Landlords and property managers say that background checks are the most critical part of screening a tenant, according to a joint survey from RentRedi and BiggerPockets.
The results of the 2,100-respondent survey were paired with a companion survey solely conducted by RentRedi shedding light on how tenant screenings are being conducted and how technology is being used. Polling 700, most say they take a multilayered approach to tenant screening with 88% running a certified tenant screening report.
The survey also found:
- 78% reach out to references;
- 61% review applicants’ social media profiles; and
- 50% use all three methods including screening, references, and social media review.
To confirm results of these screening methods, 91% say they verify applicants’ employment, while 90% confirm income, 84% check references, 82% verify credit scores, and 78% look into rental history.
Additionally, landlords look past finances to lifestyle compatibility as well. A quarter of respondents say they try to gather information on all lifestyle preferences when screening.
These factors include:
- 85% want to know about a tenant’s pets;
- 69% are concerned with smoking habits;
- 40% wanted to understand recreational drug use; and
- 29% wanted to know whether tenants planned to host parties (and how often).
To prequalify prospective tenants, 59% of landlords say they rely on property management software compared with 43% who still screen manually through phone calls, emails, and texts. Only 12% use a third-party property manager, and 3% use a combination of methods, the survey found.
Over two-thirds use software to electronically verify at least some tenant documents like paystubs and bank records, while 25% of respondents still request physical documentation. Notably, 8% admit they do not verify any tenant information, a gap that highlights the continued need for accessible tools and education, RentRedi notes.
