How do you do your application process? You are in charge?

Question

if you are trying to find good tenants,

do you charge an application fee and then do all the research YOURSELF?

or do you pay a company or another person to do it, just any third party?

Nathan Gesner · Answer

Screening services don't check everything. They are great at verifying identity and address history. They can run a full credit report and provide valuable information. Criminal and eviction data is pretty sketchy because many counties don't share their data publicly and the vast majority of Landlords never report evictions.

You have to fill in the gaps yourself by checking references, verifying income, etc.

Account Closed · Answer

I have used mysmartmove and have the applicant fill out a paper copy for my records then they get a email to fill it out online and review it myself.

Kenneth Garrett · Answer

@Charlie Moore

I charge an application fee that covers the cost of the 3rd party review.  I also use smartmove from TransUnion as Account Closed had mentioned.  The applicant pays on line directly to TransUnion.  I receive the report.  I do not charge more than the cost of the 3rd party review.  It is pretty common in my area to pay for an application fee which covers the cost of the credit and background check.

Rob B. · Answer

Hi Charlie! Definitely a great question. As you can imagine, there are a ton of online resources you can use to screen tenants, but as far as process goes, it is completely up to you. My recommendation is that you screen tenants using a service which offers the full spectrum of reporting (job history, rental history, income verification, credit score, any adverse items as a part of their full credit history, nationwide criminal background check, terrorist list check, sex offender list check and eviction history).

There are services which allow them to complete the application themselves online; some services even allow tenants to sign a lease with you online using the same platform (and offer other tools like online rent collection and managing maintenance requests). This takes the onus off of you as the landlord (as you can imagine, there's quite a bit of internet fraud plaguing the industry so the last thing you want is something to come back on you if you're dealing with a tenant's social security number / other personal information). A lot of landlords say it is a must-have (in case of legal proceedings) but as long as you have a copy of this tenant's valid form of identification you should be ok. Let me know if you have any questions about platform recommendations! Happy to help out when I can.

Taylor Roeling · Answer

@Charlie Moore Screening tenants properly is really important in this day and age. With an online application, you can require your applicants to go through a third party screening from a trusted source like TransUnion. They will pay the fee that comes with the criminal background check and credit report - you won't be charged a thing (usually it's only $30-45). Honestly, this is the best way to ensure you are getting responsible tenants - if they refuse to be a part of the tenant screening process that might be a red flag.

Arya Jackson · Answer

Doing your own research is great, and you can always verify the information you find. But reports can provide you with a base to go off of. I found it important and necessary to run a background check on potential tenants. I am a brand new landlord and was wanting to find tenants I could trust quick. I was scrambling to find the best solution for a few reasons: I'm new, I am trying to run my rental all on my own, I've never had someone screened before, and I didn't realize there were fees involved with these background checks.

After doing lots of research I came across Tellus, a property management app. They posted my listing everywhere and I was able to run a free background check from the leads I was getting through the app; they use Naborly for the reports, so it's trustworthy. This was the best way for me to find good tenants I could trust and it was completely free, no gimmicks.

Nathan Gesner · Answer

@Charlie Moore I charge $20 per application. My screening service charges $16.95 so I'm clearing a whopping $3 per application. My goal is to find tenants. I can make money off them once they are approved.

However, I am thinking of bumping it to $25 or $30 because I've been at $20 for nine years.

Charlie Moore · Answer

@Nathan G.

Nathan, how much do you charge per application?

How do you do your application process? You are in charge?

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