how to run tenant's credit score?

how to run tenant's credit score?

Rental Property Investor · Philadelphia, PA · Member since 2020 · 83 posts · 23 votes

Hi, what's the best site to get a tenant's credit score? and is it free? 

Also, is it important to check criminal history? if yes, what's the site to do so?

Thank you! 

6Reply
223 views

Most Popular Reply

Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
5y

@Vinh Nguyen several good suggestions where offered. Be aware that there are many rental property manager websites you can use for screening. They all use one of the major credit agencies. No matter which credit agency they use, it should return similar information. The three credit bureaus are TransUnion, Experian and Equifax

Hard pull versus soft pull: 

A hard pull is when you pull credit on someone. This is when you are providing the persons name, social security number and payment to a credit screening agency. The hard pull shows up on their credit report. A hard pull has a negative effect on their credit score. A soft pull is when the tenant requests their own credit report. They provide their information to the credit agency and they pay. They agree to SHARE it with you. The screening service provides a copy directly to you AFTER the tenant has seen it themselves. The other advantage of a soft pull is it removes you from certain data handling and credit screening laws. If you do a hard pull and reject someone based on that pull, you are required to provide a letter explaining why they were rejected. If you do a soft pull, the applicant knows exactly what you see. Most every service uses soft pull, so as long as you are not typing in the applicants social security number or paying, it should be soft pull. Avoid hard pull.

Here is a summary of services mentioned in this thread:

Smartmove is tenant screening provided directly by a credit reporting company, TransUnion. One advantage of using their service is that TransUnion is a well know and trusted company. This is a soft pull service.

Cozy is an application, credit screening and rent collection service. Be aware that Cozy is no longer accepting new customers. They were acquired by CoStar Group and they are redirecting customers to Apartments.com. The advantage of Apartments.com is they also offer a listing service to advertise properties with a decent amount traffic. Apartments.com uses TransUnion for soft pull credit reports, so you will get the identical report you would get through Smartmove. Cozy uses Experian for credit reporting, so existing users setup on Cozy are getting Experian credit reports. There is not much difference between TransUnion and Experian credit reports. Bottom line is you cannot sign up with Cozy, so it will be Apartments.com. In addition to listing your property on Apartments.com, you can also accept applications and collect rent. Just a note for people already using Cozy, they will be moving all their accounts over to Apartments.com this year some time. I was told this directly by Apartments.com.

RentPrep is an application, credit screening and rent collection service. They also use TransUnion for soft pulls.

Rentspree is an application and credit screening service. They also use TransUnion for soft pulls. I don't think they offer rent collection.

Myrental is just for application and credit screening services. They don't disclose who they run credit through, other than saying one of the big three.

Zillow is a listing service, application services, credit screening and rent collection service. Zillow is comparable to Apartments.com (Cozy). Zillow soft pulls their credit reports through Experian similar to Cozy.

Summary: 

I personally use Cozy, which gives me Experian credit reports. I have been happy with the information provided. As I mentioned, Cozy is pushing people over to Apartments.com, so I will end up there in the next year. I like using Cozy because tenants sign up one time and use the same account for rent collection. If you use Smartmove, you still need to set the tenant up someplace else if you are collecting rent online (you want to collect rent online). You may notice I added Zillow as an option in the services I summarized. They are newer to the screening and rent collection business, but Zillow is the number one place for listing rental properties. 

If I was shopping services today, I would compare Apartments.com and Zillow. They are the only places where you can list a property (and actually generate viewing traffic), accept applications, do credit and background screening and collect rent. The actual credit reports are not going to be much different. You are going to get a TransUnion or Experian report most likely whomever you use. I like the one-stop shop benefit, because managing less services is a time saver.

See this reply in the discussion

58 Replies

Jump to latestLatest
  • Specialist · PA · Member since 2016 · 143 posts · 71 votes
    5y

    @Vinh Nguyen We use Apply Connect dot com $28.50 for Tenant or landlord. Gives us score, evictions check, Credit file of the tenant. Good Luck!

  • Rental Property Investor · Philadelphia, PA · Member since 2020 · 83 posts · 23 votes
    5y

    @Joe Splitrock thank you! Ill probably use smartmove. Also I was going to use cozy for rent collection. Since they’re closing, do you recommend I sign up via apartments.com, assuming they provide this service?

  • Rental Property Investor · Philadelphia, PA · Member since 2020 · 83 posts · 23 votes
    5y

    @Chelsea Kline thank you !

  • Rental Property Investor · Philadelphia, PA · Member since 2020 · 83 posts · 23 votes
    5y

    @Steve Morris thank you!

  • Rental Property Investor · Philadelphia, PA · Member since 2020 · 83 posts · 23 votes
    5y

    @Daniel Ziner thank you!

  • Rental Property Investor · Philadelphia, PA · Member since 2020 · 83 posts · 23 votes
    5y

    @Dan Maciejewski thank you!

  • Rental Property Investor · Philadelphia, PA · Member since 2020 · 83 posts · 23 votes
    5y

    @Bob Stevens maybe some day but not at this moment, considering this is my first one. Thanks!

  • Rental Property Investor · Philadelphia, PA · Member since 2020 · 83 posts · 23 votes
    5y

    @Steve K. Thank you!

  • Investor · Portland, OR · Member since 2020 · 10 posts · 4 votes
    5y

    @Vinh Nguyen I love https://cozy.co! I use their online app which offers background and credit checks as well as ACH rent collections. It’s been a dream to streamline all of that.

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    5y

    @Jon Q. really, so how does and owner from out of state PM his property ? How do they deal with tenants, do repairs, place and replace tenants, oversee repairs etc,,,,,? Answer they cant , PM co handles all Owners from out of state should not be ( none of my clients are ) involved with anything. 

  • Jeremy KleierPro Member
    Investor · Woodford, WI · Member since 2013 · 42 posts · 14 votes
    5y

    I am in cozy.co fan club at the moment. 

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y
    Originally posted by @Vinh Nguyen:

    @Joe Splitrock thank you! Ill probably use smartmove. Also I was going to use cozy for rent collection. Since they’re closing, do you recommend I sign up via apartments.com, assuming they provide this service?

     You could just use Apartments.com for screening and rent collection. The applicant will setup one account once during the application process and use the same account for rent collection. 

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y
    Originally posted by @Shona Lepis:

    @Vinh Nguyen I love https://cozy.co! I use their online app which offers background and credit checks as well as ACH rent collections. It’s been a dream to streamline all of that.

     Cozy is no longer accepting new customers. They were acquired and are forcing everyone over to Apartments.com. They told me some time in the next year existing customers will be moved.

  • Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    5y

    Full national criminal, credit, eviction check is what you want and have the applicant pay for it. There are a lot of sites that offer this service, just a matter of finding one you are most comfortable with. 

  • Martin NealPro Member
    Rental Property Investor · Chicago, IL · Member since 2017 · 293 posts · 383 votes
    5y

    @Vinh Nguyen Cozy/apartments.com. The tenant pays $25-$40

  • Member since 2018 · 2 posts · 0 votes
    5y

    @Vinh Nguyen

    I used applyconnect.com.

  • Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    5y

    @Vinh Nguyen Use Zillow Rental Manager. It gets the tenant to pay for the credit check and background check and all you get is a report!

  • Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
    5y
    Originally posted by @Bob S.:

    @Jon Q. really, so how does and owner from out of state PM his property ? How do they deal with tenants, do repairs, place and replace tenants, oversee repairs etc,,,,,? Answer they cant , PM co handles all Owners from out of state should not be ( none of my clients are ) involved with anything. 

     Yes. Not hard. I pickup the phone when I need to, but it’s rare... spend lots of time on property and tenant selection, so I get very few calls.  99% of property management is proper tenant screening/tenant selection.

    Easily, using trusted contractors. Easily, using leasing agents.  I’ve been doing this in 19 cities across 5 states for 20 years, generating 20%+ on all properties.

    If you haven’t done it or know how to do it, it does not follow that it can’t be done.  There are literally hundreds of thousands of investors self managing their properties nationwide.  You just need to start... you’ll make mistake’s, but just keep moving forward and you’ll develop solutions, and continue moving forward.

    You got more questions?

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    5y

    @Jon Q. not worth it , PM cost on avg ( in my market ) about 70 bux a month, meaningless. Why deal with any of the headaches, for pennies....... Not sure which market you are referring to but in the Cleveland markets VERY difficult to run a rehab and PM from out of state. NOT recommended. I am speaking from 10 years of experience having done more then 500 deals out there  . 

    Good Luck 

  • Investor · Waco TX / Conroe, TX · Member since 2017 · 376 posts · 228 votes
    5y

    Any body have any experience with Avail?

    I have heard alot of hype but not sure if it can run credit checks as well.

  • Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
    5y
    Originally posted by @Bob S.:

    @Jon Q. not worth it , PM cost on avg ( in my market ) about 70 bux a month, meaningless. Why deal with any of the headaches, for pennies....... Not sure which market you are referring to but in the Cleveland markets VERY difficult to run a rehab and PM from out of state. NOT recommended. I am speaking from 10 years of experience having done more then 500 deals out there  . 

    Good Luck 

    Whether it's "worth it" or not depends on the number of units you've got. If you got hundreds of units nationwide, it becomes "worth it" quite quickly. Also, it's not just "70 bucks" because those unethical agents who manage SFR part time extract more than management fees on average.


    Any who has real experience investing and some manage their own properties for more than 10 years would know this.   

    I don’t invest in Cleveland nor in the state of Ohio at all (see US Census).  Virtually no population or job growth... and There’s no appreciation to be had there.  I’ve been investing full time for over 20 years.

  • Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
    5y

    @Vinh Nguyen

    I’d gain some experience managing your own property even IF you decide to hire a PM.  During that time, you’ll save money and gain the experience you’ll need to understand what PMs actually do... so you can manage them and ensure it’s being done properly.

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    5y

    @Jon Q. well I can only go by my personal experience of doing about 500 deals and owning many many doors.  PM handles all, owners are not bothered ( nor should they be ) with BS, $70 bux or so per month,(  SF, avg net rent about 700 after all expenses with PP of avg 65k )  repairs below all competitors, and not having to worry about it ,  screening tenants ,evicting etc, NEVER would want to be involved with any of that . Is all about the team around you. Assuming you have dozens of doors and have people you can trust if so great !

    I wish you all the best 

    PS you really should not comment on markets you have zero knowledge on besides google. Pricing has more then double in the last 6, 7 years, and seems to be continuing as there is no inventory, especially the MF market . Hmm no jobs, so I guess the more then 2 mill sq ft Amazon built, the new Hilton, Marriott A Loft, and other hotels , and many many new restaurants and of course the Cleveland Clinic is MASSIVE along with many other health care cos. Again really should not comment on things you have no knowledge of , Oh Forbes had Cleveland as the # 1 rental market 2017 - 18, but they were not paying attention as we were getting 30% YES 30% net caps prior for years.... Again all the best 

  • Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
    5y
    Originally posted by @Bob S.:

    @Jon Q. well I can only go by my personal experience of doing about 500 deals and owning many many doors.  PM handles all, owners are not bothered ( nor should they be ) with BS, $70 bux or so per month,(  SF, avg net rent about 700 after all expenses with PP of avg 65k )  repairs below all competitors, and not having to worry about it ,  screening tenants ,evicting etc, NEVER would want to be involved with any of that . Is all about the team around you. Assuming you have dozens of doors and have people you can trust if so great !

    I wish you all the best 

    PS you really should not comment on markets you have zero knowledge on besides google. Pricing has more then double in the last 6, 7 years, and seems to be continuing as there is no inventory, especially the MF market . Hmm no jobs, so I guess the more then 2 mill sq ft Amazon built, the new Hilton, Marriott A Loft, and other hotels , and many many new restaurants and of course the Cleveland Clinic is MASSIVE along with many other health care cos. Again really should not comment on things you have no knowledge of , Oh Forbes had Cleveland as the # 1 rental market 2017 - 18, but they were not paying attention as we were getting 30% YES 30% net caps prior for years.... Again all the best 

    As part of our ongoing market research, we monitor ALL markets nationwide, even the major markets in OH... though as I said, we would not invest there for several reasons.

    Your assumptions are wrong.  We access all kinds of specialized info.  But you don’t need to.  Any investor anywhere can obtain the most useful market info available... from the US Census Bureau and Bureau of Labor Stats online and for FREE!

    If $700 is your rent, the SFRs you’re investing in must be in rough areas.  That may be why you’d rather have someone else doing it :-)

    We only invest in upper middle class areas with average rents $1500-$2000+

    Cleveland is not the #1 rental market per Forbes. That was an article written by a phantom writer, not someone with professional experience in REI. That would be Austin, Charlotte, Dallas, San Antonio, Colorado Springs, and many other places we hold investments. I don't have to send you direct links. We both know I'm correct that these markets have appreciated far ahead of Cleveland.

    If cash flow in rough areas is your model, and that works for you, that’s great.  We don’t acquire in “rough areas” nor would we manage a property in such an area.  There’s money to be made in those areas, but it’s not for me. Not a lifestyle I want.

    Good luck with that, but it’s not difficult to build an efficient property management model of you acquire the right property, in the right locations, and attract the right tenants.

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    5y

    @Jon Q. AGAIN, you are making comments with zero knowledge just google . Sure these are blue collar BUT IN KNOW MEANS rough areas.  You really are very arrogant making comments with zero knowledge. I do not know any other city in america, that has so many from overseas investing in it . Heck I flipped about 250 props to Israel investors , and I am just one person, they have bought 1ks and 1ks . I am not here to  "sell " you anything, just correcting your remarks. Not the life style, hmm, again you really need to talk with people that have 10, 20 doors that paid 40- 70% less then todays pricing  and see their life style 

    VERY difficult to get the 1.5 - 2% rule  10- 15% NET caps in the upper middle class,,,,,,

    All the best 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.