Best Tenant Screening Services

Searching for an experienced partner to manage your rental property? Palmetto State Properties is known for their ability to manage, market and maintain rental properties in the greater Charleston, SC area. Contact us today.

Why Use a Screening Service?

There is a lot at stake for landlords when deciding which potential tenants to rent to. The longer a rental unit is vacant, the worse the financial impact. But a hasty, poorly informed decision can lead to renting to a tenant who causes damage to the property or is unable or unwilling to pay the rent on time. In most states, a landlord’s only recourse in such cases is a formal eviction process that can take months and cost a lot of money due to lost rent, legal fees, and court costs.

Some landlords may have the time, knowledge, and objectivity to do their own tenant screening. But many do not and prefer to outsource the job to a professional tenant screening service. Or better yet, a Property Management Company like Palmetto State Properties that can take on the complicated roles of property management. Read on to learn the best tenant screening service available for you.

Why Work with Palmetto State Properties?

We screen our potential tenants thoroughly without charging the property owner a fee per background check. While most reports will provide you with a rough background report, including credit history and criminal record, we have the knowledge and wisdom to recognize how to apply the report and where you need to know more. A W2 form, for example, is accepted by many as proof of employment as part of the tenant screening process. A W2 will only tell you where a tenant used to work; it will not tell you if they are now employed. Lacking that knowledge is the difference between losing a lot of money and gaining a great tenant with the means to pay their rent.

But even better, we don’t stop there. Our services are designed to meet all of your needs as a property owner. We not only conduct credit, background, and reference checks on all applicants–we supervise tenant move-outs and replacements, as well as the negotiation, execution, and enforcement of leases, community regulations, and owner needs. Read more about our services here.

What Do Screening Services Provide?

Tenant screening services typically provide their clients with a report that includes specific types of information a landlord needs or wants to use as the basis for approving or denying a potential tenant’s rental application. Some services offer comprehensive packages for a set price. Others offer different pricing tiers based on the particular checks selected by the landlord. These extra fees can add up quickly, but this service is ideal for an incredibly experienced property owner or one who is trying to cut overall costs by handling the process by themselves.

The background checks available through tenant screening services typically include:

• – Rental and eviction history
• – Credit check and income verification
• – Criminal convictions
• – Utility payment records and debt history

Be aware that some states prohibit rejecting a potential tenant based on certain aspects of the applicant’s background. For example, in New Jersey and Florida, it’s illegal to deny housing to anyone based on their criminal record.

Also note that criminal record checks are typically conducted through databases maintained by state police and may include charges that were dismissed and other information that should have been expunged. Some tenant screening services also check tenants through the Office of Foreign Assets Control, which maintains records on criminal activities that may cross international borders, such as terrorism, drug trafficking, human trafficking, and money laundering. An experienced Property Management Service like ours will find the right information and make an educated recommendation.

How Do Screening Services Select Prospective Tenants

It is not always clear from tenant screening services whether a landlord should approve or deny a rental application. Some services will offer an opinion on whether to accept or reject a tenant or whether to demand a larger security deposit, however, this may be a blanket decision. For example, one problem that can occur with a service like this is a rent application from a non-resident or non-US citizen. As a result of lacking a social security number, a screening service can automatically reject them. This might be a mistake. The individual could be an affluent, well-respected foreign national who would make a trustworthy tenant.

Here is where a skilled Property Management Company’s expertise may help. A business like ours can explain the rationale behind these choices and assist you in making a comfortable selection.

It’s also important to note that the Fair Housing Act of 1968 and amendments passed in 1988 prohibit discrimination against applicants for rental housing on the basis of race or color, religion, national origin, family status, or age. There may also be state or local laws governing the information that landlords can obtain or use in screening potential tenants. So regardless of what information you gather from a tenant screening service, it’s up to you to know whether and how you may use it in making a decision. If you lack the experience to do this, working with a Property Management Company instead is a smart choice.

Additional Tools and Services

Some tenant screening services handle other aspects of tenant management, such as the electronic storage of lease applications and lease agreements. Some landlords appreciate the convenience of keeping all these documents in one storage location and allowing tenants to sign documents digitally, particularly when those tenants will be moving from another part of the country.

How Do Tenant Screening Services Charge Landlords?

Screening services typically charge landlords for their services in one of two ways: per report or monthly. Per report fees vary based on what information a landlord requests. For example, some landlords want a full credit report on each applicant, which will cost more than a credit score without the full credit history. Depending on the content, tenant screening reports typically cost somewhere between $10 and $40 per report.

Landlords with higher turnover rates or many rental units may prefer to pay a flat monthly fee that covers all reports generated during the month, rather than pay on a per-report basis.

Which Are the Best Tenant Screening Services?

The best tenant screening services offer the following. (At Palmetto State Properties, we offer this and more to ensure your property is profitable and your tenants are happy.):

• – A variety of background checks
• – Reasonable fees or, as an included cost
• – Quick report delivery (ideally, within minutes)
• – Fair Credit Reporting Act (FCRA) compliance
• – Easy to reach customer support (not a chatbot) for landlords

Based on multiple reviews and comparisons of tenant screening-only services, the following companies are generally included in the top recommendations:

• – Avail
• – BetterNOI
• – E-Renter
• – First Advantage
• – LeaseRunner
• – MyRental
• – National Tenant Network
• – RealPage
• – RentPrep
• – RentRedi
• – RentSpree
• – SmartMove
• – TurboTenant
• – VeriFirst

This list is a good starting point, but you’ll need to do your own due diligence research in choosing the one that best meets your specific needs as a landlord. If you’d rather work with a Property Management Company who can take care of a vast range of your needs, including reliable tenant screenings and the knowledge of how to put them into practice, get in touch today to find out how we can help.