The Gap Investors and Real Estate Agents Have in Screening
Jonathan Ewen - June 10, 2014
When is comes to screening it is not an equal playing field, but why? Many investors don't know that they have a problem until it is time to screen a tenant. What is the issue? Small landlords and real estate agents cannot view credit information without credit bureau approval.
So let's go get approval. First we start with an office location. Do you have an established office location with locking file cabinets, paper shredders, and all of that behind lock and key? If you are like most you do not and are working out of your house.
Let's assume for a second that you do. You are a small to medium sized landlord and have the office it takes so let's move onto requirement number two: 100 units. This is now a set rule, but most bureaus will not even spend the money to send an agent to your office without 100 units under management.
How many property management companies manage over 100 units? Very few. The issue then becomes how do you gain access to the applicants personal data?
The answer: you don't. We all must follow the Federal Fair Credit Reporting Act. Also, credit bureaus are not authorized to release information to anyone who has not gone through compliance. Once you have it, it is a felony to share that information with your owner.
This is where we start looking for as many tools online to get this information to make a good decision. Once we find the software, what is the first thing to do? Go through compliance.
This was a major issue that we dealt with when building websites for property managers. We decided to take a hard look at what data you can view while in compliance and decided to compile that into a report which we call a RentReport. We will get into this in another post.
RentScreener was born out of necessity from our clients needing a solution. With our RentReport you too can now start getting all of the necessary information to make an informed decision about an applicant for your rental property.
Whether you are an investor with one house or a real estate agent that is procuring a property, RentScreener will work for you.