Embracing the Power of Technology for Better Tenant Screening

Landlords have always been up against one primary challenge: Finding high-quality, qualified tenants and getting them into their properties. Tenant screening has always been a foundational piece of this equation. But up until recently, it was a pretty inexact science.

Fast forward to today and technology now allows for powerful tenant screening that’s more efficient and much more accurate. As a landlord, the only challenge now is figuring out which tools and technologies to use. Here’s some of what’s out there:

• Online Rental Applications

Gone are the days of paper applications. Online rental applications are not only more convenient for applicants, but they also allow you to quickly gather and organize tenant information. These platforms often include fields for all the necessary details you need, such as employment history, rental history, and personal references, which are structured in a way that’s easy for you to review and assess quickly.

On their own, these rental applications do a pretty decent job of getting a landlord the information they need. However, when combined with artificial intelligence, it’s possible to set up systems that intuitively flag high-risk tenants and highlight the ones who are the best candidates.

• Automated Background and Credit Checks

Technology enables automated background and credit checks, which are essential parts of the tenant screening process. Through secure online services, you can access a prospective tenant’s credit score, criminal history, past evictions, and other vital data. This automation ensures that you receive comprehensive and accurate reports quickly. As a result, you can make informed decisions without the manual hassle of checking details like this on an individual case-by-case basis.

• Digital Identity Verification Systems

To further ensure the reliability of the information provided, you can use digital identity verification systems. These tools verify the identities of potential tenants by checking official documents like driver’s licenses or passports. This step is crucial in preventing fraud and ensuring that the application information is truthful and accurate. Think of it like “double-checking” your work. It helps spot anything that might have otherwise slipped through the cracks with your other processes.

• Social Media Screening Tools

While traditional background checks can reveal a lot about a tenant’s history, social media screening can offer deeper insights into an individual’s lifestyle and behavior. Certain tech tools are designed to scan social media platforms without violating privacy laws or ethical boundaries. However, it’s important to use this technology judiciously and in compliance with Fair Housing laws to avoid discrimination.

• Property Management Software Integration

Integrating your screening processes with a broader property management software system can streamline your operations even further. These systems can manage applications, screen tenants, and then integrate that data into your day-to-day property management tasks like tracking rent payments and managing maintenance requests. 

Another option is to simply hire a property management company. They’ll almost certainly use some sort of property management software, but will also add their own personal touch. Sometimes it’s nice to know you have a team of real people working with you behind the scenes.

• Online Reference Checks

Technology facilitates faster and more effective reference checks. Instead of calling past landlords or employers, you can use online services to send out reference check requests that respondents can complete at their convenience. This method accelerates the process and provides written documentation of the reference check for your records.

If you do implement an online reference check system, just be prepared for the process to take a bit longer. Naturally, people are less likely to provide a reference when they’re asked via email (versus over the phone). Thus, it usually takes multiple follow-ups. All of this can be automated, but be prepared for a longer timeline.

• Communication Tools

Effective communication is one of the keys to healthy tenant relationships – and this starts with the tenant screening process. Utilizing online communication tools can help maintain clear and documented interactions with potential tenants. Services like email, SMS, and secure messaging within applications can keep communication professional and organized.

Adding it All Up

As you can see, technology has totally changed the way landlords and real estate investors approach tenant screening. Today, the key is to find ways to implement the right technologies in the best possible way. Once you put together the right tech stack and implement a good process, everything else will fall into place.