Are you feeling like your tenant screening report contains only the bare minimum?
There needs to be more to it than a credit score.
If the information seems to be lacking when it’s time to screen and approve a tenant, here’s why it happens and what you can do about it
Quick Overview:
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Why is Your Tenant Screening Report Incomplete?
Tenant screening is one of the most important steps in protecting your rental property. A thorough report can help you avoid costly problems like late payments, property damage, and drawn-out evictions. With strict California rental laws mandating that you approve the first application that meets your standards, you want to be sure about the tenant you’re placing. You want to be sure about your screening process.
It’s important to understand that there are legitimate reasons why some information may not appear in a basic screening report.
- Not all screening companies pull information from the same databases. Some may rely on national credit bureaus and criminal databases, while others focus more heavily on local or state-level records. If you’re screening tenants through some random service that you found online, there’s no telling where their information is coming from. Maybe they have great access to credit data but they can’t provide national eviction filings. That leaves you wondering if your tenant was evicted in a different state.
- Recent activity may not have been posted yet. Just like with credit card payments, there can be a lag between when something happens and when it’s reported. If your applicant recently moved, changed jobs, or had a legal issue, those updates might not yet be reflected. Your applicant could even be in the process of getting evicted, and the court filing won’t necessarily show up as you’re screening. Recent evictions may not appear. A new address may not be listed. A recently closed account or collection might not show up.
- Everyone keeps records a bit differently. Court systems, employers, and landlords are not required to report everything to centralized databases. Evictions, in particular, can be tricky. If a landlord and tenant settle before a formal judgment, the case may not be recorded in a way that shows up in standard reports.
- Privacy laws may limit what you have access to. Fair Credit Reporting Act (FCRA) rules, state privacy laws, and local restrictions can limit what screening companies are allowed to share.
Your screening process is only as good as the data you’re allowed to gather. If the applicant provided incomplete or incorrect identifying information, like a misspelled name, wrong Social Security number, or old address, the system may miss relevant records.
This isn’t always intentional fraud; typos and outdated info can lead to incomplete results.
What are you using when it’s time to screen tenants? Many screening services offer tiered packages. They show up as basic, standard, premium, etc. If you chose a lower-cost package, it may not include things like eviction history, employment verification, or rental references.
Why an Incomplete Report is a Risk to Your Investment Property
Missing information means you’re making decisions with blind spots. And when it comes to rental properties, blind spots can be expensive. You might not know about rent defaults. Without accurate credit or income data, you could approve someone who can’t afford the rent.
A lack of past landlord references might hide a history of poor maintenance or neglect. You might not know about legal complications, and overlooking prior evictions or criminal convictions could put you and your other tenants at risk.
An incomplete screening report leaves you and your property at risk. Placing a problem tenant because you didn’t have all of the information you needed can cost thousands of dollars in repairs, unpaid rent, and legal fees. The more thorough your screening, the better your odds of avoiding trouble.
Invest in Complete Tenant Screening Reports
Instead of choosing any screening service, consider working with a local property management company to find and place a tenant. You’ll get more than a single-page of background information and a credit score. You’ll receive multiple layers of information that, together, create a fuller picture of your applicant.
Here’s what a complete screening report includes.
- Credit Report and Score
This includes payment histories, credit utilization, and outstanding debts. We will search for any bankruptcies or foreclosures and verify consistency between reported addresses and the rental application.
- Background Checks
We check local, state, and national eviction databases. This includes court records from counties where the applicant has lived. Our search is for both judgments and filings. We conduct sex offender registry searches. We understand what California and local laws allow us to check and what we should avoid.
- Income Verification
Proper screening includes verifying current employer name and contact information. It checks the length of employment and position. We conduct income verification through pay stubs, W-2s, or tax returns.
- Rental History and References
Direct confirmation from past landlords of the rental details is important. We ask about on-time payment histories and we want to know what kind of property condition was found at move-out.
Identity verification is also part of our process. Property managers can cross-check Social Security numbers with an applicant’s name and date of birth. We’ll verify address history over several years.
Steps to Take if Your Report Feels Incomplete
So you’ve reviewed your tenant screening report, and something feels off. Here’s what you can do to fill in the gaps while staying compliant with the law.
Step 1: Confirm the Applicant’s Information
Go back to the rental application and confirm that all identifying details are correct. Typos, missing digits in Social Security numbers, or old addresses can limit the report’s accuracy. If something is missing, ask the applicant to clarify or update the information and re-run the screening with the corrected data.
Step 2: Contact the Screening Company
Call your screening provider and explain what’s missing. Ask which databases they pulled from and whether they include local court and eviction records. If you’re not satisfied, ask if a more comprehensive package is available. If you’re still not getting the data you need, reach out to a property manager.
Step 3: Run Additional Checks
If your initial report was bare-bones, you can add supplemental checks such as manual eviction searches through county court websites. Contact employers and call landlord references.
Step 4: Compare the Application to the Report
Look for inconsistencies between what the applicant provided and what’s in the report. Are there unlisted addresses in the credit history? Does the income match the pay stubs? Are there employers missing from the report?
Any discrepancy is worth clarifying before moving forward.
If this feels overwhelming, a property management company is your best resource. We typically have access to more robust screening tools, and we know how to interpret the data in compliance with state and federal laws.
How to Avoid Incomplete Reports in the Future
While no screening method is 100% perfect, you can take steps to improve your chances of getting a complete, useful report every time.
- Choose a Screening Service with Broad Coverage
Look for companies that pull national credit data, multi-state criminal records, county-level eviction filings, and employment and income verifications. Or, go straight to your property management partner.
- Always Get a Signed Consent Form
Your applicants need to agree to all the background and credit checking. And, with their signature on the application, they’re confirming that the information they’re providing is correct.
- Request Supporting Documents
Ask applicants for recent pay stubs or bank statements, a copy of their government-issued ID, and contact info for current and past landlords.
- Keep all Screening Criteria Standard and Consistent
Create a written policy for what you check and what your minimum requirements are. This ensures fairness and reduces legal risk. Provide this to tenants before they apply for your property, and make sure you screen in order when you’re collecting an application fee, per state laws.
Don’t rush the process. Take the extra day or two to verify everything and make sure the entire process is documented.
An incomplete tenant screening report doesn’t necessarily mean your applicant is hiding something. But, you want to feel like you’ve conducted a fair, objective, and rigorous tenant screening.
Whether it’s a limitation in the screening process, a delay in reporting, or missing information, make sure you’re correcting immediately so you can move forward with an improved system.
Your property is an investment. Protect it by making informed choices, using the most complete screening tools available, and never approving a tenant based on partial information. When it comes to tenant screening, the legal requirements are strict, and it’s easy to make mistakes. You want to be thorough, but you also want to be compliant.
Professional property management is your secret weapon. Not only do you avoid legal risk and liability, you know you’re getting a complete screening report and a well-qualified tenant.
Please contact us at Prestige Real Estate & Property Management. We manage homes in Sonoma County, including Santa Rosa, Windsor, Sebastopol, Petaluma, and Rohnert Park.
