Appfolio Tenant Screening Services: A Landlord's Guide
Tenant screening is arguably the most critical step in the rental process. A bad tenant can lead to lost rent, property damage, legal headaches, and a whole lot of stress. Appfolio, a popular property management software, offers integrated tenant screening services designed to streamline this crucial process. But how effective are they, and what should landlords know before relying on them?
This guide will walk you through Appfolio's tenant screening services, covering everything from the types of reports offered to the cost and potential benefits. We'll also explore some alternative options and best practices to ensure you're finding the best tenants for your properties.
What Tenant Screening Reports Does Appfolio Offer?
Appfolio's tenant screening services are powered by TransUnion, a major credit reporting agency. This partnership allows landlords to access a comprehensive suite of reports directly through the Appfolio platform. Here's a breakdown of the key reports offered:
Credit Report: This report provides a detailed credit history of the applicant, including their credit score, payment history, outstanding debts, and any bankruptcies or liens. A higher credit score generally indicates a lower risk of late payments or default.
Criminal Background Check: This report searches national and state databases for criminal records associated with the applicant. It can reveal past convictions, arrests, and pending charges. This is crucial for ensuring the safety of your property and other tenants.
Eviction History: This report searches for prior eviction filings against the applicant. A history of evictions is a significant red flag, as it suggests a pattern of lease violations or non-payment of rent.
Identity Verification: This service helps verify the applicant's identity by matching their information against public records and databases. This can help prevent fraud and ensure you're dealing with the person they claim to be.
Income Verification (Optional): Appfolio can integrate with Plaid to allow applicants to securely connect their bank accounts and verify their income. This eliminates the need for collecting pay stubs, which can be easily falsified.
The Benefits of Using Appfolio's Integrated Screening
Using Appfolio for tenant screening offers several advantages:
Convenience and Efficiency: The integrated system streamlines the screening process. You can initiate the screening directly from the applicant's profile within Appfolio, eliminating the need to switch between different platforms.
Automation: Appfolio automates many of the steps involved in tenant screening, such as sending screening requests to applicants and retrieving the reports. This saves you time and reduces the risk of errors.
Data Security: Appfolio uses secure data encryption and adheres to industry best practices to protect applicant information.
Compliance: Appfolio helps landlords comply with fair housing laws by providing standardized screening criteria and ensuring that all applicants are treated equally.
Centralized Management: All tenant screening reports are stored within Appfolio, making it easy to access and review them. This helps you maintain organized records and track the progress of your screening process.
How Much Does Appfolio Tenant Screening Cost?
The cost of Appfolio tenant screening varies depending on the specific reports you order and your subscription plan. Generally, you can expect to pay:
- Credit Report: Varies, typically between $15 - $30 per applicant.
- Criminal Background Check: Varies, typically between $10 - $25 per applicant.
- Eviction History: Varies, typically between $5 - $15 per applicant.
Appfolio typically passes the cost of the screening reports directly to the applicant, which is a common practice. However, landlords should be aware of the costs and ensure they are compliant with local laws regarding application fees.
Alternatives to Appfolio Tenant Screening
While Appfolio offers a convenient solution, it's essential to be aware of alternative tenant screening services. Some popular options include:
- RentPrep: Known for its FCRA-certified screeners who manually review reports for accuracy.
- SmartMove (TransUnion): A direct-to-landlord service from TransUnion, offering similar reports to Appfolio.
- LeaseRunner: Offers a variety of screening packages and customizable reports.
- Experian Connect: Provides credit reports and other screening services directly from Experian.
These alternatives may offer different pricing structures, report options, or customer service experiences. It's worth comparing several options to find the best fit for your needs.
Best Practices for Tenant Screening
Regardless of which tenant screening service you use, it's crucial to follow these best practices:
Establish Consistent Screening Criteria: Develop a clear and objective set of criteria for evaluating applicants. This should include factors such as credit score, income, rental history, and criminal background.
Apply the Same Criteria to All Applicants: Ensure that you apply the same screening criteria to all applicants, regardless of their race, religion, national origin, or other protected characteristics. This is essential for complying with fair housing laws.
Obtain Written Consent: Always obtain written consent from the applicant before conducting any tenant screening. This is required by the Fair Credit Reporting Act (FCRA).
Review Reports Carefully: Don't just rely on the credit score or a single data point. Carefully review all aspects of the tenant screening reports to get a complete picture of the applicant's background.
Verify Information: Don't take everything at face value. Verify the information provided by the applicant, such as their employment history and rental history. Call previous landlords and employers to confirm their statements.
Consider the Whole Picture: Tenant screening reports are just one piece of the puzzle. Consider the applicant's overall demeanor, communication skills, and references when making your decision.
Be Transparent: Be transparent with applicants about your screening process and the criteria you use to evaluate them. This can help build trust and avoid misunderstandings.
Adhere to Fair Housing Laws: Always be mindful of fair housing laws and avoid discriminatory practices. Do not ask questions about protected characteristics or make decisions based on discriminatory factors.
Beyond the Reports: The Importance of Landlord References
While credit scores and background checks are valuable, don't underestimate the power of a good landlord reference. Speaking directly with previous landlords can provide invaluable insights into an applicant's behavior as a tenant. Ask about their payment history, adherence to lease terms, communication skills, and overall respect for the property.
Making the Final Decision
Tenant screening is a multi-faceted process. Appfolio's integrated services offer a convenient starting point, but remember to supplement the reports with your own due diligence. By combining comprehensive screening reports with thorough verification and a keen eye for detail, you can significantly increase your chances of finding responsible and reliable tenants who will treat your property with respect.
Ultimately, the goal is to minimize risk and maximize your return on investment. Invest the time and effort in thorough tenant screening, and you'll reap the rewards of a stable and profitable rental property.