All Forum Posts by: Carlos Hennings

When you’re self-managing, the key is finding a screening service that’s FCRA-compliant, offers direct client support, and values accuracy over speed of results :

• Full Credit Reports with FICO Scores (soft-pull preferred so it doesn’t impact the applicant’s credit).

• Nationwide Criminal and Eviction Searches that are manually verified for accuracy.

• Employment and Income Verification Tools that connect directly to payroll or bank data instead of relying on uploaded documents.

• Identity Verification Features that confirm facial biometrics and ID authenticity to prevent fraud.

You’ll want something that integrates easily with your application workflow — whether you send applicants a link or manually enter their info — and delivers reports within a few hours.

Feel free to message me any time if you’d like to chat.

Great question, accuracy is one of the biggest challenges in tenant screening today. Most online systems are automated, which means they rely on databases that aren’t always current or verified. The best approach is to work with a screening provider that uses FCRA-certified human review in addition to database searches.

A thorough report should include:

• Full credit report (from a major bureau, soft-pull if possible)

• Nationwide criminal and sex offender search (Multiple data providers not single)

• Eviction history 

• Judgments and liens (No longer appear on credit reports)

• Optional tools such as income, employment, and ID verification to detect fraud

When comparing services, ask how they verify mismatched data and whether they confirm records manually. Providers that combine data automation and human verification tend to deliver far more accurate, court-verified results than fully automated systems.

In short — look for a screening solution that values accuracy over speed and uses multiple data sources reviewed by trained screeners rather than just instant database pulls.

When vetting a property management company, especially as an out-of-state investor, it’s critical to approach it like you would any other major investment decision: verify, document, and confirm. Here are a few key areas to evaluate:

1. Transparency & Communication

Ask how often you’ll receive updates (monthly reports, maintenance logs, rent rolls).

Confirm that they have an accessible point of contact, not just a generic inbox.

Watch for vague answers around communication frequency or reporting access.

2. Screening & Tenant Placement Process

Request specifics on how they screen tenants: Are reports FCRA-compliant? Do they verify income, employment, and identity?

Look for providers who use manual review with verification tools (e.g., Argyle for income/employment, Cerebrum vID for ID verification, Trigo for rental history). These methods reduce fraud and speed up approvals.

Be cautious if they can’t explain how they prevent or detect fake paystubs or altered IDs—this is a growing issue in property management.

3. Compliance & Licensing

Confirm they’re licensed in the state where your property is located and that they understand local housing laws (Fair Housing, habitability, security deposit handling, etc.).
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A quality management team should be able to clearly explain how they protect your assets, minimize vacancy, and maintain compliance. If they can’t, that’s a sign to keep interviewing.

Great question! Since 2018, the three major credit bureaus (Equifax, Experian, and TransUnion) have stopped including most tax liens and all civil judgments on consumer credit reports. This was part of the National Consumer Assistance Plan, which aimed to improve the accuracy of credit data and reduce the chances of reporting errors.

These records haven’t disappeared—they just aren’t included in credit reports anymore. If you want to review them, you’d need to run a separate search, like a Judgments & Liens check.

Its highly unlikely that any civil judgement and most tax liens would not appear on a consumers credit report as all three credit bureaus have stopped reporting these records since 2018. This change, implemented by the National Consumer Assistance Plan, is designed to benefit consumers by making their credit reports more accurate and easier to correct errors. These records must now be pulled separately.

When it comes to screening, one of the most important things you can do is choose a platform that specializes specifically in tenant screening—not just one that offers it as a side feature. Many platforms offer basic or instant checks, but those often miss key information. Here’s what a thorough screening should include:

• Credit Report – Offers insight into the applicant’s financial reliability.

• Judgments & Liens Search – These no longer appear on standard credit reports, so they must be pulled separately.

• Eviction History – Crucial for spotting prior lease violations or payment issues.

• Criminal Background Check – A nationwide search provides a broader safety check.

• ID Verification – Confirms the applicant is who they claim to be.

• Income Verification – Instead of relying on potentially manipulated pay stubs, this option pulls actual bank deposit data over time to confirm income stability.

  
  You're on the right path—just keep building your processes, and don’t be afraid to ask questions along the way. Self-managing can be very rewarding with the right tools in place.
  
  
  

Not all background checks are the same!

When choosing a screening service, make sure it covers:

• Credit Report – Looks at payment habits and financial responsibility.

• Judgments & Liens Search – These don’t show on credit reports anymore but can uncover unpaid debts.

• Nationwide Eviction Search – Past evictions are a big red flag.

• Nationwide Criminal and Sex Offender Search – Helps spot any serious legal issues.

• Income Verification Report – Pulls real bank deposit info instead of relying on pay stubs.

Yes, it is standard practice to have the applicant cover the cost of their background check. Just be sure to use a service that provides a thorough and comprehensive report, rather than a basic surface-level check. Having accurate, detailed information is critical when deciding who you are entrusting with your property.

This is becoming more and more common. Many larger property management companies are refusing to provide rental verifications, and even when they do, the information can often be incomplete, inaccurate, or subjective. On top of that, there’s always the risk of an applicant having a friend or family member pose as a prior landlord—something we see more often than you’d think.

Another important thing to remember: rental verifications can be very subjective ("good tenant" to one manager might not mean the same thing to another). Relying on these calls opens you up to inconsistent decision-making, and can even create risks around Fair Housing or discrimination claims.

Instead of relying too much on rental verifications, I'd recommend focusing more on verifiable facts through a complete screening report that includes:

🔹 Credit Report – Reviews overall financial responsibility, payment patterns, and open accounts.

🔹 Judgments & Liens Search – Identifies court judgments or unpaid debts that no longer show up on traditional credit reports.

🔹 Nationwide Eviction Search – Flags any prior evictions that may not have been disclosed or mentioned during a landlord call.

🔹 Nationwide Criminal and Sex Offender Search – Provides a broader view of any criminal background or offenses across multiple states.

🔹 Income Verification Report – Pulls actual deposit data directly from the applicant’s bank account history to confirm real income (much better than chasing pay stubs or letters that could be manipulated).

By leaning more on verified, factual data instead of subjective rental references, you can make safer, more consistent decisions while protecting yourself against claims of unfair screening practices. Always better to rely on what you can document and defend.

The challenge with using AI for tenant screening is that the results often aren’t as accurate as you'd expect. That’s because there are strict reporting laws that limit what screening companies can legally include. If certain details are missing from a record—due to how it was filed or how it’s accessed—the report might come back clean, even if something exists.

Screening providers aren’t liable in these cases because they’re bound by federal law. For the most accurate results, you need a provider that can tap into multiple data sources and, when needed, manually call the court to verify and capture missing info—something AI simply can’t do right now. It sounds fast and efficient, but once you understand the regulations in this industry, the limitations of AI screening become clear.

Are your entitlements being directly deposited into your bank account? If so, your bank statement(s) would reflect this income. 

Great question—and you're definitely not alone in dealing with these kinds of challenges when leasing commercial space to individual business operators.

Yes, you can and absolutely should screen these tenants, both as business entities and as individuals. In cases like yours—where tenants operate through small companies—it’s important to screen both the business and the person behind the business to get a full picture of risk.

Here’s a best-practice approach:

1. Run a Commercial Credit Report on the Business

• This helps assess the company’s creditworthiness, history of financial responsibility, and any patterns of late payments or defaults.

• If the business has limited credit history (common with smaller or newer companies), you’ll want to lean even more heavily on personal screening.

2. Run a Consumer Credit Report on the Personal Guarantor

• Since you’re likely having them personally guarantee the lease, it’s completely appropriate to pull a standard tenant background check on the individual.

• A personal credit report can reveal recent delinquencies, collections, or financial strain that could carry over into the business.

• Also consider running a criminal background check and a separate Judgments & Liens search—these no longer appear on credit reports but can show past legal or financial disputes, unpaid rent, or damages from prior leases.

3. Use Verified Income Reports Instead of Paper Statements

• Paper bank statements, tax returns, or pay stubs are often forged or manipulated. Look for a screening solution that verifies income directly through bank or payroll data.

• This eliminates guesswork and gives you a much more reliable view of their ability to pay.

You're also right to assume that personal financial behavior often reflects how someone runs their business—especially in sole proprietorships or small LLCs. Combining commercial and individual screening gives you the best shot at avoiding the non-payment and lease-break issues you’ve experienced.

If you’re using a screening service, make sure they support both business and individual checks, and that they include things like verified income and Judgments & Liens, which aren’t always standard.

Hope this helps—you’re on the right track in tightening up your process.