When you opt to use TurboTenant for your tenant screening, you will not only enjoy the fact that it is a free service for landlords, you will also enjoy the easy-to-read format of the screening report.
The report comes with a simple overview of the applicant as well as more in-depth sections. These sections contain extremely valuable information, but they also contain terminology you might not be familiar with.
In order to make the tenant screening process even simpler for you, this guide will aid you in reading the entirety of the tenant screening report. Click here to learn the difference between an application and screening report.
Table of Contents
Most of a screening report is straightforward information that is easy to understand.
However, some of the terms used in a tenant screening report could be confusing if you have never heard them used before. Below is a quick terminology guide that you can use as a point of reference for your screening report.
The first part of the report, as pictured above, is the snapshot. This is a quick overview of the applicant and gives you valuable information, such as their credit score, the number of criminal records found, evictions on record, employers on file, accounts in collection, and public records.
This section is valuable for landlords who are seeking applicants with a specific credit score. Depending on how high or low the credit score is, the numbers will show up in red, orange, yellow, or green.
At the top of the snapshot, you will see a credit recommendation. This is information we receive directly from the credit reporter and it is not our own recommendation.
It is also important to note that the credit recommendation is based solely upon the applicant’s credit score. It does not take into account any criminal records, evictions, or other information from the report.
This recommendation is based upon the following bar graph:
Another important thing to note about this section of the screening report is that the number of employers reported may not be 100 percent accurate, due to the lag in employment reporting to credit agencies.
As a landlord, you need to verify current employment and check references on your own. The applicant also reports their own income, which means you need to independently verify their income to ensure accuracy. If you want an easier way to verify income, you can utilize our Income Insights tool, which checks applicant-reported income against data from TransUnion.
Be aware, that if you decide to deny an applicant based on information in their credit report, you’ll need to follow the Fair Credit Reporting Act rules as it relates to notifying them.
Description Section: Score Factors & Criminal Records
This section will give you detailed information about any criminal records found during the background check. If the applicant does not have a criminal background, this area will read “no available data.”
In this section, you will find the case number as well as the court information for each record. You can use this information to contact the court to learn more about the criminal records or, when applicable, you can look up the description number to find out what charges are on the applicant’s record.
Profile Summary: Tradelines, Collections, & Public Records
This section may seem confusing at first glance. However, if you use the terminology guide from above, you can break down the information quickly.
Tradelines are simply accounts that the applicant has open, such as car loans, credit cards, or mortgages.
Collections numbers reflect how many accounts they currently have in collections.
Public records numbers include items like tax liens and civil judgments (with further details provided later in the report).
Negative tradelines are accounts for which payments have been missed.
Historical numbers reflect how often the applicant’s accounts have had missed payments.
Accounts, Balances, & Past Dues
This section provides details about each type of account, whether it is something with an installment payment plan, revolving (such as credit cards), or a mortgage. This section also informs you of how much is owed and how much is past due.
You can also see the total balance owed on all accounts, the total past due amount owed, and the credit limit the applicant has left.
In this example, this report shows a credit limit of $475, which is extremely low. The total past due here is $10,067, which would alert you that this applicant is in financial trouble.
This is why income verification is very important. Someone may have multiple tradelines with large monthly payments, but if they have the income to back this up, it isn’t necessarily a bad thing.
However, if they have multiple accounts that are past due, you might have a concern about their ability to pay rent on time. Make income verification easier with Income Insights.
Calendar of Payments
This section of the screening report will show you a calendar of payments.
This will let you know with green check marks when payments were made on time and with yellow, orange, and red circles the number of days a payment has been late.
This section will help you see how often the applicant misses payments or makes payments on time.
This section provides information for applicants who have had accounts sent to collections. If they do not have anything in collections, there will not be information here.
However, in this example above, you can see how many accounts are in collections, the details of what is owed, and the credit grantor name.
This section will show you what public records are on file for the applicant. These include tax liens and civil judgments.
This section will also give you details about the records and the dates they were reported.
View a prospective tenant's eviction history in this section of the report.
Why You Should Screen Your Tenants Thoroughly
As a landlord, your goal is to find a responsible tenant who pays on time and treats your property with respect. Our goal at TurboTenant is to help you do that through detailed tenant screening reports.
While, ultimately, the decision will be up to you as to who you accept and decline, you can use tenant screening to effectively learn important details about the background of an applicant.
Remember, always abide by Fair Housing regulations and ensure you use standard criteria for all applicants when determining who you will accept or reject. Also, be aware, if you deny an applicant based on information in their credit report, you’ll need to follow the Fair Credit Reporting Act rules as it relates to notifying the applicant. If you are uncertain about how to best handle the rejection and acceptance portion of screening, consult with a local attorney for advice.
DISCLAIMER: TurboTenant, LLC does not provide legal advice. This material has been prepared for informational purposes only. All users are advised to check all applicable local, state and federal laws and consult legal counsel should questions arise. Updated 10/18/22