Property Management, Inc. is committed to compliance with all federal, state, and local fair housing laws.  
    2. Formatic Property Management, Inc. will not discriminate against any person because of race, color, religion, national origin, sex, gender identity, familial status, disability, or any other specific classes protected by applicable laws.
    3. Formatic Property Management, Inc. will allow any reasonable accommodation or reasonable modification based upon a disability-related need. The person requesting any reasonable modification may be responsible for the related expenses.
  2. Harassment of Staff and Property Owner Communication
    1. Harassment of staff or any attempt to contact the property owner directly result in immediate and automatic denial
    2. Harassment of staff includes but is not limited to actions taken verbally, by text, email, in person, or any other method that are:
      1. Threats, whether physical, legal, or otherwise
      2. Repeated demands for status updates when a specific response timeframe has already been provided and has not passed
      3. Expressing in a hostile manner that Formatic Property Management, Inc. or the property owner will be making a mistake if you are not approved
      4. Making demands in an attempt to force Formatic to approve you
      5. Insulting staff
      6. Swearing directed towards staff personally
      7. Any other actions deemed harassment at the discretion of Formatic
    3. UNTIL THE LEASE IS SIGNED BY ALL PARTIES, IF YOU ENGAGE IN ANY OF THE ABOVE BEHAVIORS ANY PREVIOUS APPROVAL WILL BE REVOKED. All Communications may be monitored and/or recorded for quality assurance, and recordings (if available) will be consulted in making any determination to revoke a previous approval.
  3. TenantClear Contingency Fee
    1. As stated in the Application Criteria found before applying for a property managed by Formatic Property Management, Inc., Tenants who score below 18 points but more than 14 points on TenantClear have the opportunity to still rent the Property by paying a monthly TenantClear Contingency Fee (TCCF). 
      1. This fee accounts for the fact that tenants with TenantClear scores below 18 are more likely to create additional workload and risk due to causes such as vacating without notice, general damages, late payments, bounced payments, and other lease violations. Payment of the TCCF does not absolve tenant of any lease responsibilities.  
      2. The TCCF Tiers are as follows:

        TenantClear Score TenantClear Contingency Fee
        17 $15
        16 $25
        15 $45
      3. Future Reduction or Elimination of TenantClear Contingency Fee:
        1. The longer a tenant stays in the Property, the more months pass without paying late, and the more tenants improve other factors such as credit score and debt to income ratios, the higher a tenant's potential TenantClear score shall be. If tenant’s score improves, then tenant shall be eligible for a TCCF reduction or elimination based upon the new combined TenantClear score of all tenants.
        2. Landlord shall run a new background check of all tenants within 30 days of tenant’s request. Background checks will be at tenant’s expense. Tenant should attempt to determine their credit score before making the request. Landlord does not recommend using Credit Karma or similar services, as their scores are frequently different than what credit reporting agencies show. It is recommended tenant inquires about their current score directly from Equifax, TransUnion, or Experian
        3. All tenants must give approval in writing for this process.
        4. The TCCF will be adjusted as necessary based upon the new TenantClear score.
        5. If Tenant would like to change their lease immediately to the new fee, tenant shall pay a $100.00 Lease Amendment Administrative Fee for Landlord to process an amendment to your lease. Otherwise, the change will take effect at the next lease renewal period at no charge. Tenant must continue to pay the original TCCF until the effective date of the new lease or addendum.
  4. Pet Policies and Fees
    1. All applicants, regardless of whether they have pets, no pets, service animals, or ESA's, must complete a profile via formatic.petscreening.com. This process verifies you understand the rules, rights, and restrictions surrounding animals in and on the property.
      1. There is no charge, pet deposit, or administrative fee for applicants without animals or for those with animals verified through petscreening.com as being service or emotional support animals.
      2. The application for renting a home is not complete until the Pet Screening profile is complete, regardless of if you have a pet or not.
    2. Pet Administration Fee: A monthly Pet Administration Fee (PAF) will be assessed based on the “FIDO” score of pets screened on petscreening.com. The administrative fee covers the increased tangible and intangible costs to Landlord and Formatic in permitting a tenant to have a pet, including but not limited to increased scrutiny during regular inspections, additional paperwork, documentation review and updating for pet insurance and pet records, and efforts involved due to the increased likelihood of legal and neighbor complaints. The Pet Administration Fee (PAF) is NOT RENT OR PET RENT. PAF is not an insurance product, and tenant receives no guarantees or permissions, with the exception of being permitted to keep an authorized pet on the property. The PAF FIDO scale is as follows:
      1-Paw: $60/month/pet
      2-Paw: $50/month/pet
      3-Paw: $40/month/pet
      4-Paw: $30/month/pet
      5-Paw: $20/month/pet
    3. Refundable Pet Deposit may be required per pet
    4. Maximum Two Pets
      1. Fish in tanks less than 20 gallons, Permanently caged pets (small reptiles, small mammals that are not allowed to freely roam outside of their cage) are not counted in the limit.
  5. Copy of Background Reports
    1. Formatic Property Management, Inc is NOT a credit reporting agency. As such, Formatic Property Management, Inc DOES NOT issue applicants a copy of reports issuing credit reporting agencies may allow Formatic Property Management, Inc to access.
    2. If you are denied based on information obtained in your credit report, you will be provided:
      1. A written reason for denial within the legally required timeframe
      2. The name and contact information for the issuing credit reporting agency. You have the right to contact the issuing authority and to request to a copy of your report from them directly.
  6. No Porting of Pre-Issued Credit or Other Reports to Formatic: Formatic Property Management, Inc does not accept previously issues criminal and financial background reports due to instances of fraudulent documents. You must complete an application and undergo a full screening via Formatic’s processes.
  7. Formatic Property Management, Inc Reports Good for 30 Days on unlimited Formatic Property Management, Inc Properties: Your background check is good for any property leased by Formatic Property Management, Inc and can be used to qualify without additional fees for as many Formatic Property Management, Inc rental properties as you would like. Your report is accepted for up to 30 days from date run.
  8. Total Number of Occupants, Familial Status, Protected Cases, Unrelated Occupants
    1. Max Occupancy Limits: Fire and safety code in most municipalities limits total occupants to the equivalent of 2 per bedroom +1 additional in the house, in compliance with HUD directions. We adhere to these requirements. Example: A 3-bedroom house can house up to seven people. Age is not a factor in the calculation.
    2. Familial Status Protection
      1. No one may deny housing, limit access to housing, discourage home seekers, or create different rules, fees, or standards because the family has or is expecting children under the age of 18.
      2. This protection does not extend to individuals who are not related and wish to live together as roommates.
      3. This protection does not apply to federally approved 55-and-older housing communities
    3. Unrelated Adult Occupants:
      1. Formatic Property Management, Inc permits a maximum of 3 unrelated adult occupants per residence
      2. Examples:
        1. Approved:
          1. Single parent, 3 children, parent’s friend or significant other
          2. Three friends looking to rent together as co-tenants
          3. A couple, and someone from work
          4. Multi-generational household
        2. Not Approved
          1. Four unrelated friends looking to rent a large home together
          2. Two brothers and a sister, and the boyfriends/girlfriends of each of them
          3. A couple, plus another unrelated couple
          4. A couple, plus their two best friends
        3. Note on the term couple: Actual "couple" status is not a determining factor. As seen in the above examples, it makes no difference in approval.
      3. Exceptions:
        1. Authorized Student Housing
  9. Co-Tenants and Co-Signers
    1. Co-Tenants
      1. Anyone 18+ in age who applies with another person to occupy a home
      2. All co-tenants are considered fully and inseparable part of an application and lease and are individually fully responsible for accuracy and compliance with the application and lease
      3. All co-tenants who apply have their scores averaged out to determine if the household is qualified.
      4. Any occupant who may be added later, if known, should be screened with all immediate occupants. There is no guarantee a future potential occupant may be approved, including family members, if they are 18+ in age.
    2. Co-Signers
      1. A non-resident who agrees to be financially and legally responsible for the terms of the lease and all legal compliance, in addition to the actual occupants
      2. Formatic Property Management, Inc DOES NOT allow Co-Signers except for:
        1. Student housing where all occupants are registered students. Co-Signer must make 5x the rent in gross income and meet all other qualifications.
        2. Occupants on a Student Visa
  10. Bankruptcy: Bankruptcy must have been discharged no less than one year prior to application, with no new negative credit reports during the same period.
  11. Income Verification
    1. Acceptable Documentation of Income
      1. W2 Paystubs
        1. 2-months most recent copies
      2. 1099 / Self-Employed
        1. If on 1099 or Self-Employed for the previous two years
          1. Last two years of income tax statements
          2. Record of last two months of deposits to a personal bank account
        2. If on 1099 or Self-Employed for less than two years
          1. 6 months of bank statements showing income into a personal account. The account cannot be where business funds are deposited (no commingling of personal and business funds). The average will be considered your current monthly income.
          2. Any income tax statements issued during the time since on 1099 or self-employed
      3. K1
        1. Last two years of income tax statements
        2. Record of last two months of deposits to a personal bank account
      4. Official Extension of Job Offer
        1. Must be on official letterhead of employer
        2. The employer must be legally registered in the state where the property is located
        3. Approval dependent on verification of authenticity at the discretion of the screening individual
        4. Must have a start date, date offer extended, and base income
    2. Unacceptable Documentation of Income
      1. General Rule: If it’s not reported to the IRS, it is not accepted
      2. Handwritten and typed notes
      3. Non-verifiable letters of employment
      4. Self-generated reports
      5. Emails
      6. Cash receipts
      7. Bank statements
  12. SSN Required: You must have a Social Security Number to complete a full background check.
    1. We cannot rent to you without a full background check.
    2. We do not inquire about immigration status, and it is not a factor in approval.
    3. Student Visa Exception: You may, of your own will and volition, disclose you are a foreign resident and have a current student Visa that is good through the length of the lease, and you must provide:
      1. Affidavit of Support
      2. Sponsor or personal bank statement in U.S. dollars
      3. Photocopy of passport (photo and biological information)
      4. Photocopy of most recent U.S. visa
      5. Photocopy of I-94 (front and back, unless electronically issued)
      6. Photocopy of any U.S. port of entry stamp in passport
      7. Photocopy of all previous I-20 forms and/or Change of Status Approvals
      8. You will also need a Co-Signer who can complete Co-Signer requirements