How to Use Online Platforms to Screen Tenants: A Practical Overview
property-management-best-practices

How to Use Online Platforms to Screen Tenants: A Practical Overview

Zac Maurais
Zac Maurais
8 minutes

Screening tenants is easier, faster, and more reliable with online platforms. These tools help property managers reduce risks like evictions, which can cost $2,500–$3,500, by offering detailed insights into applicants’ financial and rental histories for $30–$75 per screening. Here's what you need to know:

  • Key Features:
    • Credit and background checks
    • Income verification
    • Compliance with Fair Credit Reporting Act (FCRA)
    • Fast results (often within minutes)
    • Secure data handling
  • Top Platforms:
    • Avail: $0 (tenant pays), full screening tools
    • Zillow Rentals: $35 (tenant pays), simple application system
    • TurboTenant: $45–$55 (tenant pays), includes accounting tools
    • RentPrep: $21–$40, bulk pricing available
  • Best Practices:
    • Set clear screening criteria (e.g., income 3× rent, credit score minimum)
    • Protect tenant data with encryption and secure storage
    • Follow Fair Housing laws to ensure compliance

7 Best Tenant Screening Services

Online Screening Platform Basics

Online screening platforms have changed how property managers evaluate tenants. Handling over 75 million screenings each year, these tools provide detailed background checks, making tenant selection more efficient. This guide highlights the key features and benefits of using these platforms to simplify your process.

Key Features of Screening Platforms

The best platforms offer a mix of tools to help property managers make informed decisions. According to research by TransUnion, 84% of landlords focus on verifying a tenant's ability to pay rent, which makes income verification a critical component [3].

Here are some important features:

  • Credit Report Analysis: Provides a clear look at an applicant's financial history.
  • Criminal Background Checks: Ensures thorough background verification.
  • Income Verification: Confirms employment and salary details.
  • Encryption and Access Controls: Secures sensitive applicant data.
  • Digital Applications: Simplifies the submission process for tenant documents.
  • Real-Time Results: Delivers screening reports quickly.

Top U.S. Screening Platforms

There are several trusted platforms available, each with its own strengths. Here's a quick comparison of some popular options:

Platform

Cost Structure

Key Features

Rating

Avail

$0 (tenant pays)

Full screening and property management tools

4.8

Zillow Rentals

$35 (tenant pays)

Easy-to-use application system

4.5

TurboTenant

$45–$55 (tenant pays)

Includes rental accounting features

4.3

RentPrep

$21–$40

Bulk pricing options available

4.0

"Azibo makes tenant screening a breeze, especially with the flexibility to charge fees to tenants or pay myself. The integration with other property management tools is a game changer." - Andrew Winter [1]

Following Screening Laws

Staying compliant with legal requirements is essential when using online screening platforms. Trusted platforms follow the Fair Credit Reporting Act (FCRA), which regulates how consumer data is handled. Property managers should ensure their platform:

  • Complies with FCRA guidelines.
  • Provides clear disclosure forms for applicants.
  • Safeguards sensitive data with secure storage.
  • Offers tools for issuing adverse action notices.
  • Supports state-specific screening regulations.

These legal protections ensure that digital screening remains both efficient and compliant, helping you manage tenant checks responsibly.

How to Screen Tenants Online

Streamline your tenant screening process by leveraging online tools and platforms. Here's how you can efficiently handle each step.

Choosing and Setting Up Your Platform

Pick an online screening platform that aligns with your property management needs. Here are two popular options:

  • MyRental: Offers flexible pricing:
    • Basic package: $24.99 per applicant
    • Premium package: $37.99 per applicant (cost can be passed to the tenant)
    • Free rental application option [4]
  • RentPrep: Provides reliable reports starting at $21, offering a budget-friendly option without sacrificing quality [5].

To get started with your chosen platform:

  1. Create and verify your landlord account.
  2. Enter property details, including rent, deposit, and policy information.
  3. Set up screening criteria, such as minimum credit score, income requirements (commonly 3× monthly rent), criminal background checks, and rental history.

Once your platform is ready, you can move on to gathering tenant documents.

Getting Tenant Documents

Collecting tenant documents is a crucial step in securing accurate applicant information. Platforms like TurboTenant integrate with Stripe and Plaid to ensure financial data is handled securely.

Key documents to request include:

  • A government-issued photo ID.
  • Proof of income (e.g., W-2s, pay stubs, or bank statements).
  • Contact details for previous landlords.
  • Employment verification information.
  • Signed consent forms for background checks.

"MyRental™ offers online tenant screening solutions designed for independent rental owners, real estate agents, and property managers to facilitate informed and confident leasing decisions." [4]

Reading Screening Reports

After gathering documents, the next step is to carefully review screening reports. Pay attention to critical metrics and warning signs. Did you know 93.3% of property owners and managers reported encountering fraud in tenant applications last year? [6]

Here are some useful credit score benchmarks to guide your decisions:

  • Good range: 670–739
  • Average renter score: 649
  • Recommended minimum: 638 (according to Experian)
  • Average for young adults (20–29): 662

Issue

Action

Unverifiable income

Contact the employer directly.

Multiple residences

Review address history.

Incomplete applications

Request the missing information.

Missing credit report pages

Order a new report.

Discrepancies in screening

Cross-check with other documents.

Set clear and consistent screening criteria, and always keep detailed records of your decisions to comply with fair housing laws. For added diligence, verify rental history by reaching out to previous landlords and recording their feedback in your property management system.

sbb-itb-9817144

Screening Best Practices

Setting Clear Requirements

Having clear, standardized criteria helps ensure a fair process for both landlords and tenants while reducing the risk of fines (ranging from $16,000 to $65,000) [7]. These criteria can easily integrate with digital screening tools.

Key screening criteria include:

  • Income Requirements: Typically, applicants should earn at least 3× the monthly rent.
  • Credit Score Thresholds: Define the minimum acceptable credit score.
  • Employment Verification: Confirm current employment status.
  • Rental History: Check references from previous landlords.
  • Background Check Parameters: Outline guidelines for reviewing criminal history.
  • Additional Policies: Include pet rules, smoking restrictions, and occupancy limits.

"One of the main benefits of listing rental criteria for screening is to create a tangible judging system for potential tenants so you don't find yourself basing your decision on a gut feeling." – RentSafe [7]

After establishing these criteria, the next priority is securing sensitive applicant information.

Protecting Tenant Data

Screening platforms must comply with FCRA standards to safeguard applicant data [1]. Implement the following security measures:

Security Measure

Implementation Strategy

Data Security

Encrypt data during transit and storage

Access Control

Limit access to authorized personnel only

Regular Updates

Keep software and security protocols up to date

Document Disposal

Properly dispose of physical and digital files

Additional features to ensure data protection include:

  • Encrypted Communication: Securely share screening results.
  • Secure Document Storage: Safely maintain applicant records.
  • Access Tracking: Monitor who views sensitive information.
  • Automated Deletion: Remove outdated data automatically.

With data security in place, it's important to communicate screening outcomes clearly and professionally.

Sharing Results with Applicants

Provide applicants with transparent and professional feedback by following these steps:

  1. Apply consistent screening criteria to all applicants and document the process.
  2. Offer clear, compliant explanations for screening decisions.
  3. Adhere to fair housing laws to ensure legal compliance.
  4. Use pre-screening questions to gauge basic qualifications, such as income, rental history, and reasons for moving [8].

Solving Common Screening Problems

Fixing Report Errors

Errors in screening reports can disrupt the accuracy of your tenant evaluations. Common issues include mixed files (data from different individuals being merged), incomplete information, and outdated records [9]. Here's how to address these problems:

Error Type

Resolution Steps

Timeline

Mixed Files

Investigate the issue with the screening company

30 days

Outdated Information

Submit updated documentation to the screening company

30–45 days

Incorrect Payment History

Contact the creditor for verification

Varies by creditor

Court Record Errors

File a correction request with the appropriate court

Case-dependent

When an error is identified, property managers should provide tenants with the screening company's contact details, a written notice of adverse action, and instructions on how to dispute inaccuracies [9].

Once corrections are made, ensure your screening practices align with Fair Housing standards to avoid further complications.

Following Fair Housing Rules

Compliance with Fair Housing regulations is non-negotiable. Property managers should create clear, written criteria that focus on a tenant's ability to meet lease obligations [12]. This usually involves verifying income, credit history, rental references, and employment status. However, avoid inquiries about personal characteristics like national origin, marital status, sexual orientation, or disability [13]. Applying these standards consistently ensures fair treatment for all applicants.

Managing Tenant Disputes

Handling tenant disputes requires a fair and organized approach. According to the Consumer Financial Protection Bureau, screening report errors should never block qualified tenants from securing housing [10].

Steps for Resolving Disputes:

  • Initial Response:
    Provide tenants with:
    • A free copy of the screening report (if requested within 60 days)
    • A written explanation of any adverse actions
    • Contact information for the reporting agency [11]
  • Investigation Process:
    Require the screening company to:
    • Investigate and resolve inaccuracies within 30 days
    • Correct or remove errors
    • Notify all involved parties of the results [11]
  • Documentation:
    Keep records of:
    • All correspondence related to the dispute
    • Investigation findings and any corrective actions

For more complex disputes, consult local legal experts or fair housing organizations [11]. Managing disputes efficiently builds trust and ensures transparency in your screening process.

Conclusion

Online tenant screening platforms have made property management easier and more effective by providing tools to evaluate potential tenants quickly and accurately. These systems offer a range of insights - from credit checks and criminal background reports to eviction histories - helping property managers make well-informed decisions while staying compliant with regulations.

Here are some standout features of these tools:

  • Quick turnaround: Reports delivered in as little as 1 hour [1].
  • Wide data coverage: Access to records for 85% of the U.S. population [1].
  • Affordable pricing: Screening fees starting at $39.99 [1].
  • Income verification: Confirms applicants earn three times the monthly rent [2].

These platforms simplify tenant selection by offering detailed data to reduce risks and improve decision-making. By using clear screening criteria and embracing these digital tools, property managers can create a fair and efficient process while ensuring compliance with housing laws.

See how Utility Profit works in 1 minute

Book a Demo

Book a Demo →