Last Updated: April 2024
Tenant screening is an extremely important component of rental property management. Proper screening ensures that a landlord is getting the right type of tenant for their risk tolerance, and mutually beneficial relationships for both parties. Poor screening can result in poor relationships for both landlord and tenants. Below we take a look at what rental property tenant screening is, what to look for when screening, and the different types of screening methods available to landlords.
9 Types of Tenant Screening Reports
What are on tenant screening reports? Nowadays, tenant screening reports cover much more than just credit checked with major credit bureaus such as Experian, Equifax, or TransUnion. Below is a list of the most common types of reports that may be included in an overall tenant screening process.
Credit Report
Provides an overview of the applicant’s credit history, including credit score, payment history, outstanding debts, and inquiries
Eviction History Report
Checks for any previous evictions or unlawful detainer actions filed against the applicant.
Criminal Background Check
Reveals any past criminal convictions or history of criminal activities.
Sex Offender Registry Check
Determines if the applicant is a registered sex offender.
Rental History Report
Verifies the applicant’s rental history by checking previous rental references, evictions, and lease violations.
Employment Verification
Confirms the applicant’s employment status, income, and stability.
Income Verification
Assesses the applicant’s ability to pay rent by verifying their income and employment status.
Bankruptcy Report
Identifies if the applicant has filed for bankruptcy in the past.
Identity Verification
Ensures the applicant’s identity is valid and matches the information provided on the application.
Residential Tenant Screening
The residential rental property tenant screening process would be used during the leasing of an apartment or a single family rental (SFR). Residential leases are usually under the name of the individual person and possibly a cosigner if applicable. Creditworthiness will be checked for all people who will be on the lease agreement.
Commercial Tenant Screening
The commercial rental property tenant screening process would be used in the process of leasing commercial spaces such as a retail property, office space, or industrial warehouse. Commercial leases are usually under the name of the business, however, Landlords sometimes may require a personal guarantee if in their opinion, business financials are lacking or the company is relatively new.
Pet Screening
Pet screening is a process used by landlords and property managers to evaluate the suitability of pets accompanying tenant applications for rental properties. This procedure often involves assessing pet attributes to ensure compliance with property policies and local regulations. The aim of pet screening is to mitigate potential risks and ensure a harmonious living environment for all residents.
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Top 25+ Tenant Screening Services
Tenant Screening services are third-party providers of background data such as screening reports on tenant applicants. Due to the sensitive data they gather, they are classified as a Consumer Reporting Agency (C.R.A.) and regulated by the Fair Credit Reporting Act (FCRA). Landlords and property managers have many choices when it comes to selecting a tenant screening service, so we’ve included a few of the top online tenant screening services.
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Rental Property Tenant Screening FAQ
What is Tenant Screening?
Tenant screening is the act of evaluating prospective rental tenants based on a series of quantitative and qualitative factors. The screening process culminates in an ultimate “Yes” or “No” decision to fully approve an applicant, approve the applicant conditionally (such as requiring an increased security deposit or cosigner), or deny tenancy.
What is the Best Tenant Screening Service?
The best tenant screening services ultimately depend on many different variables such as type of residential property (e.g. single family rentals vs commercial real estate), management (self manage vs professional property manager), and other things. The right software can act as an essential tool for rental property business, whereas the wrong choice could result in unnecessary expenses for unused features. Below is our overall top pick for each category:
Residential Screening
SmartMove (TransUnion)
Why We Like SmartMove by TansUnion – SmartMove generates the same common reports like other tenant screening softwares, however, we like it the most due its simplicity to use and trust of data handling as TransUnion is one of the major credit bureaus.
Commercial Screening
Experian Business Credit
Why We Like Experian Business Credit – Experian is one of the major credit bureaus, which provides them with access to a large and deep pool of data on businesses, as well as the individuals associated with them.
Pet Screening
PetScreening
Why We Like PetScreening – There aren’t many major players in the pet screening service field, but PetScreening does a great job at making the screening process scalable and fair.
How Long Does the Tenant Screening Process Take?
The duration of the tenant screening process can vary depending on the depth of the screening. Typically, it takes anywhere from 1 to 5 business days to complete. Basic screenings, such as credit and criminal background checks, may be faster, while more comprehensive screenings involving rental history, employment verification, and reference checks might take longer. The key is to balance the thoroughness of the screening with the need to fill the rental quickly, ensuring you make informed decisions about potential tenants while minimizing vacancy periods.
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About the Author
Ryan Nelson
I’m an investor, real estate developer, and property manager with hands-on experience in all types of real estate from single family homes up to hundreds of thousands of square feet of commercial real estate. RentalRealEstate is my mission to create the ultimate real estate investor platform for expert resources, reviews and tools. Learn more about my story.
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