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How easy is it to screen a tenant?

By
Services for Real Estate Pros with Rentec Direct Property Management Software

A couple years ago I had this question myself. At that time I visited the local credit reporting office in my town, and while they used to run screens on behalf of landlords have stopped that activity. That is also true of pretty much every local screening company. Property managers can run background screens, but only for their own clients. This leaves the question, how does a private landlord screen their prospective tenants without a huge hassle? I've been asked this dozens of times and I'm happy to say I have the answers.

If you are a landlord, it's actually quite easy. The FCRA allows "tenant screening" as a permissible purpose for running certain background checks, including full criminal background screens, bankruptsy, eviction, and judgement checks. You just need a reliable provider. This can be obtained easy enough by googling 'tenant screening'. Which ones are reliable though?

What I've found is most tenant screening companies are using extremely limited databases. None of them actually disclose what data they are using, or how they got it, or how complete it is. With that, it's more or less just a guess as to if they have valid data. Most tenant screening companies suggest you use one of their packages which include a "nationwide" search of some sorts. I've found these less than accurate as well because their nationwide results tend to only have results if they specifically have already scanned for that particular record. What are the chances? Pretty slim indeed. It often equates to a substantial investment in invalid results. I've even heard that some landlords use multiple screening companies paying two to three times what they should as a result.

Because of the guesswork, and game of chance out there, and since we have lots of landlords using Rentec Direct for it's property management software capabilities, we've worked out a partnership with a premier data screening wholesaler to be able to provide tenant screening services directly to our customers. The quality of the data is second to none.

One might ask, "how is it different than the rest"? Great question! While we offer similar nationwide and statewide searches, most of our nationwide and statewide databases are updated extremely frequently with complete records from that state. This differs from many screening companies. Additionally, and this is a major difference, we offer an intelligent search (Intellisearch) feature which at no cost to you scans the entire previous address history of your prospective tenant. It then recommends the specific local products designed to give you the most accurate results for this tenant. After all, why spend 4 times as much out there on a broad nationwide search when you can learn the specific locations this tenant has lived and run state and county level searches which produce up to date, and flawless results for as little as $6. By the way, our comprehensive nationwide criminal, which includes the nationwide sex offender database, is only $9.95 for Rentec members.

We're currently offering a 2 month FREE trial to Rentec Pro to ActiveRain members which includes a 30% discount on all screening products.

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Nathan is a member of Rentec Direct who provides property management software, tenant ach payment processing, and Rentec credit reports

Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

This is a good service for landlords. What  is the annual membership  fee?

Jun 09, 2009 01:58 AM
Nathan M
Rentec Direct Property Management Software - Grants Pass, OR
President (Rentec Direct)

Hi Gita,

Thanks for your comment.

There is no annual fee for tenant screening.  It's just a pay as you use it service.  Rentec Direct has free (basic) membership, and tenant screening can be ordered whether the basic subscription or the pro subscription is selected.  The pro subscription costs $1 per property monthly ($12 annually with qty discounts available), and provides a 30% discount on tenant screening products.

Jun 09, 2009 03:06 AM
Diego A. Perez
Connecticut Lawn Painting - Wilton, CT

Thanks Nathan, sounds like a good service, i will give it a try. I have found that screening and most importantly a visit to their current apartment make all the difference when selecting tenants.

Jun 12, 2009 12:09 AM
DEBORAH STONE
Balboa Real Estate San Diego, CA - San Diego, CA

Thanks Nathan-

I am really glad I read your blog. I just downloaded RENTEC and it is just what I am looking for. I had been using Quicken Property Management, but I found it too rigid. I also like an internet based program alot more. The best part is being able to do tenant credit screenings which had become next to impossible for our smaller-sized rental division.

It doesn't appear that there is much of a learning curve with your product, it is easy and customizable. Thanks for your comments on AR.

Jul 04, 2009 11:31 AM
Charles Perkins
Charles G. Perkins, CPA - Burien, WA

Wow.  I am a landlord and have had trouble with finding good providers in the past.  I'll be checking into your screening software and the pricing sounds fantastic.

Aug 01, 2009 02:32 PM
Dan Perkins
SmartZip.com - International, IT

You can't put a price on the safety of your kids... I also think that a lot of people would be surprised to know how often their tenants are red flagged in some way or another.  There are offenders of many different demographic backgrounds and to skip this step can be a huge mistake.

Aug 26, 2009 05:20 AM
Anonymous
Muideen
he wasn't going to take a dsieopt.Personally I think that a dsieopt is a good idea for the lower end of the rental market. If I were a landlord renting out in my own particular block, I'd not want to take the risk of tenants trashing the place and having to fund it out of my own pocket.It's surely not that difficult to place a dsieopt with a protection scheme is it?Kind RegardsSharonSharon recently posted..
Jul 23, 2012 05:05 AM
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