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.

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