The task of tenant screening, a critical element of being landlord, can often be a daunting one. This is especially true in today's digital age, where a multitude of tenant screening platforms are readily available in the market. The sheer volume of options can make it easy for landlords, agents and property managers to become overwhelmed, leading to a common tendency to simply rely on gut instinct when deciding which service to use. However, in order to ensure the reliability and effectiveness of the tenant screening process, it's crucial to move beyond this instinctual approach and adopt a more systematic and methodical method for identifying the most suitable tenant screening services.
When embarking on the journey to distinguish the high-quality services from the less reliable ones, it's important to consider a few key factors. Firstly, a cardinal question to ask is: does the service aid in preventing the selection of unqualified or problematic renters? This is, after all, the primary purpose of any tenant screening service. Secondly, it's imperative to check that the service complies with legal regulations such as the Fair Credit Reporting regulations and Fair Housing Laws, to avoid any potential legal repercussions. Thirdly, the presence of a robust and responsive customer support system is crucial to handle any queries or issues that arise during the screening process. Finally, it's important to assess whether the service efficiently manages renter questions and concerns, or whether these are left languishing and unaddressed.
1. One of the most significant red flags to look out for with tenant screening services is an over-reliance on tenant-provided information. This can lead to a complex array of challenges and issues.
Misremembered dates and addresses, changed contact information for previous employers and landlords, and a reluctance or inability to supply necessary information can all surface as potential problems. Furthermore, applications may be accompanied by incomplete or inadequate supporting documents. Such issues can greatly hinder the effectiveness and efficiency of the screening process, compromise the validity and reliability of applications, and even open up the potential for fraudulent activity.
2. Another major cause for concern is the issue of compliance with Fair Credit Reporting. The Fair Credit Reporting Act (FCRA) necessitates a fair, impartial, and secure evaluation of an applicant’s financial and personal information while also ensuring applicants have the right to dispute any negative information that may adversely impact their application. Unfortunately, some screening services may sometimes fail to meet these important requirements due to a lack of detailed financial screening, failure to provide legally required information, potential liability for non-compliance with FCRA, and the looming threat of potential lawsuits under state or federal law.
3. A critical component of the screening process is ensuring that all adults living in the property, including spouses, significant others, and adult children, are appropriately screened. Failure to do this can lead to unqualified tenants slipping through the cracks, which can subsequently affect rent payment and lead to non-compliance with Fair Housing regulations. In addition, this underscores the need for thorough and comprehensive background checks on multiple applicants, to ensure that all potential tenants meet the required standards.
4. The importance of checking eviction and employment records cannot be overstated in the tenant screening process. An eviction check can serve as a key indicator of potential risk, highlighting previous instances of problematic behavior. On the other hand, the employment history check can provide valuable insights into the applicant's job stability, financial stability, and overall reliability as a tenant.
5. Sadly, customer service and follow-up often fall short in many screening services. It's essential to differentiate between tech-only services and full-service providers that offer client services. These include the disclosure of the information gathering and decision-making process, assistance with correcting errors in reports, and providing guidance and support throughout the screening process. Additionally, working with a service provider that possesses real estate expertise can prove to be an invaluable asset.
Fortunately, solutions to these common tenant screening problems exist. Clara, for instance, offers comprehensive solutions to these challenges. Clara ensures complete information is gathered through detailed renter profiles, a step-by-step application process, and identity and income verification from Plaid. Real-time email notifications on completed applications keep landlords in the loop at all times. Moreover, Clara provides a TransUnion Credit Report with comprehensive data, a consistent application process, a detailed background eviction report, and helpful customer support.
In conclusion, while tenant screening can indeed be a process fraught with challenges and potential pitfalls, with Clara, you can be assured of a more streamlined, efficient, and reliable process. Adopting a reliable screening process is not just a good business practice, but a vital step to protect your investments, ensure tenant satisfaction, and foster a harmonious landlord-tenant relationship.