
In a recent TransUnion SmartMove survey of 689 independent landlords from across the U.S., 61% of respondents said it was more profitable and more attractive to be an owner this year than it was five years ago. Eighty percent reported it was less difficult or required about the same level of effort to find qualified renters now than it was a year ago, and 60% said that renter turnover is falling and tenants are remaining in their units longer.
An overwhelming majority of respondents, 90%, said that they perform credit and criminal background checks on potential renters using tenant-screening services. Eighty-five percent also review prospective tenants’ previous eviction reports and use this information to determine whether to accept them as renters. Almost all respondents who have used tenant screening reported that these services allow them to rent to higher-quality tenants.
“Our survey clearly shows it is a landlord’s market, as the number of renters rises and these renters are remaining in units longer. As a result, landlords are using sophisticated tools and screening solutions to evaluate potential long-term renters with greater certainty,” said Jason Norton, vice president of TransUnion SmartMove, in a statement. “In the last year alone, TransUnion SmartMove has seen a 29% increase in the total number of applications.”
Of the 10% of landlords who don't screen potential residents, 39% said they approve applicants when they see “no red flags," 36% said they “trusted their gut,” and 21% were unaware of applicant-screening services.
“Landlords ranked eviction history as one of the most [worrisome] items on a rental applicant’s history, but not all landlords are using eviction reports,” said Norton. “To make smarter decisions about applicants, landlords should review eviction reports for every renter. In addition, rental fraud is an increasingly prevalent problem in the industry, and landlords can no longer trust their instincts to select trustworthy and reliable residents.”