US Housing Market Will Continue to Crash but Experts Advise Not to Buy – What This Means for Landlords

February 25th, 2010

Although the US housing market prices continue to decline during the last quarter of 2009, many real estate experts are still suggesting that now is not the right time to buy. The reason? Because housing prices will continue to fall in most places. Prices are still dangerously high compared to annual incomes and rental prices. According to Raphael Bostic of the US Department of Housing and Urban Development, “the homeownership rate in the United States used to be somewhere close to 70 percent. We’ve fallen off by several million households now.”

So where have all the home owners gone? The answer, according to Bostic is simple: “a lot have now gone into the rental market.”

US Housing Market Trends

If the global economic recession has taught us one thing, it’s that the real estate market can be a ruthless game. The financial institutes and the US public are waiting to take the plunge into home loans until the housing market settles and there is more than enough in the bank.

Although buyers are now warier about purchasing their own homes, this does not mean that home buying has stopped all together. Coast to coast buyers are still borrowing 6 times their income and only putting down 3% on their new homes. The banks suggest a safe mortgage should be a maximum of 3 times a buyer’s income with a 20% down payment. What this means is that people are still falling short and could be paying the consequences down the road.

Real estate agents have been promising “rock bottom” prices for several months now but the housing market is still not quite there. Furthermore, they suggest that now, when interest rates are low, is the best time to buy. However, this is not necessarily the case. Many people have done their research and discovered that buying when interest rates are low can actually hurt them down the road. After all, interest rates have nowhere to go but up and this will normally happen during the worst times.

Renters Market on the Rise

Until the housing market makes a drastic change, many people will stick to the renters’ market. Renting is a cheaper, less stressful and less constraining option which is something many people need in a still-shaky economy. The US unemployment rate in November 2009 tipped the scales at 9.4%. With more and more people losing their jobs every day, renting simply seems like the safer option. Furthermore, renting comes with only one payment, usually on a monthly basis, while buying a home comes with property tax, maintenance and upkeep expenses.

So what does this mean for landlords across America?

Essentially, it means that landlords are able to afford to be picky in their selection.

With so many people in the rental market, it can be hard to determine who is the right person for a vacancy. Landlords admit that choosing the wrong tenant is one of the biggest problems they face every day. Almost 75% of landlords face renter’s arrears in recent times. Furthermore, the Residential Landlords Association reports that 150,000 tenants will face legal action by the end of 2010 due to problems surrounding rental agreements. The biggest issues include outstanding rent, disturbing neighbors and problems surrounding the deposit check.

“Right now from every 10 applications, we turned down nine,” Yazgul Odekova, a property manager in Alexandria, Virginia admits. Furthermore, of those who are accepted, many turn out to be the wrong person for the place. Pelletaire suggests that “today you need multiple minimum wage jobs to be able to afford a two bedroom apartment.” Many people are simply unable to make the payments each month and create an unstable situation for both themselves and their landlords.

Choosing Wisely in a Flourishing Market

Being thorough during the interviewing process is one way to battle against bad tenants. Another option, as many landlords have discovered, is to perform a tenant background check with every potential applicant. Tenant background checks provide landlords with access to previous evictions, credit reports, social security verification and criminal histories. Although this information will not guarantee that the tenant will behave and pay every month, it does provide assurance that the person has not been evicted in the past, does not have poor credit, has a steady stream of income and does not have numerous sex offender convictions to his name.

Tenant background checks can help assess the tenant before it’s too late. A blooming renters’ market means landlords have more choices, both good and bad. It’s important to sift through the bad in order to profit in this industry. “It’s not just because people are dishonest. Sometimes people have big medical bills, sometimes people have bankruptcy, sometimes they suddenly become sick and don’t have health insurance,” a property manager in Alexandria states. All of these can drastically affect the chance that they will make rent each month.

Until the housing market reaches that promised ‘rock bottom’ and until the economy returns to a steadier reality, people are finding salvation in the renting market. For landlords from coast to coast, this means it’s more important than ever to do the research and choose the right tenant. Tenant background checks can make that happen.

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Employee Theft on the Rise for 2010 Sale Season – How Businesses are Fighting Back

February 25th, 2010

The end of 2009 is near but, unfortunately for retailers across America, this does not mean the end of employee-related criminal activity. In fact, experts, including Best Buy’s Director of Asset Protection, Tim Fisher, believe that “organized retail crime is a reality” and the worst is yet to come. With the start of 2010 sales just around the corner, this means that top retailers across the country need to protect their revenue and products from attacks both externally and internally.

Large retail outlets such as Target, Wal-Mart, Sam’s Club, Best Bay and Big Y Foods have all felt the crunch of employee theft in the past. Employee theft accounts for ten times the value of street crimes losses in the United States and retailers are often the hardest hit. In fact, the Department of Justice reports that nearly one third of all employees will commit some degree of employee theft during their working time. Furthermore, 75% of those who have stolen or committed a white collar crime will do so again. Of these drastic numbers, only one in 28 employees will be apprehended for employee theft, according to a study done by Jack L. Hayes International.

Large companies, retail and otherwise, take extreme precautions against shoplifting and burglary with locked display cases, bullet proof glass, alarm cords, concave mirrors, security videos and professional guards. But what are they doing to protect their business from theft that occurs from within these closed doors?

Indications of Petty Theft and White Collar Crimes

Minor employee theft includes a wide variety of activity, from stealing old fruit from the back of the store to ‘forgetting’ to scan an item through the grocery till. All of these petty crimes will add up for business owners. The US Chamber of Commerce reports that employee theft will cost businesses over $50 billion annually in losses. Furthermore, the Association of Certified Fraud Examiners reports that the average organization will lose nearly $10 per day, per employee due to employee theft. Often this loss will be passed on to the customers in increased prices and fees. In larger corporations white collar criminal behavior including embezzlement, bribery and insider trading can set companies back hundreds of thousands of dollars every time.

Dr. Richard Hollinger, a professor of criminology at the University of Florida, reports that employee theft acts like “a big faucet that drips day in and day out.” Large companies are often the easiest targets because there are simply too many employees and too many other important issues to deal with on a daily basis, especially during the busy sales season. Boxing Day Sales and January Sales mean more and more people will flock to the larger chain stores to stock up on discounted 2009 items. However, employee theft will continue throughout the year.

Protecting your Business

One of the main ways business owners are protecting their businesses from the inside is through video monitoring. Although video cameras will keep an eye on employees, they also run the risk of causing information overload. Grocery stores and large retail chains will monitor their employees at the checkout and in the back rooms; however, according to Malay Kundu, a security expert and entrepreneur, “less than 1 percent of video ever gets looked at by anyone.” There is simply not enough time to analyze video input day in and day out. Many companies are also investing in security software to catch insider criminals. But is it enough?

Your browser may not support display of this image. Your browser may not support display of this image. Your browser may not support display of this image. Your browser may not support display of this image. Of course, employee theft does not just hit the big retail outlets, even though during the busy shopping seasons they are often more at risk. Employee theft and white collar criminal activities, such as fraud, embezzlement and bribery can take place in all industries from small corner stores to large financial institutions. The banking industry is the hardest hit with $1 billion losses annually due to white collar criminal activity. However, the truth of the matter is, no company, no matter how big or small, is completely safe from employee theft.

The reason is simple – most business owners do not know every single little detail about their employees’ histories. During the hiring process, most business owners will conduct a quick interview discussing employment history, goals, education and reasons for wanting to work, followed by a reference check and then make a decision about hiring a potential employee. The entire process is quick but is it effective? When looking at the rate of white collar activities across the United States, it would appear the answer is ‘no.’

Solutions for 2010 – Employment Background Checks

Many large corporations and small companies are now focusing on a triple attack when it comes to the hiring process – the interview and the reference check, followed by an employment background check. An employment background check is a way for employers to access a person’s criminal record, credit report and social security identification to ensure that he or she is clean. Although conducting an employment background check and discovering that a potential employer is clean as a whistle will not guarantee that he will be the perfect fit for the position, it does add a level of security in knowing that he has not been charged with theft, embezzlement or other crimes that could jeopardize the future of a company.

The biggest problem with employee related crimes is that they usually come as such a shock to the company. No business owner wants to believe that his most trusted employee could be capable of theft. Employment background checks cannot offer 100% security that a company will be protected from employee related criminal behavior but it can drastically reduce this chance. And, with the bad after taste of the recession of 2009 still fresh in our mouths, can any business owner really take this risk for 2010?

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The Four Most Common Employee Problems and How to Solve these Issues

January 20th, 2010

There will always be problems in the workplace. From office politics to sexual harassment, from problems retaining staff to issues with in-house relationships, no office is perfect. We’ve listed the four most common employee-related problems, as cited by office professionals and managers, as well as the best employee background check tips to ensure these issues do not negatively impact your company.  

Under Qualified Staff  

One look at the ‘work experience’ and ‘education’ sections of a resume and you should be able to tell if an employee will be qualified for the position. However, this is actually not the case at all. Applicants will often beef up their resume in order to get the job and then fake their way through the interview. Unless you have specific tests in place to determine the skill levels of your applicants, there is a good possibility that your potential employee is not as qualified as his resume suggests. You then have to go through the hassle of training him in the basics that he should already know. This can be time consuming and frustrating for any company manager.  

One of the best ways to ensure that you are not caught by the false-resume trap is to perform a social security verification check. A social security verification check will list the detailed information of your applicant including his past jobs, according to his tax records. What this means is you can compare his ‘work experience’ to reality and determine if he is actually as qualified as he has documented.  

Personality Clashes in the Workplace 

There will always be personality clashes between people in the office. While these clashes are often played out humorously on television, they are not so funny in real life, especially when you are caught in the middle. These office politics often cause serious work production issues and you may find yourself mediating rather than actually getting anything done.  

The best way to deal with personality clashes in the workplace is by doing a thorough inspection of a potential employee during the interview process. Know the different personality
types that exist in the office and try to find someone who will fit into the mould. If you like to be in charge and prefer your workers to be passive rather than argumentative, look for someone who has a similar personality during the interview. Ask circumstantial questions to see how the applicants react to the situation. Although you will
never be able to eliminate all clashes in the office, performing a meticulous interview may help you decide who will fit best with your already-established staff.  

Employee Theft  

It might be hard to believe but employee theft occurs in 30% of all businesses and is one of the reasons that many businesses fail. The Department of Justice reports that nearly one third of all employees will commit some degree of employee theft during their working careers. Employee theft can include petty crimes such as stealing chocolate bars from the back room or rummaging through the lost and found bins. However, even these small crimes add up. Common employee theft related crimes include stealing money from a cash register, voiding receipts to pocket the money and stealing stock and office equipment. However, there are some employee-related crimes, such as accounting schemes, embezzlement and insider trading that could end up costing your company hundreds of thousands of dollars.  

So how can you stop employee theft before it happens? Three words: criminal background checks. A criminal background check will allow you to see if your potential employee has any previous convictions. Look for white collar criminal convictions, shoplifting and other theft convictions. If the employee background check comes out clean, then you can feel a lot better about hiring him. However, keep in mind that just because an employee has a clean criminal record check does not necessarily mean he is 100% trustworthy. Invest in internal surveillance measures to keep track of what’s really happening behind closed doors.  

Employee Flakiness  

Are your employees constantly calling in sick, citing every excuse in the book? If so, you are not alone. While not all employees will make use of the numerous sick days offered, many employees will take these days off to their full advantage. Furthermore, many others will take advantage of worker’s compensation and other personal injury claims. Some illnesses cannot be prevented or predicted; however, many employees will call in sick on a Monday after a long weekend of hard partying, or take Friday off simply because
they feel like it. These cases of employee flakiness will end up costing you more money and effort than its worth, especially if it means replacing the employee with someone else. You might find yourself spending more
time on the phone trying to find replacement staff than actually managing your business.  

The best way to determine the flakiness of your potential employee is to ask for a number of references, especially from past employers. If your applicant does not submit names
and numbers of recent employers, then a social security verification check can help out. All it takes is a simple phone call to find out how well the applicant performed at his past job. If the old employer admits that the employee took a lot of sick days and personal leave, then there is a good chance that he will do the same for you.  

Sometimes the best way to avoid potential office problems is to do your research. Checking references, performing a thorough interview, obtaining a social security verification check and using the services of employee background checks will all help you eliminate office problems, boost company morale and improve your business’ production.

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Five Factors to Consider when Choosing Your Next Employee

January 20th, 2010

Finding ambitious, experienced and educated employees these days is a lot easier said than done. Furthermore, just because an employee appears perfect on paper does not necessarily
mean he will be the perfect fit for the position. That is why it is important to tackle the task of hiring employees with a five-factor game plan that includes your own personal research as well as professional employee screening services.   

  1. The Resume

 

Reading through a resume and cover letter is the first step in the hiring process. Most employers will make sure the applicant has the proper education and work experience. An excellent resume will be eloquent, error-free and will paint an accurate professional image of the person it represents. Once you have gone through the resumes and categorized them into “yes” and “no” piles, it’s time to uncover the truth behind those words.

  1. A Social Security Verification Check

 

In addition to a resume, a social security verification check can provide you with the assurance that your employee has the experience you are looking for. A social security verification check will tell you the basis details of a potential employee, including name, address and previous jobs held according to his tax records. What this means is you can compare what is written on his resume to what is actually true. You may discover that those five years your potential employee said he worked as a bank manager were actually five years spent on the cash register at McDonalds. According to a recent study, 30% of applications contain false material. If your potential employee is lying about his education/experience in the industry,
then what else is he prepared to lie about? Employee screening services will provide you with this information before you make a big mistake and hire someone who is under qualified and dishonest. 

  1. The Interview

The interview process is often the most time consuming, most tedious, and most important factor in hiring the right employee. After all, this is the time where you actually meet your potential employee face to face and uncover the truth about his personality. Most employees will be somewhat nervous during the interview process but you should still be able to assess his character and his personality during the interview. Is he shy or outgoing? Is he rude or polite? Is he dressed appropriately? Is he prepared? Does he possess the people skills required for the position? All of these small factors can help you decide the big picture – who your next employee will be.  

  1. The References

 

During the interview process, it is important to ask for a list of references from your applicant. These references are often people he has worked with in the past, people who know him well and people who will give him a positive recommendation. It is a good idea to also contact the applicant’s previous workplace and speak to the managers, regardless of whether these names are included as references. The reason is because you will find out the truth about an applicant’s work ethic through an old boss or manager. You will also be able to uncover if the applicant left on poor terms and why. If the problem is related to something serious such as employee theft or sexual harassment, you might want to think twice about letting him
on the payroll.  

  1. The Criminal Background Check

 

The criminal background check is often the missing piece in your employee search puzzle.  A criminal background check will check your potential employee’s criminal record
to determine if he has had any convictions in the past. Most of the time a criminal record check simply provides the assurance that you are hiring the right employee. Although a background check is standard in certain jobs, such as government careers and teaching positions, all employers can benefit from this employee screening service.  

But what happens if you do find something amiss? What happens if your employee’s criminal background check reveals a misdemeanor or felony offense from the past? What you
decide to do with this information is completely up to you. Many employers will look at the facts surrounding the arrest and conviction. When did it occur? If the arrest occurred over fifteen years ago, then it could have been a one-time mistake. However, if there are numerous criminal convictions over the past five years, then this is something different. Furthermore, what was the crime committed? Theft, white collar crime, assault, murder, homicide, arson, criminal sexual conduct or any other felony-related crimes should act as a red flag, especially if the job entails working around money, important documentation or other people.  

There is one final factor you need to consider when choosing your next employee and that is your own intuition. You should always go with the person you feel confident with and who not only has what it takes on paper, but also has that extra something that matches your company. Never underestimate the power of your instincts. However, take the cautionary road by including the interview, the social security verification, the reference check and the criminal background check in your employee hiring process.

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Is an Employee Driving Report Necessary for my Business?

January 20th, 2010

A driving record is important for a number of reasons. For one, a driving record will document all the different violations, points loss, insurance details, vehicle details and accidents of the past – all of this information will impact your car insurance rate and thus, the better driving record you have, the better car insurance rate you will be offered. However, a driving record is not only an essential document to order as an individual, but it can also be a great way to determine if a person is suited for a job in your company. For business owners, no matter the type of business, an employee driving report will give you the insider knowledge into someone’s habits on the road. This is especially important in occupations where driving is part of the job description.  

If you employ any type of driver, then an employee driving record is something that should not be missed. This goes for those who are employed to drive schools buses, tour buses,
taxis, limousines, delivery trucks and so forth. However, there are several careers where driving may not be the main job criterion but where driving is most certainly necessary. Furthermore, if you are offering
a company vehicle to your employees, then you are not only putting other drivers at risk by not checking an employee’s driving record, but you are also putting your company’s name and reputation on the line
as well.  

Client- Based Companies and Employment Screening Driving Reports  

There are certain careers where client satisfaction is of utmost importance and where good people skills will drive your business forward. This is true in the real estate industry
and any other sales-related field. Very often this client interaction does not occur just in the comforts of the office. In the case of real estate, client interactions also take place on the road as a realtor navigates through the streets showing houses to potential buyers. If you discover through an employment driving report that your new realtor
is also a speed demon on the road, you might not feel comfortable letting him drive a company car filled with potential clients (and, racing down the freeway at 40 miles over the speed limit, these clients are most
likely not at ease either). Furthermore, it will be embarrassing not only for the driver, but also for you as the business owner, when your company car is pulled over on the side of the highway for speeding or
drunk driving. There is no catchy slogan that will help your company in this situation.  

If you own any type of client-based business where driving to and from work, or driving around throughout the day is part of the job description, then it may be a good idea to
check the driving records of your potential employees.   

Safety and Driving Reports 

Another industry where a driving report should be essential when choosing employees is in the construction and earth moving industry. Operating heavy machinery not only requires
a certain ticket and license, but should also involve an employer check into a potential employees’ driving backgrounds to make sure they have not made a lot of mistakes on the road. Careless highway driving
can often lead to careless heavy vehicle driving as well. And, when you are on a job site, safety always comes first. Any heavy machinery operators from pavers to dozer drivers, from heavy duty mechanics to
backhoe drivers, should not only have the experience and the qualifications needed to drive these machines, but also have a clean, or near clean, employee driving record. After all, in most instances, it’s your company
name that is on the machines and your men working in the field, so you want to protect both your reputation and your workers from any unsafe situation.

Careers with Children and Employee Driving Records

With a career that is, in any way, children-orientated, there are a number of employment record checks that should be included in the hiring process. Most government agencies
and schools require not only certification, but also a criminal background check and social security verification for anyone wanting to work around children. However, a driving report is also an important document to
check. This should be required for teachers, day care workers or nannies to name a few. Teachers often drive students to extra-curricular activities, such as basketball games, especially if they happen to be the coach.
Furthermore, many childcare workers will drive on field trips and many daycares offer a pick-up/drop-off service for busy moms. Nannies are often given access to a vehicle to drive the children to the library,
school and other places throughout the day. If your potential child care worker has three DWI offenses, then you might think twice about putting her behind the wheel of your daycare van. You need to put the
protection of the children first and this means hiring only the most experienced and safest people to work on your team.  

There are a number of careers where driving is the main criterion; however, there are even more occupations where driving may not be the most important aspect of the job description, but is necessary on a daily basis. Regardless of whether you own a trucking company or a child care business, it is important to look into potential employees’ driving records and other employment background services before handing out the job. It is not only your company’s reputation that is on the line – it is also the safety of clients, workers, children and other drivers on the road. A driving report can give you that extra protection both on and off the road to help you make the best decision about your next employee.

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