Guide to Choosing the Best Tenant Screening Service 2017 (Part 3)

When choosing the best tenant screening service, agents and landlords need to consider the ease of use for both the applicants and themselves.

In the previous 2 posts we looked at the information provided in the reports and how important it is to have comprehensive reports but not an overwhelming amount of data that can cause analysis paralysis. But, applicants that have difficulty completing an application will bail and the landlord will then get no data and possibly no applicant.

According to industry research https://www.crazyegg.com/blog/why-users-leave-a-website/ one of the top three reasons users leave a web site is when they don’t know what to do.

TenantMagic has designed an application that captures all of the information required for a comprehensive application that can be completed in less than 10 minutes. We fully realize that most people don’t read and designed the process with the minimal amount of text instructions.

Over the past 4 years we have listened to users that have called in with difficulties when completing our application. We often made changes to the application process based on their input. Today our application process is far more efficient than it was when we started and we still listen to our users’ suggestions. We feel this is a main reason why TenantMagic is the best tenant screening service.

There are times when users are challenged by technology and are intimidated by any online experience. In those cases a TenantMagic customer service representative can take their information over the phone. Another reason why TenantMagic is the best tenant screening service.

We have also worked diligently to make sure the application process is easy for agents and landlords. All an agent or owner needs to to is enter the email address of the applicant into the system and TenantMagic does the rest, including handling all customer service for the applicant during the application process.

Guide to Choosing the Best Tenant Screening Service 2017 (Part 2)

In my last post, Guide to Choosing the Best Tenant Screening Service 2017         (Part 1) I wrote about  “what makes TenantMagic better than the rest of the tenant screening companies out there?”  That post looked at the importance of having comprehensive screenings to make a qualified decision when considering rental applicants.

In this post I want to look at the other end of the spectrum, screening reports that have volumes of data and analytics.

A business acquaintance of mine has a real estate agent service platform and recently contacted me regarding a competitor that offers a similar application and screening program. They approached him to explore potential partnering opportunities. My acquaintance asked me what I thought of the company.

Their web site had a good clean design and did a nice job of presenting their program. The 5-minute video on the home page spent a lot of time talking about using artificial intelligence for their reporting analytics.

I then looked at their sample reports and was overwhelmed by the number of analytics and charts. A lot of the data was nice to know but really did not add much to the overall decision making process. From my perspective, it would lead to analysis paralysis. Here is a good article that describes analysis paralysis in decision making. https://personalexcellence.co/blog/analysis-paralysis/

I base this observation on the calls I receive from both agents and landlords users of TenantMagic. We have made every effort to make our reports as easy to read and review as possible. Over the years we have made changes from the input we have received from our users. In spite of all of these efforts we do get users that need assistance. We do provide written instructions and have short explainer videos but some still need to be walked through the process the first time.

TenantMagic users want both comprehensive information and the ability to quickly evaluate it. We work very hard to maintain that balance to make sure agents and owners select TenantMagic when choosing the best tenant screening service. After all they are using our service to save time and overwhelming them with data is counterproductive.

When choosing the best tenant screening service, agents and landlords need to consider how well the tenant screening provider understands their information and time requirements. TenantMagic understands those requirements by listening to our users.

Guide to Choosing the Best Tenant Screening Services 2017 (Part 1)

Choosing the best tenant screening service
How to choose the best tenant screening service

One question we frequently get at TenantMagic is “what makes TenantMagic better than the rest of the tenant screening companies out there?” With so many different tenant screening companies, we understand that looking for the best screening service might be difficult.  For that reason, we decided to give you our guide on choosing the best tenant screening companies. Today’s post we will look at the importance of comprehensive screenings.

Comprehensive screenings

One important aspect of tenant screening is gathering all relevant information about the tenant. I have spoken to many landlords and agents that use a credit report to qualify a tenant and sometimes they accept a credit report provided by the applicant.

There are 2 reasons why this is bad.

  1. Credit reports give you part of the picture. Eviction reports and criminal reports ore very important to properly evaluate a potential tenant.
  2. As I have written in a previous post, fake credit reports can be purchased on-line. Here is a site that blatantly promotes them. https://fake-credit-score.pdffiller.com/

Many services offer combinations of credit reports, criminal reports, and eviction reports, and others offer credit and criminal reports, with eviction reports as an additional add-on cost. TenantMagic includes eviction reports in the screening report giving owners and agent comprehensive information to make a highly informed decision.

TenantMagic goes one step further after the owner or agent receives the reports.  There are instances when the criminal received from the courts require further explanation. TenantMagic will conduct additional research on criminal reports if further clarification is required.

Additionally, eviction courts do not use social security numbers. This can result in false positives with common names. The TenantMagic program resolves false positives by comparing addresses where the applicant was known to live as reported by the credit bureaus with the addresses where a person with that name was evicted. If there is a match, then we know it was the applicant that was evicted.

In future posts regarding Choosing the Best Tenant Screening Services, I will discuss customer service and ease of use for both the owner/agent and the applicant.

 

How Great Customer Service Impacts Your Business

Great customer service
Excellent customer service directly impacts your business

In my last 2 posts I wrote about the importance of customer service for tenant screening providers and how TenantMagic uses customer service to create a competitive advantage.

Since that post we noticed a spike in registrations that still continues. I originally attributed it to our blogs and marketing efforts. This was only was only partially correct.

Fortunately, a number of the new registrants called in for additional information. They were from all over the country and I asked them how they heard about TenantMagic. Most of them told me that they heard of us from recommendations on Trulia’s www.trulia.com website forum discussing the “Best website to use for tenant screening.”

Below are 2 comments that mention TenantMagic’s customer service.

“TenantMagic. TenantMagic. Easiest, simplest, most effective way to screen my applicants. I’ve been doing rentals for 28 years and I have never had an easier and better way to screen than TenantMagic. If you are ever looking for a tenant screening service that is free to the user, that is easy with immediate results, that provides everything you would want like criminal, eviction, credit, sex offender, etc, then switch to TenantMagic.
http://www.tenantmagic.net is the best I’ve come across. I spoke immediately with the owner who assisted me and my applicants right away.
No cost. Simple to use. Better than e-renter, cozy, my rental, etc. 10/10.”

“Rentprep is a very good service, but I actually was not satisfied with how much time it took to get my application. They say that it is because they are doing the applications by hand and reviewing them, which I believe.
But I switched to a company called TenantMagic http://www.tenantmagic.net and have received the same application review services checking for any mistakes, false positives, etc, and found that it is much cheaper than rent prep, and much better. I spoke with owner right away, he was very helpful. I agree with above comments that tenant background is terrible, and my rental is also not a great service. I’ve tried 3-4 services and nothing compared to customer service and speed of TenantMagic.”

You can check out the actual comments and thread at – https://www.trulia.com/voices/Property_QandA/Best_website_to_use_for_tenant_screening_-641199

It is really satisfying to implement a strategy and see how it directly impacts your business. One of my favorite sayings is “ It is simple but not easy.” And that surely applies to establishing a customer service strategy that works.

Tenant Screening Customer Service – The TenantMagic Advantage

Let your business stand out with superior customer service

 

In my previous post I wrote about how TenantMagic stands above its competitors by providing superior tenant screening customer service. Here is a link to a Forbes article http://bit.ly/2sTWAD1 that supports our strategy, that customer service is a great differentiator.

In this post I will give you a recent example.

TenantMagic’s tenant screening customer service is available 7 days a week. We know that our agents and landlords don’t work Monday through Friday from 9am to 5pm and neither do we. We see much of our activity after 5pm and on weekends. One of our competitors brags about having their customer service available Monday through Friday from 8:00 am to 7:00 pm. TenantMagic’s live phone customer service is available from 8:00 am to 9:00pm Monday through Friday and 9:00 am to 5:00 pm on Saturdays and Sundays.

This past Saturday, I received a call from a woman in her 70’s who needed help to complete the online rental application and tenant screening for her and her husband.  Neither were what you would call computer savvy.

She called asking for assistance, as she was somewhat unsure about entering personal information into an online application. She asked if we could stay on the with her while she entered her information which we did not only for her, but for her husband too.

In less than a half hour both applications were completed and the agent received their applications and screening reports.  They were very thankful not only for the assistance, but that it was provided on a Saturday morning. The property they were applying to was in demand and they needed to get their application in as quickly as possible.

TenantMagic’s development team has worked with our customer service team to make the user experience as easy as possible. We see that we are successful more than 95% of the time based on the number of customer service calls we receive compared to the number of applications that are completed.

We often hear back from the agents and landlords of the 5% that needed the assistance, thanking us. They appreciate that their vacancy will be filled in a timely manner. This has resulted not only in repeat business but great referrals.

 

 

Tenant Screening Services – Why TenantMagic Works Best

Tenant Screening Services - Why TenantMagic works best
Uses TenantMagic Tenant Screening Services

The TenantMagic staff  conducted a competitive analysis of tenant screening services providers to see how TenantMagic compares. We found many services that offer the same type of reports – credit, criminal, eviction, and sex offender. We then took a further dive to see how TenantMagic was different.

The tenant screening services we selected offered similar reports. We excluded companies that only provided credit reports and enterprise property management systems that had tenant screening as a part of a suite of services.

Overall, we found that the other tenant screening services focused strictly on the reports, where TenantMagic handles the entire application and screening process along with providing customer service to the applicants every step along the way.

We interviewed dozens of real estate agents and landlords when we were developing TenantMagic five years ago. The time it took to get prospects through the application process was the one pain that was consistently articulated by both agent and landlords.

It starts with the handling the calls and setting up appointments. Then there is the time it takes to collect the completed applications (usually paper), application fees, run a background report and make a selection.

The biggest headaches came from applicants that were:

  • No shows
  • Just looking
  • Went through the application process but didn’t meet basic income qualifications

If a background report was used by the agent and landlord it usually consisted of a credit report, which alone is not sufficient to determine the quality of a potential renter.

What we found was that TenantMagic is the only tenant screening program that addresses the entire application process from the inquiry to providing the notification to applicants that were both accepted or declined.

The agent or landlord simply enters the applicant’s email into the system and TenantMagic handles the rest. This includes all customer service during the application process for the applicant. If there is a problem, the applicant is instructed to contact TenantMagic, not the agent or landlord.

The agent or landlord gets a completed application with the screening reports and a rental recommendation based on income and credit history requirements. The completed application and  reports are available minutes after being submitted by the applicant.

As an added benefit, TenantMagic is free to agents and landlords. The applicant pays the fee.

By using TenantMagic,  agents and  landlords can stop wasting time with unqualified rental applicants and focus on their primary business. And that is why TenantMagic is the tenant screening service that works best for not only agents and landlords but applicants too.

Successfully Dealing With a Late-paying Tenant Without an Eviction

No late rental payments
No late rental payments

I was speaking with a landlord recently about getting good tenants and what to do with  late-paying tenants while avoiding the eviction process. Jack has been in the business for close to 20 years and has a couple of dozen properties.

He explained his very effective method to deal with late paying tenants.

After conducting the background screening but before the lease is signed, Jack sits down with the applicant and clearly reviews the rules regarding rent payment.

They are-

1. Rent is due on the 1st

2. If the payment is not received by the 1st of the month there is a $50 late payment.

3. If the rent and late payment is not received by the 3rd of the month they  will a receive a 3-Day Notice.

4. There are no exceptions.

A 3-day notice advises tenants that they are being asked to leave or that an eviction action will be brought against them. They are also advised to seek legal assistance if they have any questions or concerns. (This landlord’s properties are in Ohio and laws do vary from state to state, so please check with your attorney or state’s landlord tenant laws) You can also check out https://www.rocketlawyer.com to see a sample and learn more.

Once the 3-day notice is delivered, he calls the tenant and tells them, “You are more than 3 days late with your rent and I want you out as I warned you about this before you signed the lease.”

Jack then makes the tenant the following offer, “If you are out by the week-end I will pay you $250. If you agree I will meet you at the property with your check. If the property is clean and in good shape, I will give you the check in exchange for the keys. If you do not agree, I will immediately start the eviction proceedings.”

Over the years, he had only one tenant that declined this offer.

He knows his ex-tenant is probably at a bar buying drinks with his new-found money bragging about getting over on his landlord. But Jack is the one that has come out ahead.

Jack has avoided paying the costs associated with filing the eviction. The property was left clean and in good condition, which would be very unlikely if the tenant was evicted. And he has the security deposit, which covers the cost of the payment and some of the lost rent.

Jack spends very little time chasing down the rent from late-paying tenants by being very clear about the rules before the lease is signed and strictly adhering to them.

TenantMagic provides comprehensive application and tenant screening at no cost to real estate agents, property managers and landlords. Applicants pay the fee

Jay Apple is co-founder of TenantMagic, LLC  www.tenantmagic.net

Please note that this post relates to an approach to dealing with late paying tenants and is not meant to be considered legal advice.

Credit Report Criteria Changes Affecting Real Estate Agents and Landlords

 

credit reports, tenant screening
Changes to credit reporting criteria impacting real estate agents and landlords

Effective July, 1 2017 there are going to be changes regarding credit report criteria.  They were announced by the  National Consumer Assistance Plan last year.

The changes now take data accuracy and quality into consideration and specifically address-

  • Medical debts won’t be reported until after a 180-day “waiting period” to allow insurance payments to be applied. The CRAs will also remove from credit reports previously reported medical collections that have been or are being paid by insurance.
  • Consistent standards will be reinforced by the credit bureaus to lenders and others that submit data for inclusion in a credit report (data furnishers).
  • Data furnishers will be prohibited from reporting authorized users without a date of birth and the CRAs will reject data that does not comply with this requirement.
  • The CRAs will eliminate the reporting of debts that did not arise from a contract or agreement by the consumer to pay, such as traffic tickets or fines.
  • A multi-company working group of the nationwide consumer credit reporting companies has been formed to regularly review and help ensure consistency and uniformity in the data submitted by data furnishers for inclusion in a consumer’s credit report.

Recently there have been a number of articles and announcements about these changes. What landlords and real estate agents using credit reports as part of their tenant screening need to know is that there should be only a minimal impact. And those changes should help clarify some information you are getting in your reports.

The new policy will require any record reported to a credit bureau to contain a name, social security number and/or birthdate, as well as an address. Tax liens and civil debt reports will likely be most impacted as SSNs are not included as a security precaution.

The accuracy of the reporting should be improved by matching records. As a result, reports with false positives should be reduced.

As I have mentioned in other postings, a credit report alone is not sufficient to adequately assess a rental applicant. Agents and landlords also need eviction and criminal reports. When you combine the three you get a much more robust view to make an informed decision.

TenantMagic provides comprehensive application and tenant screening at no cost to real estate agents, property managers and landlords. Applicants pay the fee.

Jay Apple is co-founder of TenantMagic, LLC  www.tenantmagic.net

Are your rental applicants using fake pay stubs?

Are your applicants using fake pay stubs?
Fake pay stubs are easy to get

In a previous post, I discussed the ease of getting a fake credit report and why you should always run your own screening reports for rental applicants. Credit reports are not the only fake documents that are readily available online. Fake pay stubs are also easily available for under $10.00.

https://www.realcheckstubs.com and https://fakepaystubonline.com are just 2 of many services that can be used.

It only takes a few minutes to generate a fake pay stub and they can look very authentic. If the rent is $1200 per month and you require a 3-1 income to rent ratio, no problem. The applicant can simply generate pay stubs showing income of $3600 per month or more regardless of what they make.

Income is obviously one of the more important requirements when considering a tenant. Lack of sufficient income will typically result non-payment of rent and ultimately in an eviction.

Fortunately there are a number of steps you can take to verify an applicant’s pay stub information.

  • Take a close look at the deduction amounts. Calculate them to see if they make sense and are in-line with the state where they work. City and state tax rates are readily accessible on line.
  • Ask for bank statements that correspond with the dates of the paystubs to see that the money was actually deposited into their account.
  • Look at eviction and credit reports to see if there are any anomalies.

Some resources suggest contacting employers to verify the income. I do not recommend this, as many employers will not provide that information. Some larger corporations that do, will outsource the service to a third party which can charge up to $25. With the steps I outlined you should be able to get verified income without the significant time and effort required to contact the employer.

The best way to incorporate these steps into your application process is to use a online rental application and background screening program. An applicant completing a TenantMagic application give permission for the agent or owner to ask for information such as bank statements in addition to the credit, eviction and criminal information pulled from the bureaus.

TenantMagic www.tenantmagic.net comprehensive application and tenant screening at no cost to offers real estate agents, property managers and landlords. Applicants pay the fee.

Jay Apple is co-founder of TenantMagic, LLC  www.tenantmagic.net

Technology-relevant lead generation for property managers and landlords

Use technology-relevant lead generation
Millennials hate voice mail

Technology-relevant lead generation is so important to effectively market your properties, especially to millennials.

Many owners and property managers I speak with are always looking for a reliable source for rental applicants.

A significant number of these applicants will likely be millennials. According to a cnbc article  http://www.cnbc.com/2016/09/09/millennials-will-be-renting-for-a-lot-longer.html, over 60% of people in the 25 to 34 age group, are renting their residences.

In addition to listing on sites such as  Craigslist or Zillow, many owners or managers place a “For Rent” sign out with a phone number of the owner or property manager.

“For Rent” signs will typically attract potential applicants that have a greater interest,  as they are making the effort to check out the property and the neighborhood.

The problem with the “For Rent” signs is that the phone is the method of contact. This brings up a number of issues.

Potential applicants often look at properties during evenings and week-ends when rental offices are closed and owners are not always available. Many applicants, especially millennials,  are adverse to calling and even a larger number refuse to leave a message. If they do leave a message (which is unlikely)  and you call them back, don’t even think of leaving them a voice message.

Millennials hate voicemails. They don’t like leaving voicemails and will typically send a text message instead. They also often avoid listening to voicemails that have been left for them by others. Here is a great column giving a millennial’s perspective on voicemails.

http://www.baltimoresun.com/entertainment/bthesite/bs-b-0618-column-20150617-story.html

So, what is the best way to use “For Rent” signs? Use a text lead generation program for the signs. This is a good example of technology-relevant lead generation.

Full disclosure – TenantMagic has launched Rider Sign Leads www.ridersignleads.com. The program provides property managers and owners with a customizable code that can be placed on the “For Rent” sign riders, either in addition to or  replacing the phone number. When the prospective applicant texts the code to the number on the sign, they receive the rental details, owner/manager contact information and a link to the web listing of the property. The owner/manager receives the phone number of the prospect.

Technology is changing the way we shop, live and make decisions. It is imperative to make sure that your business can accommodate the tech tools that are being used by your target market.

Jay Apple is co-founder of TenantMagic, LLC  www.tenantmagic.net