Credit and Background Checks

General Landlording & Rental Properties
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Credit and Background Checks

Kyle HoppmanPro Member
Madison, WI 路 Member since 2019 路 37 posts 路 23 votes

I have a tenant that is going to move out in about three months and I just started advertising the vacancy. How does everyone conduct their credit and background checks on potential renters?

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Cassi Justiz
Rental Property Investor 路 Edmond, OK 路 Member since 2017 路 1k+ posts 路 1k+ votes
6y

I use buildium for my software and I utilize their credit/background search. It's one of the more expensive options and it's really not necessarily unless you are managing quite a few units. 

You could check into mysmartmove.com or set up an application through cozy.co and have the tenants apply through there. Cozy.co is free (unless you want to pay for extra features) and great for basic functions like online applications, advertising and collecting rent. 

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  • Cassi Justiz
    Rental Property Investor 路 Edmond, OK 路 Member since 2017 路 1k+ posts 路 1k+ votes
    6y

    I use buildium for my software and I utilize their credit/background search. It's one of the more expensive options and it's really not necessarily unless you are managing quite a few units. 

    You could check into mysmartmove.com or set up an application through cozy.co and have the tenants apply through there. Cozy.co is free (unless you want to pay for extra features) and great for basic functions like online applications, advertising and collecting rent. 

    3Reply
  • Matt Ziegler
    Rental Property Investor 路 Colorado Springs, CO 路 Member since 2020 路 433 posts 路 284 votes
    6y

    we use a service called encompass. Screening is too important to go cheap on!

    0Reply
  • Bjorn AhlbladPro Member
    Investor 路 Shelton, WA 路 Member since 2017 路 6k+ posts 路 6k+ votes
    6y

    @Kyle Hoppman we use the State LL Association for everything, leases, forms, legal support, C&B checking and networking. 55 bucks a year.

    0Reply
  • Mike McCarthy
    Investor 路 Philadelphia, PA 路 Member since 2016 路 2k+ posts 路 1k+ votes
    6y

    I use Cozy. The application is all online and they do the background and credit check for $40 - charged to the tenant.

    Easy and works well!

    2Reply
  • Sharlene Mulchandani
    Cincinnati, OH 路 Member since 2020 路 299 posts 路 476 votes
    6y

    I suggest using Innago. The platform is integrated with Smartmove, so you get all your credit, criminal and eviction reports directly from TransUnion. Plus the software and screening features are free for you to use, Innago charges your tenants directly for screening reports.

    2Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker 路 Cody, WY 路 Member since 2010 路 28k+ posts 路 41k+ votes
    6y

    Use the search bar above for "tenant screening" or "application screening" and you'll find thousands of posts and blogs discussing this.

    Before focusing on cost, figure out what the service provides. Do they give a "recommendation" or do they give you all the details and let you figure it out? Is it a summary credit report, or the full report? Criminal details? Do they verify identity? Is their report easy to read and understand? 

    Test out their online application. Is it easy to get an applicant to find them and complete the application? Can applicants attach supporting documentation easily, like a photo ID and pay stubs?

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  • Patrick M.
    Rental Property Investor 路 Red Bank, NJ 路 Member since 2017 路 1k+ posts 路 1k+ votes
    6y

    I use Cozy for 2 reasons. 

    1. The tenant pays and knows it is "for real"

    2. They forward a copy on to the tenant so it reinforces the reality of being a responsible individual.

    There may be some downtime on background checks right now due to Covid19.

    0Reply
  • Joseph Copella
    Member since 2019 路 85 posts 路 50 votes
    6y

    @Kyle Hoppman BiggerPockets has recommended tenant screening companies on the landlord resources tab.  You can find the landlord resources tab by hovering over the "tools" bar and clicking "Landlord Resources" which you can find under the services area.

    I would recommend researching what company would best fit your screening needs.  You might also find it helpful to search "tenant screening" or "background checks" in the search bar to see what services other investors have been using.

    Best of luck!

    1Reply
  • Nicole Heasley Beitenman
    Investor 路 Youngstown, OH 路 Member since 2017 路 2k+ posts 路 2k+ votes
    6y

    I've used tenantbackgroundsearch dot com for years. 

    0Reply
  • Joel Atzenhoffer
    Property Manager 路 Columbus, OH 路 Member since 2020 路 28 posts 路 12 votes
    6y

    @Kyle Hoppman our company uses Transunion and have been very happy with their services. 

    0Reply
  • Bill Goodland
    Rental Property Investor 路 Allentown PA, United States 路 Member since 2016 路 567 posts 路 442 votes
    6y

    @Kyle Hoppman I use Cozy and it works really well for credit and background checks. $39.99 and the tenant pays for it. Free for you

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  • Rob B.
    Chicago, IL 路 Member since 2018 路 546 posts 路 227 votes
    6y

    Hi Kyle! Great question. There are definitely some tools that can help with managing things moving forward. As others have mentioned above, Cozy is a good tool, but there are definitely others worth giving some serious consideration.

    Aside from providing the basics (ie. listing tool to get the property published to 10+ major sites; scheduling tool to schedule viewings, etc), tenant screening is a big part to look out for. With comprehensive applications -- including pulled reports from TransUnion and nationwide criminal background checks + credit checks + eviction history -- the right platform should make it as seamless as possible for you if you're managing on your own. 

    One thing Cozy doesn't have is a digital lease creation tool. Still, other platforms offer what they offer like online payments and maintenance tracking. This creates some added value too as the right one will offer your tenants additional capabilities (ie. their ability to report their on-time rent payments to the credit bureaus as a way of building their credit scores, which can create an added incentive for making sure they pay that rent on time). I hope this helps! And best of luck on your decision! @Kyle Hoppman

    0Reply
  • Charles E. Bruckman
    San Diego, CA 路 Member since 2019 路 8 posts 路 1 vote
    6y

    @Monty Bruckman

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  • Dhaval Sheth
    Westfield, IN 路 Member since 2017 路 27 posts 路 6 votes
    5y

    A follow up question on this discussion. After pre-screening and house tour, I have 3 potential tenants ready for filling out the application, paying application fee and credit background check. From pre-screening, I don't foresee any surprises on the reports (馃). Do I pull credit on all 3 at the same time since most probably two of them will be paying for it without being accepted? 

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