Tenant screening - timing and tool of choice?

Question

Hey there,

Recently we've tried the transunion tool and we have generally found prospective applicants shying away from this online approach.

So maybe you can help me sort this out.

One, when, at what point in the process, do you bring up and do the screening?

And then, what's the simplest, quickest, cost effective way to do the screening offline and do you need the tenant to sign something?

Thank you~

Michael Rossi · Answer

I start the screening on the phone!  I don't want to waste time showing a rental to someone who can't pass my screening.  So, I ask them who all will live there.  Then, I tell them that I thoroughly screen everyone that will live there and I don't take anyone that has been evicted in the past 7 years; I don't take anyone that has a felony; I don't take anyone that has more than 2 misdemeanors in the past 3 years; or anyone that has any illegal drugs on their record in the past 7 years.  If they tell me they will pass and I'm near my computer, I'll ask their names and do a quick check on the county court website.  That takes about 15 seconds and gives me a very good preliminary indication as to whether the tenant is ok or not.  If they make it this far, then I'll show them the rental and subsequently do a complete screening.

Edwin Brown · Answer

Call it old school, but i have all tenants fill out an application before i even show them any property and we do it in person in my office. It really gives me the opportunity to get a feel for the tenant. I can usually tell right off if we are going to have problems or not.

Account Closed · Answer

Taylor,

Two methods that have been effective for me is using an application that details their financial and residence history.  There are example application that can be found online or I could even e-mail mine to you.

The second method that is very helpful is to ask the potential tenant on the spot (after filling out the application) to see their current residence.  This will give you a great idea of how this tenant will treat your property.  If they delay or "him and haw" they may not be great tenants.  If they let you come visit their current residence right away they probably do not have much to hide and could be an ideal tenant.

Hope this helps!

Dan

Tracey B. · Answer

Mike gave you the best advice. I do the same thing. I screen over the phone and run their names in the local court database to see their criminal history. I also ask them why they are moving from their current place. This is a MUST ASK. It tells you everything you need to know about the person. Problem tenants will start complaining about the landlord and all their issues, I love hearing these stories as I never to rent to these type of people. Decent people say things that aren't problematic. I also ask where they work, how long, who will live with them etc and verify this info from local court records to see how honest they are. If they pass this preliminary screening, only then will I make appointment to show the unit. I also stress over the phone the checks I will run on them and the application fee. When I meet them I also ask the same questions to see if they slip up and tell me something they didnt say over the phone, I try to gauge their personality by getting them talking. This has worked very well for me. One thing I overlooked that recently caused me issues was an elderly couple that seemed ok but had their children doing all the talking. This is how they deal with problems too, use their children, something I do not tolerate. Always prescreen over the phone and dont waste your time with people you dont get a good vibe from. A lot of time people dont want to answer my questions over the phone and I dont waste my time meeting with them.

Joe M. · Answer

this is a good point.  in the ads I run on craigslist and various other places I clearly state the screening process and the application fee.  if someone calls in from a yard sign then I explain to them the screening process and the application fee.

So Mike is right, the screening process begins with the first contact with a prospective tenant.  It definitely weeds out a lot of folks, but then again that's the purpose of the process isn't it?

I'm still learning how I can better refine this process but so far this seems to work OK.

Joe M. · Answer

My first few screenings I used the biggerpockets/transunion screening tool.  It worked fine but I found that I was constantly walking people step by step through the process, some folks didnt have full time computer access, some people couldn't provide an email address etc.

So I swapped over to using another tool/method of simply collecting an application fee up front and have them fill out the application on my website or in person.  I get all the information I need to run their credit/criminal history report myself.  You can use any number of websites to do this,I think they average cost is around 25-30 bucks/screening.

Account Closed · Answer

Taylor,

Another viable option would be the traditional method of calling previous landlords.  A reference check never hurts.  I hope this was of some value to you.

What type of property are you trying to rent?

Steve Babiak · Answer

I charge a NON-REFUNDABLE application fee sufficient to cover the payments I will incur to get the various screening reports (see MikeOH's earlier post for a good list).  If the tenant hasn't yet seen the place, they don't even know whether they will like it or want it - so they will be reluctant to pay up front for an application fee until they think they want to rent that unit.

Now, if you aren't charging any application fee, or you make it refundable (two things I DON'T recommend), then maybe getting an application first can work.

Edwin, I'd be curious to hear how you work this.

Joe M. · Answer

There's a ton of different sites you can do this, I just happened to like screeningworks site.

Tenant screening - timing and tool of choice?

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